PHA Didn’t Always Comply with HUD’s Family Self-Sufficiency, Voucher Program Requirements

HUD’s Office of Inspector General (OIG) audited the Youngstown Metropolitan Housing Authority’s Housing Choice Voucher program. The audit’s objective was to determine whether the PHA appropriately managed its Family Self-Sufficiency program and Housing Choice Voucher program files in accordance with HUD and its own requirements.

The audit found the PHA failed to appropriately manage its Family Self-Sufficiency program. Specifically, it didn’t maintain consistent and reliable program information and required documentation that was complete and accurate and met HUD’s requirements. It also didn’t ensure that participants’ escrow accounts were correctly calculated and supported and that it maintained a separate bank account for its program participants’ escrow funds. Auditors concluded the weaknesses occurred because the PHA failed to implement adequate procedures and controls and did not ensure that its program coordinators had a sufficient understanding of HUD’s program requirements.

In addition, the PHA didn’t always comply with HUD’s and its own requirements for its Housing Choice Voucher program files. Specifically, it didn’t always correctly calculate and support housing assistance payments and perform household reexaminations in a timely manner. As a result, the PHA inappropriately paid nearly $32,000 and had nearly $2,000 in unsupported housing assistance payments. If the PHA doesn’t correct its certification process, it could overpay nearly $323,000 in housing assistance over the next year.

Auditors recommended that the Director of HUD’s Cleveland Office of Public and Indian Housing require the PHA to support or reimburse its programs from non-federal funds for escrow calculations and disbursements, coordinator grant funds, and housing assistance payments; reimburse its programs from non-federal funds for the ineligible escrow disbursements and housing assistance payments; ensure that program funds are used effectively; and implement adequate procedures and controls to correct the findings cited in this audit report.

• HUD Audit 2017-CH-1002, July 2017