We audited the Housing Choice Voucher program (Voucher program) at the Quincy Housing Authority (Authority) as part of our annual audit plan. Our efforts focused on whether the Authority (1) ensured that its Section 8 administrative plan met the requirements of 24 CFR (Code of Federal Regulations) 982.54, (2) adequately accounted for its indirect cost charges, (3) used Voucher program funds only for the administration of the program and whether interprogram fund transactions were properly accounted for and reported, (4) followed its procurement practices, and (5) ensured that travel incurred for the Voucher program was in accordance with U.S. Department of Housing and Urban Development (HUD) guidance.

The Authority generally administered the Voucher program efficiently and effectively and in compliance with its annual contributions contract and HUD regulations. Our review disclosed (1) that the Authority's Section 8 administrative plan met the requirements of 24 CFR 982.54, and (2) the Authority maintained proper support for its indirect allocation of administrative expenses. However, it did not (3) properly account for and report interprogram fund transactions between its federal and state programs, resulting in nearly $4.6 million in unsupported transactions being recorded in its program accounts; (4) provide support and justification for $426,052 in contracts to show that the contracts were properly documented; and (5) establish a reasonable travel policy to ensure that travelers submitted detailed travel expense vouchers.

We recommend that the Director of the Office of Public Housing, Boston hub, require the Authority to (1) provide support for nearly $4.6 million in interprogram fund transactions that are out of balance between federal and state programs and implement procedures for recording and reconciling interprogram transactions and correcting imbalances; (2) provide support and justification for $426,052 in contracts for financial advisory services, a fee accountant, inspection services, legal services, and payroll and landlord payment services or reimburse its operating funds from nonfederal funds for the applicable amounts; and (3) revise its travel policy and obtain approval of the policy from the Authority's board of commissioners.