We reviewed the City of Moore, OK, because it received $52.2 million in Community Development Block Grant Disaster Recovery (CDBG-DR) funding in response to the tornado that struck Moore on May 20, 2013. Further, the City only recently became a CDBG entitlement grantee, and there was a substantial increase between its regular CDBG funding and its CDBG-DR funding. Also, our annual audit plan placed a priority on reviewing entities that received disaster funding. Our objective was to determine whether the City had the capacity to expend its CDBG-DR funds in accordance with rules and regulations.
With minor exceptions, the City generally demonstrated the capacity to expend its CDBG-DR funds in accordance with requirements. However, it did not always maintain supporting documentation for its small purchase quotes or verification of contractor eligibility. In addition, it did not always include required provisions in its contracts. The City was unaware of the need to maintain supporting documentation and include certain contract provisions. It corrected these exceptions during the review. Also, the City had not submitted its required quarterly reports. The City had to reopen its action plan, which prevented it from submitting its quarterly reports. The U.S. Department of Housing and Urban Development (HUD) corrected this issue, giving the City access to submit its quarterly reports. If the City continues to follow its procedures and progresses with its plans, it should have the capacity to expend its CDBG-DR funding appropriately.
We recommend that HUD require the City to (1) continue implementing the financial system upgrade and (2) submit its quarterly reports to HUD in a timely manner.