We audited the Slidell Housing Authority based upon our regional risk analysis and as part of our annual audit plan to review public housing agencies’ operations. Our overall objective was to determine whether the Authority operated its Section 8 Housing Choice Voucher program in accordance with the U.S. Department of Housing and Urban Development’s (HUD) requirements and its administrative plan. The subobjectives were to determine whether the Authority ensured that (1) program participants were eligible to participate in the program and (2) housing assistance payments were accurate.

While we did not identify any ineligible participants in our review of 14 sampled files, the Authority did not always operate its program in accordance with HUD’s requirements. Specifically, it (1) did not always maintain supporting documentation for or accurately calculate housing assistance payments, (2) had various documentation issues, (3) created a conflict of interest, and (4) did not process family members’ files appropriately. This condition occurred because the Authority did not always follow the requirements outlined by HUD and its administrative plan and did not ensure that (1) its staff was adequately trained and (2) its internal controls including its quality control procedures for the program were sufficient. As a result, the Authority incurred payment errors totaling $105,007. The payment errors include $35,460 in ineligible and $69,462 in unsupported payments and $85 in housing assistance underpayments.

We recommend that the Director of HUD’s New Orleans Office of Public Housing require the Authority to (1) repay $35,460 in ineligible costs to its program, (2) support or repay $69,462, (3) reimburse its program participants $85 for underpayments, (4) correct the deficiencies identified in the program participant files, (5) develop and implement proper internal controls including quality control procedures, and (6) provide training to Authority employees.