We audited the City of Tulsa's (City) Community Development Block Grant (CDBG) program due to a departmental request. Our initial objective was to determine whether the City expended CDBG funds in accordance with U. S. Department of Housing and Urban Development (HUD) rules and regulations. Based upon the initial results, we modified the objective to determine whether the City ensured that its largest subrecipient, the Tulsa Development Authority (Authority), expended CDBG funds within HUD rules and regulations for its acquisition, clearance, relocation, and disposition activities.
While the City generally monitored other subrecipients, it did not monitor or supervise its largest subrecipient, the Authority. From October 1, 2005, through September 30, 2007, the Authority inappropriately expended $1.5 million for its CDBG acquisition, clearance, and relocation activities. However, it did not have specific disposition plans for its CDBG-acquired properties and only benefited the low- to moderate-income community "whenever possible." In addition, the Authority's acquisition and clearance projects did not have the HUD-required environmental reviews.
We recommended that the Director, Oklahoma City Office of Community Planning and Development require the City to adopt written policies and procedures for its CDBG program for day-to-day operations that include procedures to ensure that it monitors all of its subrecipients in accordance with HUD and local requirements; require the Authority to develop and implement specific plans for its future CDBG acquisitions and currently owned CDBG properties that will benefit the low- to moderate-income community as a whole and individually, which would put more than $8.9 million to better use; support or repay more than $1.5 million for funds that the Authority could not support in performing its acquisition, clearance, relocation, and disposition activities; and perform the necessary environmental reviews when acquiring or clearing land.