We audited the U.S. Department of Housing and Urban Development’s (HUD) Inventory Management System-Public and Indian Housing Information Center (IMS/PIC) inventory data related to public housing demolition and disposition projects.  The objective of the audit was to determine whether HUD adequately monitored the demolition and disposition projects to ensure the reliability of IMS/PIC inventory data and awarded appropriate Capital Fund program funding related to these projects.

HUD’s process for monitoring public housing authority (PHA) units approved for demolition and disposition was not always adequate to ensure that IMS/PIC data was accurate.  We attribute this condition to a lack of standardized field office procedures, inadequate guidance to PHA officials for reporting the status of their demolition and disposition projects, and HUD’s failure to correct PHA-reported unit inventory errors in a timely manner.  Consequently, HUD field office staff was not always aware of the status of PHA demolition and disposition projects, IMS/PIC did not always have up-to-date information on PHA units approved for demolition and disposition, and HUD officials did not identify that some PHAs incorrectly certified the number of their standing units, resulting in 8 of the 14 PHAs reviewed overstating the number of units eligible for Capital Fund program funding and receiving $554,714 to which they were not entitled.

We recommend that HUD officials (1) clarify guidance to public housing authorities (PHA) for reporting on the status of demolition and disposition projects and updating inventory data in IMS/PIC upon the completion of the projects, (2) strengthen controls in IMS/PIC to ensure that HUD field offices have adequate information to monitor the projects and related inventory data, (3) strengthen controls to ensure that reported data errors are adequately resolved, and (4) establish procedures to ensure field offices properly monitor the projects and determine if PHA-certified inventory data is accurate.