At the request of the U.S. Department of Housing and Urban Development’s (HUD) Greensboro, NC, Director of Community Planning and Development, we reviewed Mecklenburg County’s (County) administration of its Shelter Plus Care program (program). Our objectives were to determine whether the County paid for only eligible program administrative expenses; housed its participants in decent, safe, and sanitary units; and properly documented its program participant files.
The County mismanaged its program. It paid program administration expenses without adequate supporting documentation; housed participants in units that were not decent, safe, and sanitary; and failed to ensure that participant files were properly documented in compliance with HUD’s requirements. These deficiencies occurred because the County failed to develop and implement a system of internal controls, including controls needed to ensure that the contractor hired to administer the program complied with HUD’s requirements. As a result, the County spent $441,100 for unsupported program costs, $11,047 for ineligible costs, and $14,028 in housing assistance payments for units that were in material noncompliance with housing quality standards.
OIG recommends that the Director of the Greensboro Office of Community Planning and Development require the County to develop and implement an adequate system of internal controls to ensure that it complies with all program requirements. The County must also repay $25,075 in ineligible expenses from non-Federal funds, and provide documentation showing that $441,100 in unsupported expenses was eligible or repay that amount from non-Federal funds.