We audited the Housing Authority of the County of Los Angeles’ (Authority) Section 8 Housing Choice Voucher program. Our objective was to determine whether the Authority determined tenant eligibility and performed annual reexaminations in accordance with HUD rules and regulations. Although we did not identify any tenants that were not eligible for the program, the Authority did not comply with HUD’s requirements or its own administrative plan in performing reexaminations. It incorrectly calculated housing assistance payments, did not complete tenant reexaminations in a timely manner, and improperly changed reexamination due dates. As a result, the Authority made improper and unsupported housing assistance payments, collected unearned administrative fees in excess of $3.6 million between 2005 and 2006, and continued to put its program at risk. We recommend that HUD direct the Los Angeles County Board of Supervisors to replace the executive director and hire a new Assisted Housing Division director. We also recommend that HUD withhold 10 percent of the Authority’s future administrative fees until it properly implements its new computer system; direct the Authority to reimburse HUD $3.6 million in fiscal year 2005 and 2006 administrative fees; and require the Authority to reimburse overpayments of $33,464 from nonfederal funds, reimburse tenants $2,838 for underpayments, and provide support or reimburse the program $5,860 for unsupported costs.