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We reviewed the City of Brackettville Housing Authority, Brackettville, TX. The review was part of a joint initiative between the HUD Office of Inspector General’s (OIG) Office of Audit and Office of Investigation. We completed the review and referred the former executive director’s improper use of Authority funds for personal expenses to HUD’s Office of Program Enforcement for action under the Program Civil Fraud Remedies Act of 1986.

On January 6, 2016, the Office of Program Enforcement filed a complaint against the former executive director of the Authority with the Office of Hearings and Appeals. The action centered on improper use of Authority funds for personal expenses. During the former executive director’s tenure, the Authority paid for a mobile phone for her husband. Additionally, the Authority paid for fuel when Authority employees were on personal leave and for decorative candles. The total amount of inappropriate expenditures was $1,854. All of these issues were violations of government procurement regulations covered by the annual contributions contract between HUD and the Authority. To arrive at a mutually satisfactory resolution of the matter and without the expense and uncertainty of further litigation, the former executive director agreed to pay HUD $5,000. The settlement agreement did not constitute an admission of liability or fault on the part of either party.