Federal Reports

We audited the City of Detroit’s Housing and Revitalization Department’s Lead Hazard Reduction Demonstration Grant Program based on our analysis of the U.S. Department of Housing and Urban Development’s (HUD) Office of Lead Hazard Control and Healthy Homes’ grantees in Region 5’s jurisdiction.[1] Our audit objective was to determine whether the Department administered the Program in accordance with HUD’s requirements.The Department did not administer the Program in accordance with HUD’s requirements. Specifically, it did not (1) maintain documentation to support that healthy homes assessment and data collection services were cost reasonable, (2) ensure that landlords gave preference in renting vacant assisted units to targeted families, (3) maintain adequate lead inspection documentation to support that lead-based paint hazard control activities were necessary, (4) obtain HUD approval before spending healthy homes supplemental funds in excess of $5,000 per unit, and (5) calculate annual income correctly for one assisted household. As a result, the Department and HUD lacked assurance that more than $616,000 in Program funds was used in accordance with HUD’s requirements. We recommend that the Director of HUD’s Office of Lead Hazard Control and Healthy Homes require the Department to (1) support that the contract for healthy homes assessment and data collection services was cost reasonable, (2) support that landlords gave preference in renting vacant assisted units to targeted families, (3) support that lead-based paint hazard control activities were necessary, (4) coordinate with HUD to determine whether healthy homes supplemental funds used in excess of $5,000 per unit were used for eligible activities, and (5) implement adequate procedures and controls to address the findings cited in this audit report.

Final FY 2019 OIG Management Challenges Report 09272019

We estimated that Minnesota made unallowable capitation payments totaling at least $3.7 million ($3.2 million Federal share) to MCOs on behalf of deceased beneficiaries during our audit period. Of the 100 capitation payments in our random sample, Minnesota made 95 unallowable payments totaling $62,665 ($55,932 Federal share).