We audited the U.S. Department of Housing and Urban Development (HUD), Office of Public and Indian Housing, phase-down for demolition add-on funding (phase-down funding) calculations for the Public Housing Operating Fund program. We initiated the audit based on results of a prior audit that indicated the Office of Public and Indian Housing add to always obtain adequate supporting documentation for public housing agencies before approving requests for phase-down funding. Our objective was to determine whether the Office of Public and Indian Housing obtained and adequately reviewed the supporting documentation for the $74.3 million in approved phase-down funding for fiscal years 2004 and 2005.