The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Housing Authority of the City of Mountain Grove, MO (Authority), in response to a citizen’s complaint received by our office. The complaint made allegations related to asset misappropriations, a procurement violation, and conflicts of interest. Our objective was to determine whether the allegations were valid.

The allegations related to asset misappropriations were valid. The Authority improperly disposed of Authority assets without the required board approval and without establishing the fair value of the assets. We could not fully substantiate the allegation related to the contract procurement violation. However, irregularities related to the alleged procurement violation existed. The allegations of conflicts of interests were not valid.

This memorandum directly addresses the allegations made by the complainant. We will issue a separate audit report that will include findings related to the complaint and will address additional issues noted during our audit.

This memorandum report contains no recommendations, and no formal response was required or received.