As part of our strategic plan objective to assist the U. S. Department of Housing and Urban Development's (HUD) efforts to reduce rental assistance overpayments, we audited the Dallas Housing Authority's (Authority) Housing Choice Voucher program (voucher program). Our objective was to determine whether the Authority properly administered its overall voucher program.

The Authority acknowledged its longstanding weaknesses, as previously reported by the Office of Inspector General (OIG), HUD, and prior independent public accountants, and made a commitment to improve its operations. Although the Authority reorganized its leased housing department and made other changes, it failed to correct systemic weaknesses and continued to mismanage its voucher program. Further, analysis of Authority data disclosed that it spent almost $20 million in questionable costs in 2006 and 2007. This amount included payments for clients that it did not report to HUD; payments for clients after they left its voucher program; duplicate payments to landlords; and payments for clients who, based on their reported Social Security numbers, were deceased. In addition, the Authority's data showed that it backdated 22 and 45 percent of the examinations it reported to HUD in 2006 and 2007, respectively.

We recommended that the Director of HUD's Recovery and Prevention Corps (Director) require the Authority to establish and implement: policies and procedures to address its systemic weaknesses, an effective quality control process, and an effective accountability process. We also recommend that the Director require the Authority to support or repay nearly $20 million. In addition, we recommend that the Director incorporate the recommendations in this report with the management decision and corrective actions for recommendation 1D of OIG audit report 2008-FW-1006.