We recommend that the Director of HUD’s Newark Office of Public Housing require the Authority to update its policies and procedures to ensure that any additional payments made under interagency agreements for technical, administrative, maintenance, and redevelopment services are adequately supported prior to making payment and that these services are provided in accordance with applicable requirements.

We recommend that the Director of HUD’s Newark Office of Public Housing require the Authority to provide documentation to show that the $326,096 paid for goods and services was reasonable or reimburse its Operating and Capital Fund programs from non-Federal funds for any amount that it cannot support or that is not considered reasonable.

We recommend that the Director of HUD’s Newark Office of Public Housing require the Authority to provide documentation to show that it had valid contracts in place before disbursing $125,589 to three vendors or reimburse its Operating and Capital Fund programs from non-Federal funds for any amount that it cannot support.

We recommend that the Director of HUD’s Newark Office of Public Housing require the Authority to update its procurement policies and procedures to ensure compliance with HUD and Federal procurement requirements.

We recommend that the Director of HUD’s Newark Office of Public Housing require the Authority to provide documentation to support $100,496 in 2015 Capital Fund grant obligations that have already been disbursed or reimburse HUD from non-Federal funds for any amount it cannot support.

We recommend that the Director of HUD’s Newark Office of Public Housing require the Authority to provide documentation to support $18,913 in 2015 Capital Fund grant obligations that have not yet been disbursed or request that HUD recapture the funds in accordance with regulations at 24 CFR 905.306.

We recommend that the Director of HUD’s Newark Office of Public Housing require the Authority to improve its policies and procedures to ensure that capital funds are obligated in a timely manner and adequately supported.

We recommend that the Director of HUD’s Newark Office of Public Housing require the Authority to reimburse its Operating Fund from non-Federal funds for the $75,722 settlement payment made to the State of New Jersey.

Conduct criminal record background checks in accordance with its policies and procedures to ensure that adult members of households for whom the Authority made housing assistance payments totaling $4,920,685 were eligible to participate in the program or repay its program from non-Federal funds for any amount that it cannot support. If the participants are deemed ineligible, the Authority should follow applicable regulations to terminate or…

Develop and implement controls to ensure that criminal records checks are conducted, according to policy, at application and when family composition changes.

Repay its program $19,520 from non-Federal funds for the ineligible housing assistance payments made.

Correct the errors in the files of the noncitizen families identified by the audit.

Develop and implement controls to ensure that it follows policies and procedures found in its administrative plan for verification of citizenship or eligible noncitizen status.

Develop and implement controls to ensure that assistance is properly prorated for eligible family members of noncitizen students.

Review the citizenship documentation for all adult household members residing in assisted housing and verify correct entry to applicable HUD systems.

Correct the waiting list errors identified by the audit.

Develop and implement controls to ensure that it follows policies and procedures to award and verify preference points for program applicants as required by its administrative plan.

Train staff on the requirements for which it will develop and implement controls as a result of the recommendations made in this audit report.

Refer the Authority to the Office of Fair Housing and Equal Opportunity for a review of the Authority’s waiting list to ensure that all areas comply with HUD requirements.

The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.