We recommend that the Director for HUD’s Office of Disaster Recovery work with its grantee to resolve or correct program income balances for the three grants that had program income balances outstanding.
Publication Report
2023-FW-0002 | May 17, 2023
HUD’s Oversight of CDBG-DR Grantees’ Use of Program Income
We audited the U.S. Department of Housing and Urban Development’s (HUD), oversight of Community Development Block Grant Disaster Recovery (CDBG-DR) grantees’ use of program income. We initiated this audit in accordance with our goal of ensuring and… moreRelated Recommendations
Community Planning and Development
- Status2023-FW-0002-001-AOpenClosed$2,551,375.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
We recommend that the Director for HUD’s Office of Disaster Recovery require grantees to support or repay to its program $2,551,375, from nonfederal funds, for the 9 vouchers that did not have adequate supporting documentation for expenditures.
- Status2023-FW-0002-001-COpenClosed
We recommend that the Director for HUD’s Office of Disaster Recovery develop and implement controls to ensure that program income balance discrepancies are identified and corrected.
- Status2023-FW-0002-001-DOpenClosed
We recommend that the Director for HUD’s Office of Disaster Recovery develop and implement controls to ensure that untimely FFRs are identified and corrected.
- Status2023-FW-0002-001-EOpenClosed
We recommend that the Director for HUD’s Office of Disaster Recovery establish a mechanism to train grantees and HUD staff on existing guidance regarding supporting documentation for expenditures, FFRs, and program income balances on a recurring basis. Additionally, provide guidance and establish recurring training for HUD staff to monitor grantees for program income and submission of the FFRs..
- Status2023-FW-0002-001-FOpenClosed
We recommend that the Director for HUD’s Office of Disaster Recovery implement quality control procedures to ensure that HUD staff completes the action plan and QPR checklists.
We recommend that the Director for HUD’s Office of Disaster Recovery develop and implement controls to ensure that grantees’ policies and procedures related to program income are adequate.
- Status2023-FW-0002-001-HOpenClosed
We recommend that the Director for HUD’s Office of Disaster Recovery provide training to grantees regarding the reporting, tracking, and expenditure of program income.