We completed an audit of the Coshocton Metropolitan Housing Authority's Comprehensive Improvement Assistance Program for Fiscal Years 1997, 1998, and 1999. The audit of the Housing Authority's Program was conducted as part of a comprehensive review of the Authority. The comprehensive review was performed based upon a request from HUD's Columbus Field Office Coordinator of Public Housing Program Center.

The objectives of the audit were to: (1) determine whether the Housing Authority had adequate management controls for safeguarding cash, other monetary assets, and inventory; (2) review for indicators of possible waste, loss, and misuse of cash, other monetary assets, and inventory; and (3) assess the appropriateness of the Housing Authority's procurement process.

The audit identified that the Housing Authority did not: (1) ensure that $287,224 of Comprehensive Improvement Assistance Program funds were used according to HUD's regulations: (2) ensure that $36.408 of Program funds were used in accordance with its Board approved operating budget; (3) procure goods and services in accordance with HUD's regulations; and (4) perform contractor employee wage surveys for its Program. Our report contains three recommendations to address the issues identified in this audit.

In conducting the audit, we reviewed the Housing Authority's policies and procedures for the period January 1999 to April 2002. We also reviewed and evaluated the Authority's: management controls over the Comprehensive Improvement Assistance Program; reliability of computer-processed data; general ledgers; and the Independent Auditor's Report for July 1. 2000 to June 30, 2001. In addition, we reviewed: the Authority's records; HUD's records; bank statements; cancelled checks; 24 CFR Parts 85 and 968; and HUD Handbooks 4910.1 and 7485.2.

We interviewed the Housing Authority's and HUD's staff regarding the Authority's Comprehensive Improvement Assistance Program. A HUD Construction Analyst inspected a sample of 26 Public Housing units and the exterior of 19 buildings comprising the Authority's Meadows and North Meadows housing developments. Our audit covered the period January 1999 to April 2002. This period was adjusted as necessary. We performed our on-site audit work between March 2001 and May 2002.

We conducted the audit in accordance with Generally Accepted Government Auditing Standards.

In accordance with HUD Handbook 2000.06 REV-3, within 60 days please provide us, for each recommendation without a management decision, a status report on: (1) the corrective action taken; (2) the proposed corrective action and the date to be completed; or (3) why action 15 considered unnecessary. Additional status reports are required at 90 days and 120 days after report issuance for any recommendation without a management decision. Also, please furnish us copies of any correspondence or directives issued because of the audit.

Should you or your staff have any questions, please have them contact Ronald Fairell, Senior Auditor, at (614) 469-5737 extension 8279 or me at (312) 353-7832.