At the request of HUD's Region X Office of Public Housing, we audited the Housing Authority of Douglas County, Oregon, (Authority) to determine whether the Authority procured goods and services in accordance with HUD regulations and its procurement policy, accounted for HUD funds in accordance with HUD's administrative requirements and managed its Housing Choice Voucher program in accordance with HUD regulations.

We found the Authority had internal control weaknesses that resulted in incomplete procurement documentation, inadequate source documentation, inaccurate housing assistance calculations and payments, and unallowable expenditures. The Authority spent more than $2,000 on charitable donations and social events that were unallowable. We recommend that the Region X Office of Public Housing require the Authority to implement procedures and processes to remedy the internal control weaknesses and to repay the ineligible expenditures from non-federal funds.