We performed a review of the State of Louisiana, Office of Community Development’s (State), Louisiana Tourism Marketing Program (Program), administered by the State’s subrecipient, the Department of Culture, Recreation and Tourism (DCRT). We initiated the review as part of the Office of Inspector General (OIG) Gulf Coast Region’s audit plan and examination of activities related to Gulf Coast hurricane disaster relief efforts. Our objective was to determine whether the DCRT, as the State’s subrecipient, ensured that Program disbursements were adequately supported.
The DCRT generally ensured that Program disbursements were adequately supported. However, in a few instances, it did not maintain adequate records to support the eligibility of costs. In addition, the DCRT did not always ensure that supporting documentation was readily available for review. These conditions occurred because the State did not ensure that the DCRT (1) complied with the terms of its agreement as related to the maintenance of records, or (2) had adequate written Program policies and procedures for the review and approval of Program disbursements. As a result, the State was unable to support $82,752 of Program costs.
We recommend that the HUD’s Director for the Disaster Recovery and Special Issues Division require the State (1) support or repay its Program $82,752 in unsupported costs, (2) consider reviewing a sample of the remaining 128 disbursements, related to the five subrecipients, to provide reasonable assurance that the disbursements are adequately supported, and (3) ensure that the DCRT’s invoice file records are readily available for review.