The U.S. Department of Housing and Urban Development (HUD) – Office of Inspector General audited the Fairmont Housing Authority in Fairmont, NE, regarding its procurement and expenditures for its HUD, Office of Public and Indian Housing programs. Our audit objective was to determine whether the Authority followed HUD rules and regulations and its own policies and procedures for procurement and expenditures.
The Authority did not properly procure the company that provided both executive director and fee accounting services or the cost to prepare the agency plans paid to the fee accountant. Additionally, it did not require contractors to comply with contract provisions. Lastly, the Authority spent $1,485 of its capital funds for ineligible expenses.
We recommend the Authority (1) reprocure its executive director and fee accounting services using the appropriate policies and procedures to justify the amount spent on these services during our audit period, (2) justify the unsupported expenses, (3) collect ineligible expenses and repay its Capital Fund program, and (4) develop and implement policies and procedures to address the deficiencies noted.