We completed a review of the New Rochelle Municipal Housing Authority’s administration of its public housing program. We selected the Authority based on a management request from the U.S. Department of Housing and Urban Development’s (HUD) New York Office of Public Housing. The Authority was designated as a troubled housing authority and had indicators of noncompliance with program requirements, such as using program funds to pay for ineligible expenses. The objective of the audit was to determine whether the Authority administered its public housing program in accordance with HUD’s rules and regulations.
Our review determined that the Authority did not always administer its public housing program in accordance with HUD’s rules and regulations. Specifically, Authority officials charged questionable expenditures to the program. We attributed these deficiencies to the Authority officials’ failure to establish and implement adequate financial controls to ensure compliance with applicable regulations. As a result, HUD had no assurance that $28,349 in expenditures charged by the Authority was eligible and adequately supported.
We recommend that HUD require Authority officials to (1) reimburse the public housing program from non-Federal funds for $15,020 in ineligible expenditures for executive staff travel, staff vacation compensation, food and beverages, and musical entertainment; (2) provide supporting documentation to justify the $13,329 in unsupported expenditures charged to the public housing program; and (3) implement procedures and effective financial controls to ensure that all disbursements charged to the public housing program are eligible and adequately supported.
Recommendations
Public and Indian Housing
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Status2017-NY-1006-001-AOpenClosed$15,020.00Questioned 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 March 02, 2020We recommend that the Director of HUD’s New York Office of Public Housing require Authority officials to reimburse the public housing program from non-Federal funds for $15,020 in ineligible expenditures for executive staff travel, food, beverages, and musical entertainment.
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Status2017-NY-1006-001-BOpenClosed$13,329.00Questioned 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 September 21, 2021We recommend that the Director of HUD’s New York Office of Public Housing require Authority officials to provide supporting documentation to justify the $13,329 in unsupported expenditures charged to the public housing program. Any amount determined to be ineligible should be repaid from non-Federal funds to the public housing program’s operating account.
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Status2017-NY-1006-001-COpenClosedClosed on March 26, 2020
We recommend that the Director of HUD’s New York Office of Public Housing require Authority officials to establish and implement procedures and effective financial controls to ensure that costs charged to the public housing program are properly incurred and comply with applicable regulations.