We audited the Housing Choice Voucher (Voucher) program at the Taunton Housing Authority (Authority) as part of our annual audit plan. The overall audit objective was to determine whether the Authority efficiently administered its Voucher program in compliance with its annual contributions contract and U.S. Department of Housing and Urban Development (HUD) regulations. Our specific objectives were to determine whether the Authority used Voucher program funds only for the administration of the program and whether interprogram fund transactions were properly accounted for and reported.

The Authority generally administered the Voucher program efficiently and effectively and in compliance with its annual contributions contract and HUD regulations. However, it could not readily identify whether Voucher program funds were used only for the administration of the program because it did not properly account for and report interprogram fund transactions. The Authority did not properly account for and report interprogram fund transactions between its federal and state programs, resulting in $593,418 in unsupported transactions recorded in its program accounts.

We recommend that HUD require the Authority to provide support for $593,418 in interprogram fund transactions that were out of balance between federal and state programs and implement procedures for recording and reconciling interprogram transactions and correcting imbalances. We also recommend that HUD require the Authority to establish controls to ensure that all interprogram transactions are recorded and reconciled monthly. inspections are properly performed and supported by adequate documentation.