Procurement & Contracting: Five Ground Rules for Grantees and Subrecipients

Goods and services must be procured in an effective manner and in compliance with Federal, State, and local laws.  These laws exist to ensure that funds are awarded through fair and open competition and are spent on eligible and reasonably priced goods and services.  Although the majority of grantees and subrecipients comply with these rules and regulations, we are issuing this bulletin to assist you in identifying potential weaknesses in procurement and contracting procedures.

Attestation Review of HUD’s Compliance with the Office of National Drug Control Policy (ONDCP) for Fiscal Year 2025 Reporting

HUD OIG is initiating an attestation review of HUD’s Compliance with ONDCP for fiscal year 2025 reporting. At least every 3 years, HUD OIG is required to authenticate HUD’s detailed accounting of all funds expended by the agency for National Drug Control Program activities; OIG’s last review was conducted for FY 2022. Our objectve is to authenticate HUD management’s assertion of accuracy, completeness, relevance, and timeliness of the detailed accounting of all funds expended by the Department for National Drug Control Program activities during FY 2025.

 

Audit of HOME and HOME ARP Grantee Draws Near Pause in Federal Funding

HUD OIG is auditing the HOME Investments Partnerships and HOME American Rescue Plan (ARP) programs. During 2025, grantees drew down over $1 billion in HOME program formula grant funds intended for a wide range of housing activities for low-income people, and ARP pandemic funds intended to benefit persons who are homeless, at risk of homelessness, or other vulnerable populations. Our objective is to identify if HOME and HOME ARP draws made by grantees near the time of a hold in federal funding were in accordance with program requirements. 

New York City Department of Social Services ESG CARES Act Improper Payments

HUD OIG is auditing a New York-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 determine if improper payments exist in the grantee’s program.  

A California-Based Grantee ESG CARES Act Improper Payments Audit

HUD OIG is auditing a California-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 determine if improper payments exist in the grantee’s program.

A Hawaii-Based Grantee ESG CARES Act Improper Payments Audit

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 determine if improper payments exist in the grantee’s program.

Assessment of HUD's Implementation and Tracking of the President's National Drug Control Strategy

We are auditing HUD’s implementation and tracking of the President’s National Drug Control Strategy (Strategy) as directed by the White House’s Office of National Drug Control Policy. For FY2023, HUD has administered more than $3.2 billion in Recovery Housing Program (RHP) and Continuum of Care (CoC) Program funding as part of the agency’s efforts in reducing the number of overdose deaths in the United States.

HUD's Office of Community Planning and Development Monitoring of Civil Rights Compliance

HUD OIG is auditing the Office of Community Planning and Development's monitoring of civil rights compliance. Fair housing and civil rights are critical in making sure all Americans have equal access to the housing of their choice. The audit objective is to assess the extent to which HUD's Office of Community Planning and Development monitored civil rights compliance in their program activities. 

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.
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