We audited the Hammond Housing Authority as part of our annual audit plan to review public housing programs. Our objective was to determine whether the Authority properly administered its U.S. Department of Housing and Urban Development (HUD) Section 8 Housing Choice Voucher program in accordance with HUD requirements.
While the Authority properly administered its waiting list and completed housing quality standards inspections at least biennially as required, it did not always ensure housing assistance payments were eligible and its participant files were supported. Specifically, the Authority did not always use the correct subsidy calculation, ensure a participant’s lease ran concurrently with the housing assistance payment contract, and maintain sufficient documentation to support a participant’s eligibility. Further, it did not administer its participant repayment agreements in accordance with requirements and properly use HUD’s systems. These conditions occurred because the Authority did not have adequate written policies and procedures, was not always aware of HUD requirements, and in one instance disregarded HUD requirements. As a result, it (1) overpaid $4,191; (2) could not support $6,720 in housing subsidy payments; (3) could not support that it used $23,463 in participant repayments correctly; (4) compromised the accuracy of HUD’s database; and (5) could not always provide HUD with reasonable assurance that it administered its program to prevent fraud, waste, and abuse.
We recommend that the Director of HUD’s New Orleans Office of Public Housing require the Authority to (1) reimburse its program $4,191 from non-Federal funds for ineligible housing subsidy payments, (2) support the eligibility of the participant or reimburse $6,720 in housing subsidy payments, (3) support that it correctly used $23,463 in participant repayments, and (4) revise or implement written procedures and controls to address the findings cited in this audit report.
Recommendations
Public and Indian Housing
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Status2017-FW-1005-001-AOpenClosed$4,191.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on August 02, 2017Repay its program from non-Federal funds $4,191 for ineligible housing subsidy overpayments.
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Status2017-FW-1005-001-BOpenClosed$6,720.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on August 02, 2017Support the eligibility of the participant or reimburse its program $6,720 from non-Federal funds for housing subsidy payments.
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Status2017-FW-1005-001-COpenClosed$23,463.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on May 02, 2018Support that it properly used the funds collected or repay its program $23,463 from non-Federal funds.
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Status2017-FW-1005-001-DOpenClosedClosed on November 16, 2017
Develop and implement controls to identify errors and ensure that housing assistance payments are correctly calculated and paid, leases run concurrently with the housing assistance payments contract, required eligibility documentation is maintained, rent reasonableness is completed before executing the housing assistance payments contract and lease, the correct utility allowance rate is used, and documentation to support completed background checks is maintained.
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Status2017-FW-1005-001-EOpenClosedClosed on May 02, 2018
Revise its written policies and procedures to ensure that it administers its participant repayment agreements in compliance with requirements.
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Status2017-FW-1005-001-FOpenClosedClosed on November 16, 2017
Ensure that it executes form HUD-52675 with all program participants and adult household members.
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Status2017-FW-1005-001-GOpenClosedClosed on November 16, 2017
Develop written policies and procedures, to include HUD’s requirements to (1) properly report participant data in the PIC system, (2) report repayments and debts owed in the EIV system, and (3) monitor EIV reports.
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Status2017-FW-1005-001-HOpenClosedClosed on November 16, 2017
Compare current participant and financial data to the EIV and PIC system data to ensure that all participant data were accurately submitted and reported.
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Status2017-FW-1005-001-IOpenClosedClosed on May 02, 2018
Revise its administrative plan to ensure that it accurately reflects current HUD requirements and the Authority’s current policies and procedures.
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Status2017-FW-1005-001-JOpenClosedClosed on May 02, 2018
Provide training to its staff to ensure that it is familiar with all HUD documentation and reporting requirements.