We completed an audit of the Philadelphia Regional Alliance of HUD Tenants $310,000 Outreach and Training Assistance Grant and a $20,000 Public Entity Grant (a Section 514 grant received from an Intermediary Technical Assistance Grant). The objectives of the review were to determine if the Philadelphia Regional Alliance of HUD Tenants used Section 514 grant funds for only eligible activities as identified in the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA), their agreements, and/or other requirements to further the Mark-to-Market Program. Also we wanted to determine if the Philadelphia Regional Alliance of HUD Tenants expended Section 514 funds for any lobbying activities. MAHRA specifically identified lobbying as an ineligible activity.

The audit identified the grantee assisted ineligible projects, charged the grant $60,750 in unsupported expenditures, $23,422 in ineligible expenditures, and did not comply with other requirements under the Office of Management and Budget's (OMB) Circular A-122, Cost Principles for Non-Profit Organizations.

In addition, the grantee participated in lobbying activities, contrary to the enabling legislation and OMB Circular A-122. Our report contains eight recommendations to address the issues identified in the report and to strengthen the grantee's management controls.