We audited the Jefferson Metropolitan Housing Authority’s Section 8 Housing Choice Voucher program based on a request from the U.S. Department of Housing and Urban Development (HUD) and the activities included in our 2015 annual audit plan.  Our audit objectives were to determine whether the Authority (1) appropriately calculated housing assistance payments, (2) maintained required eligibility documentation to support the admission and continued occupancy of its program households, and (3) ensured that assisted units were affordable.

The Authority did not always ensure that its program files complied with HUD’s requirements and its own policies.  Specifically, it did not (1) correctly calculate housing assistance payments, (2) maintain required eligibility documentation, and (3) ensure that assisted units were affordable.  As a result of these weaknesses, HUD and the Authority lacked assurance that program funds were used appropriately. If the Authority does not correct its certification process, we estimate that it could overpay housing assistance by more than $100,000 over the next year.

We recommend that the Director of HUD’s Cleveland Office of Public and Indian Housing require the Authority to (1) reimburse its program more than $25,000 from non-Federal funds for the ineligible housing assistance payments, (2) support or reimburse its program more than $421,000 from non-Federal funds for the unsupported payments, (3) reimburse its households more than $5,400 for the underpayment of housing assistance, and (4) implement adequate procedures and controls to address the issues cited in this audit report.