In coordination with our Office of Investigations, we audited the Housing Authority of the City of Jasper, TX, because we received a complaint. The complainant’s allegations included the executive director’s misuse of Authority vehicles and other issues. Our audit objective was to determine whether the Authority operated its Public Housing programs in compliance with the U.S. Department of Housing and Urban Development’s (HUD) requirements.
The complaint had valid allegations. While the Authority properly administered its rental receipts and payroll for the months tested, it did not properly administer its public housing funds. The improper administration of funds occurred because the executive director did not understand or follow Federal and Authority requirements, and the board did not provide adequate oversight. As a result, the Authority paid $91,956 in questioned costs.
In addition, members of the Authority’s board of commissioners were not properly appointed in a timely manner. The untimely appointments occurred because the prior and current Mayor lacked knowledge about their responsibility to appoint commissioners. Thus, the board did not hold meetings as required and did not provide proper oversight of the Authority.
We recommend that the HUD Office of Public Housing require the Authority to support or repay questioned costs totaling $91,956. In addition, we recommend that the Departmental Enforcement Center take appropriate administrative sanctions and seek civil money penalties against the executive director. Further, we recommend that the Associate General Counsel for Program Enforcement determine legal sufficiency, and if legally sufficient, pursue remedies under the Program Fraud Civil Remedies Act against the executive director.
Recommendations
Public and Indian Housing
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Status2017-FW-1006-001-AOpenClosed$27,818.00Questioned 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 January 24, 2022Repay from nonfederal funds $27,818 to its Capital Funds program from non-Federal funds for the ineligible purchase of the truck and expenditure of 2013 funds before they were available.
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Status2017-FW-1006-001-BOpenClosed$7,446.00Questioned 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 29, 2018Repay from nonfederal funds its HUD programs $7,446 for the executive director’s personal use of the Authority’s equipment, and amend the executive director’s prior Internal Revenue Forms W-2 to include the annual personal use of $5,888 as income.
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Status2017-FW-1006-001-COpenClosed$4,739.00Questioned 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 July 20, 2020Repay from nonfederal funds its HUD programs $4,739 paid to its fee accountant, which had a conflict of interest with the executive director.
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Status2017-FW-1006-001-DOpenClosed$1,273.00Questioned 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 29, 2018Repay from nonfederal funds its HUD programs $1,273 lost on the conflict of interest sale of the Authority’s vehicle to the executive director’s daughter.
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Status2017-FW-1006-001-EOpenClosed$1,034.00Questioned 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 29, 2018Repay from nonfederal funds its HUD programs $1,034 for ineligible charges on the Authority’s credit cards.
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Status2017-FW-1006-001-FOpenClosed$652.00Questioned 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 29, 2018Support or repay from nonfederal funds its HUD programs $652 for unsupported charges on the Authority’s credit card.
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Status2017-FW-1006-001-GOpenClosed$4,000.00Questioned 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 29, 2018Repay from nonfederal funds its HUD programs $4,000 paid for an ineligible 2011 training conference.
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Status2017-FW-1006-001-HOpenClosed$44,994.00Questioned 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 September 04, 2018Provide support for the reasonableness of the unit repairs costs totaling $44,994 and repay from nonfederal funds any unsupported or unreasonable amount.
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Status2017-FW-1006-001-IOpenClosedClosed on June 20, 2018
Provide training for the Authority’s commissioners on their responsibilities and duties.
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Status2017-FW-1006-001-JOpenClosedClosed on June 11, 2018
Require the Authority to update its policies and procedures so that they contain current Federal guidance.
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Status2017-FW-1006-002-AOpenClosedClosed on June 20, 2018
Provide technical assistance to the Mayor and the board concerning their responsibilities regarding the Authority.
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Status2017-FW-1006-002-BOpenClosedClosed on June 20, 2018
Monitor the Authority to ensure it is holding its board meetings, as required by its bylaws.
General Counsel
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Status2017-FW-1006-001-KOpenClosedClosed on August 27, 2019
We recommend that the Director, Departmental Enforcement Center take appropriate administrative sanctions, including suspension, limited denial of participation, or debarment against the executive director.
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Status2017-FW-1006-001-LOpenClosedClosed on August 21, 2017
We recommend that the Director, Departmental Enforcement Center seek civil money penalties, as appropriate, against the executive director.
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Status2017-FW-1006-001-MOpenClosed$10,000.00Questioned 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 July 02, 2020We recommend that the Associate General Counsel for Program Enforcement determine legal sufficiency and, if legally sufficient, pursue remedies under the Program Fraud Civil Remedies Act against the executive director.