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Hawaii-based Grantee ESG-CV Program Fraud Risk Management Assessment

HUD OIG is auditing a Hawaii-based grantee's Coronavirus, Aid, Relief, and Economic Security (CARES) Act, Emergency Solutions Grants (ESG-CV) program. The CARES Act provided nearly $4 billion in special ESG funds to grantees to prevent, prepare for, and respond to the coronavirus pandemic and supports activities, such as, rapid re-housing, homelessness prevention programs, and emergency shelters for people experiencing homelessness. Our objective is to assess the grantee's fraud risk framework, which encompasses control activities to prevent, detect, and respond to fraud.

HUD NDR Project Activity Status

HUD OIG is auditing HUD's CDBG-DR National Disaster Resilience (NDR) program, which was designed to promote risk assessment, stakeholder engagement, and resilience planning to states and communities. Under this program, HUD awarded nearly $1 billion to 13 States and local governments for resilient infrastructure, housing, and economic revitalization activities related to major disasters that occurred between 2011 and 2013.

The Virgin Islands Housing Finance Authority’s Administration of Its Non-Federal Match Program Had Weaknesses

We audited the Virgin Islands Housing Finance Authority’s Non-Federal Match Program for Community Development Block Grant Disaster Recovery (CDBG-DR) funds.  This Match Program was developed to assist non-Federal entities in paying for their share of projects that addressed unmet needs because of the 2017 Hurricanes Irma and Maria.  We initiated this audit due to the $415 million of CDBG-DR funds allocated by the Authority and to support the U.S.

HUD's Oversight of CDBG-DR Grantees' Use of Program Income

We recommend that the Director for HUD’s Office of Disaster Recovery establish a mechanism to train grantees and HUD staff on existing guidance regarding supporting documentation for expenditures, FFRs, and program income balances on a recurring basis. Additionally, provide guidance and establish recurring training for HUD staff to monitor grantees for program income and submission of the FFRs..