We audited the Indianapolis Housing Agency’s Housing Choice Voucher program based on an anonymous complaint. The audit was part of the activities in our fiscal year 2018 audit plan. Our objective was specific to the allegations in the complaint and was to determine whether the Agency wrote off accounts receivable, deleted adjustments to accounts payable and receivable, and made adjustments to accounts payable and receivable associated with its program in accordance with the U.S. Department of Housing and Urban Development’s (HUD) regulations and its own requirements.
The Agency did not administer its program in accordance with HUD’s regulations and its own requirements. Specifically, the Agency could not provide sufficient documentation to support that it appropriately wrote off accounts receivable. Further, it could not always provide sufficient documentation to support that it appropriately deleted adjustments to accounts payable and receivable and made accounts payable and receivable adjustments. The Agency also improperly deleted adjustments to accounts payable for housing assistance payments to a landlord. As a result, the Agency and HUD lacked assurance that the Agency’s accounting entries were accurate and that the Agency appropriately wrote off nearly $200,000 in accounts receivable. Further, it failed to pay nearly $1,300 in housing assistance to a program landlord.
We recommend that the Director of HUD’s Indianapolis Office of Public Housing require the Agency to resolve the issues and implement adequate procedures and controls to address the weaknesses cited in this audit report. We also recommended that the Director request that HUD’s Quality Assurance Division continue reviewing the Agency’s (1) write off of accounts receivable, (2) deleted adjustments to accounts payable and receivable, and (3) adjustments to accounts payable and receivable as part of its financial and program management and operations review.
Recommendations
Public and Indian Housing
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Status2018-CH-1002-001-AOpenClosed$199,604.00Questioned 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 30, 2023Provide sufficient documentation to support that it disbursed the $199,604 in program funds, which it determined were inappropriate housing or utility assistance payments, and that it made a reasonable effort to collect the debts. If the Agency cannot provide sufficient documentation to support the disbursements and that the debts were uncollectable, it should reimburse its program from non-Federal funds as appropriate. If the Agency provides sufficient documentation to support the disbursements but cannot provide sufficient documentation to support that the debts were uncollectable, it should make a reasonable effort to collect from the debtors or reimburse its program from non-Federal funds as appropriate.
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Status2018-CH-1002-001-BOpenClosedClosed on January 21, 2020
Implement adequate procedures and controls to ensure that it maintains sufficient documentation to support housing and utility assistance payments and that it makes a reasonable effort to collect debts.
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Status2018-CH-1002-001-COpenClosedClosed on January 21, 2020
Implement adequate procedures and controls to ensure that it follows its bad debt writeoff policy when it writes off accounts receivable.
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Status2018-CH-1002-001-DOpenClosedClosed on February 10, 2020
Provide sufficient documentation to support that the two deleted adjustments to accounts payable and four deleted adjustments to accounts receivable were duplicate or incorrect adjustments that should have been deleted. If the Agency cannot do this, it should make the appropriate accounting entries and take the appropriate actions.
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Status2018-CH-1002-001-EOpenClosed$1,284.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on January 07, 2020Determine whether the tenant paid the landlord nearly $1,284 for housing assistance payments that the Agency did not make to the landlord. If the tenant paid the landlord, the Agency should make the appropriate accounting entries and reimburse the tenant from program funds. If the tenant did not pay the landlord, the Agency should reinstate the adjustments to accounts payable that were inappropriately deleted and pay the landlord from program funds.
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Status2018-CH-1002-001-FOpenClosedClosed on January 17, 2020
Provide sufficient documentation to support that an adjustment to accounts payable and five adjustments to accounts receivable were appropriate. If the Agency cannot do this, it should make the appropriate accounting entries and take the appropriate actions.
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Status2018-CH-1002-001-GOpenClosedClosed on February 21, 2020
Implement adequate procedures and controls to ensure that it deletes adjustments to accounts payable and receivable and makes adjustments to accounts payable and receivable in accordance with HUD’s regulations and its administrative plan.
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Status2018-CH-1002-001-HOpenClosedClosed on November 07, 2018
Request that HUD’s Quality Assurance Division continue reviewing the Agency’s (1) writeoff of accounts receivable, (2) deleted adjustments to accounts payable and receivable, and (3) adjustments to accounts payable and receivable as part of its financial and program management and operations review.