We audited the Housing Authority of the City of New Haven’s Housing Choice Voucher program based on our risk assessment of the program for the New England region, the size of the Authority’s program, the time lapse since our last audit, and the inherent risk of the program. Our audit objective was to determine whether Authority officials only made eligible housing assistance payments.
Authority officials made $314,611 in ineligible housing assistance payments from the Housing Choice Voucher program, including $281,929 in retroactive payments and $32,682 in overpayments due to program errors. Specifically, Authority officials made ineligible retroactive payments using current-year housing assistance funding to pay for prior-year liabilities in violation of U.S. Department of Housing and Urban Development (HUD) regulations. In addition, Authority officials made ineligible housing assistance payments due to program errors, some of which included (1) late processing, (2) failure to notify program participants of housing assistance payment adjustments, (3) making housing assistance payments for the program participant’s portion of the rent, and (4) payments for vacated units. These deficiencies occurred because Authority officials believed the payments were an eligible use of program funds and they did not always follow HUD’s or their own requirements for administering the program. As a result, they made $314,611 in ineligible housing assistance payments, and HUD lacked assurance that program funds were used efficiently and effectively.
We recommend that HUD require Authority officials to (1) repay from non-Federal funds the $314,611 used for ineligible housing assistance, and (2) implement internal controls to comply with HUD’s and Authority requirements for administering the program.
Recommendations
Public and Indian Housing
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Status2018-BO-1002-001-AOpenClosed$281,929.00Questioned 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 15, 2018Repay the Housing Choice Voucher program from non-Federal funds the $281,929 in ineligible retroactive housing assistance payments.
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Status2018-BO-1002-001-BOpenClosedClosed on June 05, 2018
Develop and implement internal control procedures to ensure that housing assistance funds appropriated for 1 calendar year are not used to make retroactive housing assistance payments for prior years.
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Status2018-BO-1002-001-COpenClosed$32,682.00Questioned 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 April 17, 2018Repay the Housing Choice Voucher program from non-Federal funds the $32,682 in ineligible housing assistance overpayments made due to program errors.
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Status2018-BO-1002-001-DOpenClosedClosed on July 05, 2018
Develop and implement internal control procedures to ensure that housing assistance payments resulting from errors of Authority officials are covered by the Authority’s administrative fees.
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Status2018-BO-1002-001-EOpenClosedClosed on September 29, 2018
Develop and implement internal control procedures to ensure that housing assistance payments are not made to owners without a properly executed lease and housing assistance payments contract.
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Status2018-BO-1002-001-FOpenClosedClosed on September 28, 2018
Develop and implement internal controls to ensure that housing assistance payments discontinue once a program participant is absorbed into another public housing agency’s program or leaves the program.
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Status2018-BO-1002-001-GOpenClosedClosed on May 17, 2018
Provide support showing that the repayment of housing assistance overpayments found by the Authority were received.