We audited the Tarrytown Municipal Housing Authority’s administration of its public housing program based on an Office of Inspector General risk assessment. The objectives of the audit were to evaluate the Authority’s financial controls to determine whether (1) U.S. Department of Housing and Urban Development (HUD) funds were used for eligible, reasonable, and supported expenses and (2) adequate financial controls were maintained to ensure compliance with program regulations.
Authority officials did not properly document the procurement of $474,571 in goods and services. Specifically, the Authority did not prepare independent cost estimates, solicit price quotes, and maintain procurement file documentation. Other minor deficiencies were that the Authority did not prepare an approved statement of policies and procedures, document inspections before occupancy, properly document tenant employees, and develop a flat rent policy. We attributed these conditions to Authority officials’ lack of knowledge of Federal regulations and failure to implement and follow their own policies and procedures to properly administer the public housing program. As a result, Authority officials could not ensure that $474,571 in public housing funds was disbursed for eligible, reasonable, and supported expenses in compliance with applicable requirements and that adequate controls were maintained to ensure compliance with program regulations.
We recommend that the Director of HUD’s New York Office of Public Housing instruct Authority officials to (1) provide documentation showing that the $474,571 in identified procurements were reasonable and repay any amounts not supported from non-Federal funds, (2) adopt a HUD-approved procurement plan, (3) develop a HUD-approved statement of policies and procedures, (4) conduct unit inspections before occupancy, (5) obtain HUD’s approval for all Authority employees occupying public housing units, (6) accurately report those employees required to live in public housing as a condition of their job, and (7) develop a formal flat rent policy.