We audited American Family Housing’s special needs assistance program funds due to a hotline complaint alleging that the nonprofit used program funds for hotels, spas, raises, and bonuses not related to the program.  Our objective was to determine whether the nonprofit administered its program funds in accordance with U.S. Department of Housing and Urban Development (HUD) requirements.

We determined that the hotline complaint allegations had no merit.  The nonprofit administered its program funds in accordance with HUD requirements for the expenses reviewed.  The program expenses reviewed were supported and eligible.