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.

Hotline

Report Fraud, Waste and Abuse
February 11, 2018
  • Public and Indian Housing
2018-PH-1001
2018-PH-1001.pdf

We audited the Fairmont-Morgantown Housing Authority’s Housing Choice Voucher program because (1) we received a complaint alleging that the Authority did not follow program requirements, (2) the Authority administered 1,117 vouchers and received more than $5.2 million in funding for fiscal year 2016, and (3) we had not audited its program.  Our audit objective was to determine whether the Authority adequately administered its Housing Choice Voucher program in compliance with U.S. Department of Housing and Urban Development (HUD) requirements regarding participant eligibility and applicant selection.  This is the first of two reports on the Authority’s program.

The Authority did not comply with HUD’s and its own requirements when administering its Housing Choice Voucher program.  Specifically, it (1) did not conduct criminal background checks of applicants and participants through State or local law enforcement or court records of the local jurisdiction, (2) made housing assistance payments for ineligible participants, (3) did not always obtain written citizenship declarations and properly report family citizenship status, and (4) did not maintain an accurate waiting list for applicant selection.  As a result, the Authority (1) made unsupported housing assistance payments totaling more than $4.9 million, (2) made ineligible housing assistance payments totaling $19,520, (3) did not maintain and report correct family citizenship status, and (4) did not treat program applicants fairly and consistently.  

We recommend that HUD require the Authority to (1) provide documentation to show that adult members of households for whom the Authority made housing assistance payments totaling more than $4.9 million were not engaged in drug-related or violent criminal activity or repay its program from non-Federal funds for any amounts it cannot support and if the participants are deemed ineligible, follow applicable regulations to terminate or modify assistance; (2) repay its program $19,520 from non-Federal funds for the ineligible housing assistance payments; (3) correct the errors identified by the audit; and (4) develop and implement controls to ensure that it follows policies and procedures required by its administrative plan.  We also recommend that the Director of HUD’s Baltimore Office of Public Housing refer the Authority to the Office of Fair Housing and Equal Opportunity for a review of the Authority’s waiting list to ensure that all areas comply with HUD requirements.   
 

Recommendations
Recommendation Status Date Issued Summary
2018-PH-1001-001-A Closed February 12, 2018 Conduct criminal record background checks in accordance with its policies and procedures to ensure that adult members of households for whom the Authority made housing assistance payments totaling $4,920,685 were eligible to participate in the program or repay its program from non-Federal funds for any amount that it cannot support. If the participants are deemed ineligible, the Authority should follow applicable regulations to terminate or modify assistance.
2018-PH-1001-001-B Closed February 12, 2018 Develop and implement controls to ensure that criminal records checks are conducted, according to policy, at application and when family composition changes.
2018-PH-1001-001-C Closed February 12, 2018 Repay its program $19,520 from non-Federal funds for the ineligible housing assistance payments made.
2018-PH-1001-001-D Closed February 12, 2018 Correct the errors in the files of the noncitizen families identified by the audit.
2018-PH-1001-001-E Closed February 12, 2018 Develop and implement controls to ensure that it follows policies and procedures found in its administrative plan for verification of citizenship or eligible noncitizen status.
2018-PH-1001-001-F Closed February 12, 2018 Develop and implement controls to ensure that assistance is properly prorated for eligible family members of noncitizen students.
2018-PH-1001-001-G Closed February 12, 2018 Review the citizenship documentation for all adult household members residing in assisted housing and verify correct entry to applicable HUD systems.
2018-PH-1001-001-H Closed February 12, 2018 Correct the waiting list errors identified by the audit.
2018-PH-1001-001-I Closed February 12, 2018 Develop and implement controls to ensure that it follows policies and procedures to award and verify preference points for program applicants as required by its administrative plan.
2018-PH-1001-001-J Closed February 12, 2018 Train staff on the requirements for which it will develop and implement controls as a result of the recommendations made in this audit report.
2018-PH-1001-001-K Closed February 12, 2018 Refer the Authority to the Office of Fair Housing and Equal Opportunity for a review of the Authority’s waiting list to ensure that all areas comply with HUD requirements.