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We audited the West Memphis Housing Authority (Authority) in Arkansas as part of our annual audit plan to review American Reinvestment and Recovery Act (Recovery Act). Our objective was to determine whether obligations the Authority made between January 30 and March 17, 2010, were appropriate, prudent, eligible, and supported, whether procurements and disbursements were made in accordance with requirements.

Generally, the Authority complied with Recovery Act requirements regarding the obligation of capital funds, including complying with procurement requirements. However, it did not comply with all requirements and could strengthen its controls. The instances of noncompliance appeared to have been oversights by the Authority.

We recommended actions to correct the over-obligations and strengthen controls.