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We audited the Brown County Housing Authority’s Section 8 Housing Choice Voucher program based on our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction  and the activities included in our fiscal year 2015 annual audit plan.  Our audit objectives were to determine whether the Authority (1) appropriately calculated housing assistance payments and (2) maintained required eligibility documentation to support the admission and continued occupancy of its program households.

The Authority did not always ensure that its program files complied with the U.S. Department of Housing and Urban Development’s (HUD) and its own policies.  Specifically, it did not ensure that its contractor (1) correctly calculated housing assistance payments and (2) maintained required household eligibility documentation.  As a result of these weaknesses, HUD and the Authority lacked assurance that program funds were used appropriately.

We recommend that the program center coordinator of HUD’s Milwaukee public housing program center require the Authority to (1) reimburse its program more than $5,300 from non-Federal funds for the ineligible housing assistance payments, (2) support or reimburse its program nearly $49,000 from non-Federal funds for the unsupported payments, (3) reimburse its households more than $2,400 for the underpayment of housing assistance, and (4) implement adequate procedures and controls to address the issues cited in this audit report.