Department of Health and Human Services

Office of Inspector General -- AUDIT

"Audit of Office of Community Services Discretionary Grant Award Number 90EE0153 Vermont Slauson Economic Development Corporation, Los Angeles, California,"    (A-09-01-00096)

December 10, 2001

Complete Text of Report is available in PDF format (6.22 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This report provides the results of our audit of a $500,000 discretionary grant awarded to the Vermont Slauson Economic Development Corporation (the Corporation) by the Office of Community Services.  The audit was to determine whether the Corporation (i) achieved the project goals and complied with the terms and conditions of the grant, and (ii) properly recorded, accounted for, and reported on Federal funds.  The Corporation did not accomplish the goals of the grant, which were to develop a commercial building and create 112 permanent jobs.  We also found that the Corporation did not adequately manage the grant funds in accordance with Federal regulations and the terms and conditions of the grant.  All of the costs claimed under the grant were not supported by adequate documentation.  In addition, interest earned on Federal advances of funds was not returned to the Federal Government.  We recommended that the Corporation refund $95,560 to the Federal Government and take steps to improve its management and internal controls.