The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Highland Park Housing Commission's (Commission) Public Housing and Public Housing Capital Fund programs (programs). The audit was part of the activities in our annual audit plan. We selected the Commission based upon its fiscal year 2005 independent auditor's report that identified it as having high-risk programs. Our objectives were to determine whether the Commission effectively administered its programs and followed HUD's requirements. This is the first of two audit reports on the Commission.
The Commission's programs administration regarding admission and occupancy, and procurement was inadequate. It did not comply with HUD's requirements and its policies in administering its admission and occupancy process. It was unable to support more than $153,000 in Public Housing operating subsidies received, did not receive total household payments of nearly $29,000, received excess total household payments of more than $13,000, and received nearly $8,000 in Public Housing operating subsidies to which it was not entitled.
The Commission's procurement activities were not conducted according to its and HUD's requirements. It did not follow HUD's requirements for full and open competition regarding the procurement of professional, housing maintenance, and general cleaning services totaling nearly $83,000 and lacked supporting documentation for more than $61,000 in work under the Commission's Public Housing Capital Fund program.
We informed the Commission's acting executive director and the Director of HUD's Detroit Office of Public Housing Hub of minor deficiencies through a memorandum, dated February 15, 2008.
We recommend that the Director of HUD's Detroit Office of Public Housing require the Commission to provide support or reimburse its applicable program from nonfederal funds for the unsupported payments, reimburse its applicable program from nonfederal funds for the improper use of funds, and implement adequate procedures and controls to help ensure that nearly $70,000 in Public Housing funds will be put to better use regarding its administration and occupancy processes.
Recommendations
Public and Indian Housing
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Status2008-CH-1003-001-AOpenClosed$153,223.00Questioned 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.
We recommend that the Director of HUD’s Detroit Office of Public Housing require the Commission to provide supporting documentation or reimburse its Public Housing program $153,223 ($22,092 for household eligibility and $131,131 for continued occupancy) from nonfederal funds for the unsupported operating subsidies related to the 36 household files cited in this finding.
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Status2008-CH-1003-001-BOpenClosed$28,663.00Questioned 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.
We recommend that the Director of HUD’s Detroit Office of Public Housing require the Commission to reimburse its Public Housing program $28,663 ($16,262 plus $12,401) from nonfederal funds for the lost total household payments for 23 households cited in this finding.
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Status2008-CH-1003-001-COpenClosed$13,070.00Questioned 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.
We recommend that the Director of HUD’s Detroit Office of Public Housing require the Commission to reimburse the appropriate households $13,070 for the underpayment of housing assistance and utility allowance payments cited in this finding.
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Status2008-CH-1003-001-FOpenClosed$7,932.00Questioned 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.
We recommend that the Director of HUD’s Detroit Office of Public Housing require the Commission to reimburse its Public Housing program $7,932 in operating subsidies from nonfederal funds for the two properties sold by the City.
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Status2008-CH-1003-002-AOpenClosed$61,202.00Questioned 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.
We recommend that the Director of HUD’s Detroit Office of Public Housing require the Commission to provide supporting documentation for the use of $61,202 for work performed under its Public Housing Capital Fund program or reimburse its program from nonfederal funds for the applicable amount.
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Status2008-CH-1003-002-BOpenClosed$82,774.00Questioned 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.
We recommend that the Director of HUD’s Detroit Office of Public Housing require the Commission to provide support that the use of $82,774 ($27,286 to three family members, $23,418 to two independent contractors, $22,150 to CLM Architects, and $9,920 to Harold Dunne, Attorney at Law) in Public Housing program funds for housing maintenance, cleaning, and professional services were reasonable or reimburse its program from nonfederal funds for the applicable amount.