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The U.S. Department of Housing and Urban Development (HUD) - Office of Inspector General audited the Pineville Housing Authority in Pineville, MO’s participation in HUD’s Office of Public and Indian Housing programs.  Our audit objective was to determine whether the Authority operated its public housing program in accordance with HUD requirements.

The Authority did not operate its public housing program in accordance with HUD requirements.  Specifically, it did not properly procure $38,626 in goods and services, used $1,233 of public housing funds for ineligible expenses, could not support that it used $31,147 on allowable expenses, did not properly admit or recertify tenants, did not properly account for and report the fringe benefits it provided to employees, and did not maintain auditable books and records.

We recommend that HUD require the Authority to provide adequate documentation to support that the $38,626 spent for improperly procured goods and services was spent at the most competitive prices, repay its program $1,233 for ineligible expenses, provide adequate support that it spent $31,147 on allowable expenses, conduct a 100 percent review of its tenant files for compliance with requirements, implement appropriate inventory and records management systems, and account for and report all taxable income of its employees to the Internal Revenue Service.  We also recommend that HUD determine whether the Authority is capable of properly implementing HUD requirements and consider remedies to address the noncompliance with its annual contributions contract.