The online versions of nearly all OIG documents are presented in Adobe's Portable Document Format (PDF). To view documents, you can download Adobe Reader for free.
Kentucky External Audit Reports
Audit Reports issued between 1995 and 2006 are available by request. Please contact your local field office for more information.
Issue Date: August 11, 2010
Audit Report No. 2011-AT-1014
Title: Louisville-Jefferson County Metropolitan Government Generally Complied With Recovery Act Requirements for Its Homelessness Prevention and Rapid Re-Housing and Community Development Block Grant-Recovery Programs
We reviewed the Louisville-Jefferson County Metropolitan Government’s administration of its Homelessness Prevention and Rapid Re-Housing Program (HPRP) and Community Development Block Grant-Recovery (CDBG-R) program. We selected Louisville Metro for review because it received the largest grants in Kentucky with the exception of the State of Kentucky, and the U.S. Department of Housing and Urban Development (HUD) had not conducted monitoring of either grant. Our objective was to determine whether Louisville Metro administered its HPRP and CDBG-R grants in compliance with the requirements of the American Recovery and Reinvestment Act of 2009 and other applicable requirements. Specifically, our objectives were to determine whether Louisville Metro had adequate policies and procedures in place to ensure that (1) the program participants were eligible, (2) the program expenditures were supported with adequate documentation, (3) the program reporting requirements were met, and (4) the subgrantees were monitored and trained.
Louisville Metro generally complied with Recovery Act requirements for its HPRP and CDBG-R grants. The report contains no recommendations.
Issue Date: September 17, 2010
Audit Report No. 2010-AT-1013
Title: The Louisville/Jefferson County Metropolitan Government Needs To Strengthen Controls Over Reporting for Its Neighborhood Stabilization Program
HUD OIG reviewed the Louisville/Jefferson County Metropolitan Government's (Louisville
Metro) Neighborhood Stabilization Program (program). We selected Louisville Metro
for review based on its low percentage of obligations and the approaching September
20, 2010, deadline for obligating funds. Our objective was to evaluate Louisville
Metro's use of program funding, including the propriety of its activities, obligations,
expenditures, and reports to the U.S. Department of Housing and Urban Development
(HUD).
Louisville Metro generally administered its program in accordance with HUD's rules
and regulations and was making progress in obligating its funds. However, it was
not always accurate in its reporting to HUD due to weak internal controls.
OIG recommended that the Director of the Louisville Office of Community Planning and Development continue to monitor Louisville Metro's progress in obligating its program funds to ensure that it meets the September 20, 2010, deadline. We also recommended that Louisville Metro strengthen internal controls over reporting.
Issue Date: April 28, 2010
Audit Report No. 2010-AT-1003
Title: The Housing Authority of Whitesburg, Kentucky, Mismanaged Its Operations
We audited the Housing Authority of Whitesburg, Kentucky (Authority) pursuant to a request by the director of the Office of Public Housing, Kentucky State Office. Our objective was to determine whether the Authority properly accounted for cash receipts and disbursements, and made procurements in accordance with federal requirements. Â
The Authority badly mismanaged its operations. It did not properly account for rental receipts of about $134,889. It failed to prepare and file some quarterly tax returns and failed to deposit about $64,341 in federal withholding taxes with the Internal Revenue Service. It could not provide proper support for numerous disbursements totaling $264,229, and spent $29,347 for various unnecessary and/or unreasonable costs. The Authority failed to follow federal procurement regulations when awarding $446,918 in capital fund program contracts and change orders, and could not provide support for $275,282 in capital fund drawdowns. As a result, fewer funds were available for the Authority's primary mission, and the Authority's financial condition deteriorated to the extent that it was unable to fully meet its financial obligations. These deficiencies occurred because of ineffective management and lax internal controls, including insufficient oversight by the Authority's board.
We recommend that HUD declare the Authority in substantial default in accordance with Annual Contributions Contract Section 17 and require the Authority take action necessary to (1) Establish an effective system of internal controls for all aspects of Authority operations; (2) Account for $134,889 in tenant rent receipts, provide support for $264,229 in disbursements and $275,282 in drawdowns; Â (3) Provide support that $446,918 in contracts were fairly and openly competed; (4) File missing tax returns and make all required tax deposits; and (5) Implement requested actions in the existing Memorandum of Agreement between HUD and the Authority. We also recommend that the Departmental Enforcement Center take appropriate administrative action against the Authority officials responsible for badly mismanaging its operations.