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We audited the Housing Authority of the City of Little Rock’s American Recovery and Reinvestment Act of 2009 funding. The Authority received more than $6.5 million in Recovery Act funds through three grants: one formula and two competitive. Our objectives were to determine whether the Authority (1) obligated and expended its Recovery Act funding in accordance with HUD rules and regulations and (2) followed Recovery Act reporting requirements.

The Authority generally complied with Recovery Act requirements. However, it did not always follow the Buy American provision or reporting requirements. Specifically, the Authority purchased $31,725 in products manufactured and assembled outside the United States for Recovery Act-funded projects. Also, for one grant, the Authority did not accurately report the number of jobs created.

We recommended that the Arkansas Director of Public Housing require the Authority to repay $31,725 from non-federal funds that was misspent on products manufactured and assembled outside the United States and implement controls to prevent future occurrences. Also, the Authority should correct the number of jobs created in its next quarterly report.