We audited the Homelessness Prevention and Rapid Re-Housing Program (HPRP) of Special Services for Groups (Special Services) based on the results of a separate audit of the City of Los Angeles Housing Department (Department). Special Services is a subrecipient of the Department’s HPRP. HPRP is part of the American Recovery and Reinvestment Act of 2009 (Recovery Act), and auditing Recovery Act programs is one of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) audit priorities.

We audited Lutheran Social Services of Northern California (auditee) in response to a hotline complaint. The complaint alleged that the auditee misused Homelessness Prevention and Rapid Re-Housing Program (HPRP) funds. The specific allegations included (1) ineligible purchases using employee credit cards, (2) unreasonable rental of storage units, (3) caseworkers qualifying family and friends for HPRP who were not eligible, (4) diversion of HPRP funds, and (5) forged documents for check disbursements from the auditee’s Sacramento office.

HUD OIG performed an audit of the State of Alabama Department of Economic and Community Affairs, Homelessness Prevention and Rapid Re-Housing Program in Montgomery, Alabama. The audit was part of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) annual audit plan to review grant activities funded by the American Recovery and Reinvestment Act of 2009 (Recovery Act). We selected the grantee because it received $13.1 million, which was the largest single Program grant awarded within Alabama under the Recovery Act.