U.S. Department of Housing and Urban Development Wanamaker Building, Suite 1005 100 Penn Square East Philadelphia, PA 19107-3380 District Inspector General for Audit April 13, 1998 Audit Related Memorandum No. 98-PH-241-1803 MEMORANDUM FOR: Lynn Daniels, Director of Community Planning and Development Division, Pittsburgh Area Office, 3ED FROM: Edward F. Momorella, District Inspector General for Audit, Mid-Atlantic, 3AGA SUBJECT: City of Sharon Survey of CDBG Program Sharon, Pennsylvania Based on a citizen complaint we surveyed the operation of the City of Sharon’s CDBG Program. The purpose of the survey was to review the City’s administration of the CDBG Program, pursue the complainant’s allegations, and determine whether further audit work was necessary. We interviewed Community Planning and Development staff, reviewed field office files, the City’s latest IPA audit report, and Grantee Performance Report. We visited the City and interviewed City staff, and the complainant. We reviewed meetings of minutes, interviewed contractors and loan recipients, and performed on-site physical inspections of CDBG work performed. The complainant alleged that HUD funds received by the City were improperly used and have disappeared. We interviewed the complainant who was unable to produce specific leads or documentation to support the allegations. The complainant was upset with the City because an application for a rehabilitation loan was determined not eligible. Further the complainant applied for rehabilitation loans for owned rental properties, but refused to provide the City income data on tenants. Visit the Office of Inspector General’s World Wide Web site at http://www.hud.gov/oig/oigindex.html Transaction tests were performed in the following areas: • Procurement • Public improvements • Home rehabilitation Independent Public Accountant audits and annual GPR submissions to the field office identify that all funds received by the City are accounted for. Field office staff advised us they had no concerns or outstanding issues relative to the City’s CDBG Program. Our review identified that the City’s rehabilitation loan application required additional pertinent information, and should be amended to include the applicant’s signature, social security number, and date. Our recommendation was brought to the attention of the Assistant Program Director for implementation. Based on our review, we have concluded that the complainant’s allegations were not justified, and no additional audit work is currently necessary. A copy of this memorandum was provided to the City. If you have any questions please contact Irving I. Guss, Assistant District Inspector General for Audit at (215) 656-3401. Attachment - Distribution cc: Oswald Cianci 3AGA:GUSS:AMP:04/10/98 Correspondence Code 3AGA Concurrence GUSS Date 2 Attachment DISTRIBUTION Secretary’s Representative, Mid-Atlantic, 3AS Internal Control & Audit Resolution Staff, 3AFI Director of Community Planning & Development, Pittsburgh Area Office, 3ED Area Coordinator, Pittsburgh Office, 3ES Asst to the Deputy Secretary for Field Mgmt, SDF (Room 7106) ALO, Community Planning & Development, DG (Room 7214) Chief Financial Officer, F (Room 10164) Deputy Chief Financial Officer for Finance, FF (Room 10164) Deputy Secretary, SD (Room 10100) Asst Secretary for Community Planning & Development, D (Room 7100) Asst Secretary for Congressional and Intergovernmental Relations, J (Room 10120) Deputy Asst Sec for Public Affairs, W (Room 10220) Chief of Staff, S (room 10000) Counselor to the Secretary, S (room 10234) Senior Advisor to the Secretary for Community Policy, S (Room 10222) Acting, Assistant to the Secretary for Labor Relations, SL (Room 7118) Associate General Counsel Office Of Assisted Housing & Community Development, CD (Room 8162) Acting General Counsel, CB (Room 10214) Director, Housing and Community Development Issue Area, U.S. GAO, 441 G Street, NW, Room 2474, Washington, DC 20548 Ranking Member, Committee on Governmental Affairs, US Senate, Washington, DC 20515 Chairman, Committee on Government Affairs, US Senate, Washington, DC 20515 Government Reform and Oversight Committee, Congress of the US, House of Representatives, Washington, DC 20510 Chairman, Committee on Government Reform and Oversight, House of Representatives, Washington, DC 20515 Subcommittee on General Oversight and Investigations, Room 212, O’Neill House Ofc Bldg, Washington, DC 20515 Executive Director, Dept of Community Development, City of Sharon, 155 W. Connelly Blvd, Sharon, PA 16146 3
City of Sharon, Sharon, PA
Published by the Department of Housing and Urban Development, Office of Inspector General on 1998-04-13.
Below is a raw (and likely hideous) rendition of the original report. (PDF)