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Hotline

Report Fraud, Waste and Abuse
April 22, 2004
  • Public and Indian Housing
2004-AT-1006
2004-AT-1006.pdf

Our review identified several conditions regarding the use of HUD funds that were in violation of the ACC. As of September 30, 2003, PRPHA accounting records reflected net account receivables owed to its Low-Income Public Housing Program exceeding $5.97 million. Review of these receivables disclosed that the PRPHA:

  • Improperly used HUD funds totaling about $1.1 million for activities not related to the administration of its public housing projects, and
  • Did not provide support for $4.23 million owed to its public housing program by the Puerto Rico Public Buildings Authority (PBA), and its public housing management agents.

We recommend that you require the PRPHA to reimburse $1.1 million to the ACC projects, from non-Federal funds, for ineligible expenses not related to the operation of its housing projects. We also recommend that you require the PRPHA to submit all supporting documentation and determine the accuracy of the $4.23 million owed by the PBA and its management agents. Any amounts determined ineligible must be reimbursed to the ACC projects from non-Federal funds. Further, we recommend that you require the PRPHA to establish and implement policies and procedures to ensure that grant funds are used solely for authorized purposes. In addition, we recommend your office work with the PRPHA to identify and refer the officials responsible for the mismanagement of HUD funds to the Departmental Enforcement Center (DEC).

Recommendations

Public and Indian Housing

  •  
    Status
      Open
      Closed
    2004-AT-1006-001-B
    $4,230,646.00
    Questioned 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.

    Require the PRPHA to submit all supporting documentation and determine the accuracy of the $4,230,646 owed by PBA and its public housing management agents. Any amounts determined ineligible must be reimbursed to the ACC projects, from non-Federal funds.