The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Benkelman Housing Authority based on a request from the U.S. Department of Housing and Urban Development, Office of Inspector General (HUD OIG), Office of Investigation. Additionally, HUD conducted an onsite assessment in May 2016 and identified concerns, including procurement, income verification, travel policy, and significant control deficiencies. Our audit objective was to determine whether the Authority followed HUD’s rules and regulations for public housing programs related to procurement and maintenance, tenant certifications, laundry machine income, and expenditures.
The Authority did not always comply with procurement and maintenance policies, improperly completed initial tenant certifications and annual recertifications, improperly certified tenants with potential conflict-of-interest relationships, and mismanaged its laundry machine revenue.
We recommend that the Director of HUD’s Omaha, NE, Office of Public Housing require the Authority to provide adequate documentation to support that the $71,034 spent for improperly procured goods and services was spent at the most competitive prices and provide adequate documentation to support more than $15,000 spent for maintenance activities. Additionally, we recommend that HUD (1) work with the Authority to develop a formalized process, such as a checklist, when conducting initial certifications and annual recertifications, which would help to ensure that it follows HUD requirements for its public housing program; (2) require the Authority to conduct a 100 percent review of its tenant files to ensure that tenants’ rents are accurate and the proper income, asset, and medical expenses are complete and documented in the tenant files; and (3) require the Authority to address actual or potential conflict-of-interest relationships in its Admissions and Continued Occupancy Policy. We also recommend that HUD require the Authority to develop and implement detailed policies and procedures to address collections, tracking, and use of its laundry machine revenue.
Recommendations
Public and Indian Housing
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Status2018-KC-1004-001-AOpenClosed$71,034.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on Diciembre 18, 2019Provide adequate documentation to support that the $71,034 spent for improperly procured goods and services was spent at the most competitive prices. For any amounts not supported, it should reimburse its program from non-Federal funds.
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Status2018-KC-1004-001-BOpenClosed$15,280.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on Diciembre 18, 2019Provide adequate documentation to support $15,280 spent for maintenance activities. For any amounts not supported, it should reimburse its program from non-Federal funds.
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Status2018-KC-1004-001-COpenClosedClosed on Mayo 21, 2019
Develop and implement detailed operating procedures, including checklists, which fully implement its procurement policy and HUD requirements.
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Status2018-KC-1004-001-DOpenClosedClosed on Mayo 21, 2019
Ensure that its executive director obtains appropriate procurement training.
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Status2018-KC-1004-002-AOpenClosedClosed on Julio 22, 2019
Work with the Authority to develop a formalized process, such as a checklist, to use when conducting initial certifications and annual recertifications, which would help to ensure that it follows HUD requirements for its public housing program.
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Status2018-KC-1004-002-BOpenClosedClosed on Julio 19, 2019
Require the Authority’s executive director to obtain appropriate training regarding public housing occupancy requirements.
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Status2018-KC-1004-002-COpenClosedClosed on Julio 22, 2019
Require the Authority to conduct a 100 percent review of its tenant files to ensure that tenants’ rents are accurate and the proper income, asset, and medical expenses are complete and documented in the tenant files.
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Status2018-KC-1004-002-DOpenClosedClosed on Julio 22, 2019
Monitor the Authority after the recommended training and tenant file reviews are complete to ensure that the executive director understands and properly implements public housing occupancy requirements.
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Status2018-KC-1004-003-AOpenClosedClosed on Julio 12, 2019
Require the Authority to address actual or potential conflict-of-interest relationships in its Admissions and Continued Occupancy Policy.
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Status2018-KC-1004-003-BOpenClosedClosed on Julio 12, 2019
Work with the Authority to develop a plan to ensure that a third party reviews the initial tenant certifications and annual recertifications with an actual or potential conflict of interest.
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Status2018-KC-1004-003-COpenClosedClosed on Julio 12, 2019
Ensure that the Authority’s board of commissioners and staff receive HUD-approved training on conflicts of interest.
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Status2018-KC-1004-003-DOpenClosedClosed on Julio 19, 2019
Monitor the Authority to ensure that initial tenant certifications and annual recertifications with an actual or potential conflict of interest are appropriately handled.
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Status2018-KC-1004-004-AOpenClosedClosed on Mayo 21, 2019
Require the Authority to develop and implement detailed policies and procedures to address collections, tracking, and use of its laundry machine revenue.
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Status2018-KC-1004-004-BOpenClosedClosed on Julio 12, 2019
Require the Authority to determine how much laundry machine revenue was not deposited into its accounts and used for eligible purposes and reimburse its program from non-Federal funds.
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Status2018-KC-1004-004-COpenClosedClosed on Julio 12, 2019
Monitor the Authority to ensure compliance with its new laundry machine revenue policies.