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used low-rent public housing funds to pay expenses of its other HUD and non-
HUD programs and did not settle the $246,254 balance due to the low-rent public
housing fund in a timely manner. It also did not always record financial
transactions on its books in a timely manner. Additionally, contrary to federal
procurement regulations and its own procurement policy, the Authority did not
always adequately justify awarding contracts. These problems occurred because
the Authority did not have internal controls requiring it to reconcile and settle its
accounts monthly and ensure that it recorded financial transactions on its books in
a timely manner. Further, the Authority鈥檚 staff did not follow its established
procurement policy and was unaware of pertinent requirements.
What We Recommend
We recommend that HUD direct the Authority to repay its low-rent public
housing fund $246,254 owed by its other HUD and non-HUD programs and
create and implement policies and procedures to ensure that all transactions are
recorded on the books in a timely manner and that the due-to/due-from account is
reconciled and settled monthly, thereby putting $489,522 in public housing funds
to better use over a one-year period. Further, we recommend that the Authority
develop and implement procedures to ensure that it properly awards contracts
according to established policies and procedures and emphasize to responsible
personnel the need to follow applicable policies and procedures and provide them
training regarding federal procurement requirements.
For each recommendation without a management decision, please respond and
provide status reports in accordance with HUD Handbook 2000.06, REV-3.
Please furnish us copies of any correspondence or directives issued because of the
audit.
Auditee鈥檚 Response
We discussed the report with the Authority during the audit and at an exit
conference on February 1, 2007. The Authority provided written comments to
our draft report on February 8, 2007. The Authority agreed with the audit report
and began taking corrective actions to satisfy our recommendations. The
complete text of the Authority鈥檚 response, without attachments, can be found in
appendix B of this report. Copies of the attachments are available upon request.
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