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 portability features of the Dallas Housing Authority's (Authority) Housing Choice Voucher program. Our objective was to determine whether the Authority administered portability in accordance with HUD requirements.

The Authority mismanaged its portable vouchers and failed to administer portability in accordance with HUD requirements. The Authority could not identify its portable families and attempted to collect portability payments from other housing authorities based on unreliable billing information. It did not timely or accurately bill other housing authorities or reconcile its accounts. Further, the Authority violated portability requirements by denying and discouraging families from porting into its Housing Choice Voucher program. This occurred because the Authority's management did not establish and implement the necessary controls, systems, and procedures needed to ensure accurate and responsible operation of its program.

We recommended that HUD require the Authority to (1) reconcile its portability accounts; (2) establish and implement necessary controls to ensure its program is operating in compliance with HUD requirements; (3) establish and implement controls to ensure that employees cannot manipulate accounting data; (4) repay administrative fees collected on its port Housing Choice Voucher program since it did not properly administer its program; and (5) repay $3.7 million that it inappropriately requested from HUD.