HUD OIG performed an audit of the Housing Authority of the City of Conyers' administration of its disbursements and procurement procedures. The Georgia State Office of Public Housing requested the audit due to concerns regarding the use of its funds and violation of its procurement procedures The purpose of the audit was to determine whether the Authority used its federal funds in compliance with HUD regulations and other requirements.

The Authority used $891,468 in federal funds to pay ineligible and unsupported costs. It did not establish effective controls to protect its assets. The Authority's board did not ensure that the former executive director expended funds in accordance with Authority and HUD requirements, adequately documented expenditures, and followed procurement policies.

OIG recommended that the Director of HUD's Atlanta Office of Public Housing require the Authority to repay $185,764 to its public housing operating and capital improvement programs for ineligible payments made to or on behalf of the former board chairman, support $182,369 in payments made to or on the behalf of the former executive director and the former lease enforcement officer, provide documentation to support $523,335 in payments made for various purchases or repay its public housing program, review and implement internal controls for purchasing goods and services, and ensure that its board performs its oversight duties in a responsible manner. OIG also recommended that the Acting Director of the Departmental Enforcement Center, in coordination with the Director of the Office of Public Housing, take appropriate administrative action against the Authority officials responsible for the improper disbursements.