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July 17, 2017
  • Community Planning and Development
2017-AT-1007
2017-AT-1007.pdf

We audited the City of Atlanta, GA, and its subrecipient, the Fulton County-City of Atlanta Land Bank Authority.  We began our review of the City’s administration of its Neighborhood Stabilization Programs 1 (NSP1) and 3 (NSP3) grants because it aligns with our goal in the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s annual audit plan to improve HUD’s execution of and accountability for grant funds.  Our audit objective was to determine whether the City of Atlanta administered the NSP1 and NSP3 grants of its subrecipient, the Fulton County-City of Atlanta Land Bank Authority, in accordance with HUD regulations. 

The City did not properly administer the NSP1 and NSP3 grants of its subrecipient, the Land Bank, in accordance with Federal requirements.  This condition occurred because the City did not maintain proper oversight of its subrecipient.  In addition, the City and the Land Bank did not implement proper procedures to ensure that NSP funds were properly supported.  Therefore, the City provided the Land Bank NSP funds without adequate assurance that the funds would be properly accounted for in accordance with HUD requirements. 

We recommend that the Director of the Atlanta Office of Community Planning and Development require the City to (1) provide adequate monitoring to the Land Bank to ensure that the subrecipient follows Federal regulations, (2) provide adequate support for expenses totaling $48,985, (3) ensure that the Land Bank completes and clears all outstanding annual audits and develops and implements adequate financial and file management policies and procedures, and (4) reprogram the remaining NSP1 funds of $219,851 and NSP3 funds of $28,745 to another subrecipient or developer or reimburse the funds to the U.S. Treasury.

Recommendations
Recommendation Status Date Issued Summary
2017-AT-1007-001-A Closed July 17, 2017 Provide adequate monitoring to the Land Bank to ensure that the subrecipient follows Federal regulations as required, including policies and procedures to help verify subrecipient compliance or address any deficiencies in need of correcting, such as annual audits, financial management systems, and file management.
2017-AT-1007-001-B Closed July 17, 2017 Provide adequate support for expenses totaling $48,985. Any expenses that are not supported should be repaid to the appropriate NSP grant from non-Federal funds.
2017-AT-1007-001-C Closed July 17, 2017 Ensure that the Land Bank completes and clears all outstanding annual audits for fiscal years 2012 through 2016.
2017-AT-1007-001-D Closed July 17, 2017 Ensure that the Land Bank develops and implements adequate financial and file management policies and procedures to ensure that files are auditable and financial records adequately identify the source and application of federally sponsored activities in accordance with Federal regulations.
2017-AT-1007-001-E Closed July 17, 2017 Reprogram the remaining NSP1 funds of $219,851 and NSP3 funds of $28,745 to another subrecipient or developer or return the funds to the U.S. Treasury.