We audited the Lucas Metropolitan Housing Authority’s public housing program as part of the activities in our fiscal year 2016 annual audit plan. We selected the Authority based on the results of a risk assessment of housing agencies in Region 5’s1 jurisdiction. Our objective was to determine whether the Authority complied with the U.S. Department of Housing and Urban Development’s (HUD) and its own procurement requirements.
The Authority did not always comply with HUD’s and its own procurement requirements. Specifically, it did not (1) competitively award two contracts and (2) include the required minimum and maximum amounts in its indefinite-quantity contracts. As a result, (1) the Authority inappropriately spent more than $276,000 on contracts that were awarded without competition and (2) HUD and the Authority lacked assurance that nearly $410,000 in capital funds would be used appropriately.
We recommend that the Director of HUD’s Cleveland Office of Public and Indian Housing require the Authority to (1) reimburse its Public Housing Capital Fund program $240,413 from non-Federal funds for the contracts that were awarded without competition, (2) deobligate $409,663 in capital funds from its task letters for its housing units and kitchen renovation projects, (3) reimburse its program $36,264 for the Capital Fund disbursements in excess of its indefinite-quantity contract, and (4) implement adequate procedures and controls to ensure that its contracts are procured and executed in accordance with HUD’s and its own requirements.
1Region 5 includes the States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin.