U.S. flag

An official website of the United States government Here’s how you know

The .gov means it’s official.

Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

The site is secure.

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Document

We audited the Housing Authority of DeKalb County’s Rental Assistance Demonstration (RAD) conversion and Public Housing Capital Fund program.  We selected the Authority for review in accordance with our annual audit plan.  Our audit objective was to determine whether the Authority properly administered its RAD conversion and obligated and authorized capital funds in accordance with the U.S. Department of Housing and Urban Development’s requirements. 

The Authority generally administered its RAD conversion in accordance with HUD’s requirements for written agreements, project financing sources, reporting of financial data, the expenditure of HUD funding, tenant occupancy, the calculation of contract rents, and physical conditions assessments.  However, the Authority failed to accurately report on the obligation and authorization of its capital funds.  Specifically, it inaccurately reported its fiscal year 2015 capital funds as obligated when binding agreements were not executed and caused some of its fiscal year 2016 capital funds to be authorized for a previously completed activity.  This condition occurred because the Authority lacked (1) an understanding of HUD’s requirements and (2) adequate internal controls over its financial reporting.  As a result, more than $940,000 in capital funds was improperly obligated and authorized.

We recommend that the Director of HUD’s Atlanta Office of Public and Indian Housing require the Authority to (1) deobligate more than $542,000 in capital funds until binding agreements are executed and reclassify more than $398,000 in capital funds for eligible and reasonable activities, or coordinate with HUD for terminating its capital funds including more than $217,000 of its current allocation, (2) provide adequate training to its staff, and (3) develop and implement adequate procedures and controls to ensure accurate reporting on capital funds.  In addition, we recommend the Authority confirm the replacement of program units was appropriate for the number of units demolished at Johnson Ferry East, and submit a development proposal to construct new public housing units, transfer public housing assistance to another public housing agency, or terminate its annual contributions contract and return all unobligated and unexpended capital funds to HUD.

Recommendations

Key Details
(mouse over or click items for details)
  Open
  Closed
Funds Put to Better Use
Funds Put to Better Use

Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

Questioned Costs
Questioned Costs

Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

Sensitive
Sensitive

Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.

Priority
Priority

We believe these open recommendations, if implemented, will have the greatest impact on helping HUD achieve its mission to create strong, sustainable, inclusive communities and quality affordable homes for all.

Public and Indian Housing

  •   2017-AT-1006-002-A
    $542,289.00

    Closed on Marzo 11, 2019

    Deobligate $542,289 in fiscal year 2015 capital funds in HUD’s system until binding agreements are executed for eligible and reasonable purposes, or coordinate with HUD for terminating its funding.

  •   2017-AT-1006-002-B
    $398,022.00

    Closed on Marzo 22, 2019

    Reclassify $398,022 in fiscal year 2016 capital funds as authorized in HUD’s system to an eligible and reasonable activity, or coordinate with HUD for terminating its funding.

  •   2017-AT-1006-002-C
    $217,553.00

    Closed on Marzo 22, 2019

    Coordinate with HUD for terminating the allocation of the remaining $217,553 funds given the Authority’s current intentions to not build or purchase public housing units.

  •   2017-AT-1006-002-D

    Closed on Octubre 03, 2017

    Develop and implement adequate procedures and controls to ensure that the reporting of allocated capital funds in HUD’s system is accurate.

  •   2017-AT-1006-002-E

    Closed on Octubre 03, 2017

    Provide adequate training to staff responsible for making entries into HUD’s system to ensure accurate reporting on allocated funds. The training should include but not be limited to ensuring that its staff understands all of HUD’s reporting requirements for obligations and authorizations.

  •   2017-AT-1006-002-F

    Closed on Marzo 11, 2019

    Confirm the replacement of program units was appropriate for the number of units demolished at Johnson Ferry East, and submit a development proposal to construct new public housing units, transfer public housing assistance to another public housing agency, or terminate its annual contributions contract and return all unobligated and unexpended capital funds to HUD.