The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited HUD's Office of Public Housing and Voucher Programs to determine whether HUD reasonably ensured that public housing agencies properly managed their housing choice voucher net restricted assets and to determine whether HUD appropriately awarded 2009 set-aside fund awards for unforeseen circumstances and higher than average leasing. We found that HUD had already discovered it did not have accurate information about public housing agency net restricted assets and was taking appropriate steps to improve its controls. We also found that HUD did not ensure about $18,000 in set-aside funds was used for its intended purpose. HUD immediately resolved this discrepancy.

We recommend that the Office of Public Housing and Voucher programs (1) rectify the discrepancy for the award overpayment, (2) check the accuracy of other unforeseen circumstance awards made for similar tenant income reductions and rectify any discrepancies, and (3) correct the process for future similar awards.

HUD agreed with the recommendations and has already addressed them. Therefore, we will close the recommendations upon issuance of the report.