Federal Reports

We found that improvements were needed in the Department’s monitoring of Rural Education Achievement Program grantees’ performance and use of funds. We specifically noted that the Department conducted limited monitoring to determine whether grantees were makingprogress toward program goals or spending grant funds in accordance with statutory and regulatory guidelines. Instead, oversight efforts were primarily focused on ensuring grantees were obligating and spending funds by established deadlines. Although we concluded that the Department’s program monitoring could be improved, we found that the Department’s rural education coordination efforts appeared to be effective.

Treasury’s Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (the “Hardest Hit Fund” or “HHF”) program provides Troubled Asset Relief Program (“TARP”) dollars tohomeowners in 19 states to prevent foreclosures. This includes homeowners in Nevada. HHF is largely targeted at unemployment and underwater homes.Rather than Treasury giving these rescue funds directly to homeowners, Treasury entered into a contract with each state’s housing finance agency to make decisions on which homeowners are admitted into the program and be the conduit for these funds from Treasury to homeowners. Treasury contracted with Nevada’s housing finance agency, the Nevada Housing Division (“NHD”), who outsourced HHF to what was its component entity at the time, the Nevada Affordable Housing Assistance Corporation (“NAHAC”). At the time, NHD officials comprised a majority of the Executive Committee of NAHAC’s board. Given that NHD is the agency responsible under Treasury’s contract, SIGTARP refers to both as the “state agency.”Treasury will pay only those expenses of the state agency necessary to provide the HHF services. In 2015, SIGTARP reported that homeowners in Nevada were not receiving HHF funds. This ledSIGTARP to open a forensic audit of spending of Hardest Hit Fund dollars in Nevada.