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
Public and Indian Housing
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Status2018-PH-1001-001-AOpenClosed$4,920,685.00Questioned 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.
Closed on March 31, 2021Conduct 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.
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Status2018-PH-1001-001-BOpenClosedClosed on December 04, 2018
Develop and implement controls to ensure that criminal records checks are conducted, according to policy, at application and when family composition changes.
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Status2018-PH-1001-001-COpenClosed$19,520.00Questioned 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.
Closed on August 30, 2018Repay its program $19,520 from non-Federal funds for the ineligible housing assistance payments made.
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Status2018-PH-1001-001-DOpenClosedClosed on August 21, 2018
Correct the errors in the files of the noncitizen families identified by the audit.
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Status2018-PH-1001-001-EOpenClosedClosed on December 04, 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.
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Status2018-PH-1001-001-FOpenClosedClosed on December 04, 2018
Develop and implement controls to ensure that assistance is properly prorated for eligible family members of noncitizen students.
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Status2018-PH-1001-001-GOpenClosedClosed on August 30, 2018
Review the citizenship documentation for all adult household members residing in assisted housing and verify correct entry to applicable HUD systems.
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Status2018-PH-1001-001-HOpenClosedClosed on December 04, 2018
Correct the waiting list errors identified by the audit.
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Status2018-PH-1001-001-IOpenClosedClosed on December 21, 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.
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Status2018-PH-1001-001-JOpenClosedClosed on December 04, 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.
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Status2018-PH-1001-001-KOpenClosedClosed on December 04, 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.