Salem, Oregon- As the global landscape grappled with the unprecedented challenges posed by the COVID-19 pandemic, thousands of Oregonians faced the looming threat of eviction due to economic hardships. In response, the Emergency Rental Assistance Program (Oregon ERA) was established by the state to provide federal funding and stabilize the housing crisis. However, an audit by the Oregon Audits Division reveals significant shortcomings in the program’s execution.
Administered by Oregon Housing and Community Services (OHCS), the program successfully distributed $426 million in emergency rental assistance by June 2023. Yet, the expedited implementation came at a cost, with the audit shedding light on critical oversights and lapses in financial controls. The audit highlighted the overall hurried pace, that led to OHCS bypassing essential safeguards, including oversight on financial accounting and contract administration.
The Statewide Single Audit earlier in the year emphasized these control weaknesses, prompting auditors to issue an adverse opinion—a rare occurrence in the division’s history. The urgency of the situation, while acknowledged, underscores the vital need for agencies to establish robust financial controls to ensure compliance with federal guidelines. Failure to do so may result in funds being reclaimed by the federal government.
Fraud emerged as a substantial risk during Oregon ERA, with approximately $37 million denied due to potentially fraudulent applications, as reported by community action agencies. The rushed implementation of new software and a disjointed customer service system further exacerbated challenges, causing delays in application processing and communication breakdowns.
Audits Director Kip Memmott expressed concern, stating, “It’s extremely concerning that OHCS is unable to verify whether millions of dollars went to the Oregonians who needed and deserved this money the most.”
The Oregon Audits Division has outlined several recommendations for OHCS, including improved preparation for future emergencies, enhanced internal controls for contract monitoring and outcome reporting, and more robust measures against fraud. The report emphasizes the importance of obtaining accurate client data to effectively address Oregon’s housing needs.
Despite the conclusion of Oregon ERA in June 2023, the lessons learned from its implementation remain pertinent. OHCS, tasked with addressing the ongoing homelessness crisis in Oregon, faces the challenge of administering millions of dollars.
By implementing the audit’s recommendations and applying the lessons learned from Oregon ERA, authorities hope to ensure future programs are successful and funding is meticulously accounted for.
Source: State of Oregon
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