Based on a congressional request, we performed an audit of the Housing Authority City of El Paso's (Authority) procurement process and board of commissioners (board) activities. Our objectives were to determine whether the Authority properly followed procurement requirements and whether the executive director was selected in accordance with applicable procedures.

The Authority did not follow its procurement policies or the U. S. Department of Housing and Urban Development's (HUD) procurement requirements. Specifically, it inappropriately paid more than $700,000 because it did not properly administer its procurements. Also, a former board member and a former employee created conflicts of interest. Further, the Authority did not establish written procedures for the selection of its executive director, and its board members did not always file ethics questionnaires in a timely manner.

We recommended that the Authority repay from nonfederal funds $661,580 to its restricted operating reserve for locally owned properties account, $12,697 to HUD, and $31,640 to its capital fund account; implement procedures to ensure that it complies with its procurement policies and HUD regulations and requirements; and ensure that its executive director and its contracting department employees attend HUD-approved procurement training. Further, we recommended that the Director, Office of Public and Indian Housing, Fort Worth, take administrative or other actions regarding the conflicts of interest created by a former board vice-chair and a former employee.