We completed an audit of the Fayette County Housing Authority's Section 8 Housing Program.
The objective of our audit was to determine whether the Housing Authority operated its Section 8 Program in an efficient and effective manner and provided decent, safe and sanitary housing to its Section 8 tenants in compliance with HUD's requirements. We performed the audit in response to a request from HUD's Public Housing Program Center Coordinator, Indianapolis Field Office. The audit resulted in three findings.
In accordance with HUD Handbook 2000.06 REV-3, within 60 days please provide us, for each recommendation without a management decision, a status report on: (1) the corrective action taken;
(2) the proposed corrective action and the date to be completed; or (3) why action is considered unnecessary. Additional status reports are required at 90 days and 120 days after report issuance for any recommendation without a management decision. Also, please furnish us copies of any correspondence or directives issued because of the audit.
Should you or your staff have any questions, please contact Ronald Huritz, Assistant Regional Inspector General for Audit, at (312) 353-6236, extension 2675, or me at (312) 353-7832.
Recommendations
Public and Indian Housing
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Status2003-CH-1019-001-BOpenClosed$533,432.00Questioned 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.
Establishes a formal repayment agreement with the Housing Authority that will allow the current debt owed to HUD of $533,432 to be repaid without disrupting the Section 8 Program. The following should be included in the agreement: prior HUD approval of the Housing Authority's proposed budgets; and a requirement that the Housing Authority revise its funding requisitions when leasing levels materially change so that future overpayments will be avoided.
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Status2003-CH-1019-002-AOpenClosed$42,206.00Questioned 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.
Reimburses its Section 8 Voucher Program $42,206 from non-Federal funds for the ineligible costs cited in this finding.
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Status2003-CH-1019-002-BOpenClosed$1,672.00Questioned 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.
Provides documentation to support the $1,672 of unsupported payments cited in this finding. If documentation cannot be provided, then the Authority should reimburse its Section 8 Voucher Program from non-Federal funds for the amount that cannot be supported.