We audited the Hoboken, NJ, Housing Authority’s administration of its Recovery Act Capital Fund program in support of HUD OIG’s audit plan goals to oversee Recovery Act-funded activity and improve HUD’s execution of and accountability for its fiscal responsibilities. We selected the Authority based on a risk assessment, which considered the Authority’s funding, the U.S. Department of Housing and Urban Development’s (HUD) risk analysis, and prior OIG audits. The audit objectives were to determine whether Authority officials obligated and expended the capital funds in accordance with the Recovery Act and HUD regulations and complied with Recovery Act reporting requirements.
Authority officials generally administered the Recovery Act Capital Fund program in accordance with regulations. Specifically, they established and implemented adequate controls to ensure that their funds awarded under the Recovery Act were obligated and expended as required. However, there was inadequate support that $8,903 was obligated in a timely manner and $9,000 was expended for an eligible cost, and $83,642 of costs were misclassified.
We recommend that HUD instruct Authority officials to provide supporting documentation for the obligation of $8,903 in Recovery Act capital funds, or take appropriate action to recapture the funds in accordance with the Recovery Act, and ensure that their revised Actual Modernization Cost Certificate and HUD’s Line of Credit Control System reconcile with the corrective action taken for the misclassification of $83,642 in costs.