We audited the Housing Choice Voucher program at the Fall River Housing Authority as part of our annual audit plan. The overall objective of the audit was to determine whether the Authority efficiently and effectively administered its Voucher program in compliance with its annual contributions contracts and U.S. Department of Housing and Urban Development (HUD) regulations. Our specific subobjectives were to determine whether (1) the Authority performed its housing quality standards inspections in a timely manner and adequately monitored its contract inspectors, (2) housing units met Voucher program housing quality standards and rents were properly abated if necessary, (3) the Authority complied with HUD procurement regulations and its own procurement policy, and (4) the Authority ensured that travel incurred for its Federal programs was in accordance with HUD regulations.
The Authority generally administered the Voucher program efficiently and effectively and in compliance with its annual contributions contract and HUD regulations. However, it did not always perform its housing quality standards inspections in a timely manner, adequately monitor the results of its contract inspectors, and properly abate rents if necessary. Thirty-eight housing quality standards inspections were late and clearly outside the timeframes required by HUD under the Authority’s third-party inspection contract. As a result, the Authority did not earn a portion of the $7,453 in paid administrative fees, did not always comply with HUD procurement regulations and its own procurement policy, and did not ensure that travel incurred for Federal programs was in accordance with HUD regulations.
We recommend that the Director of the Office of Public Housing, Boston hub, require the Authority to (1) repay a portion of the unearned $7,453 in administrative fees paid by HUD and document the results of the remaining 17 housing quality standards inspections to determine whether rents needed to be abated;(2) update delegation and procurement policy to include duties assign and delegated, maintain a Voucher program contract register, develop procedures to ensure that a cost benefit analysis is conducted and documented, and document the method for conducting technical evaluations of bid responses and proposals; and (3) revise its travel policy and obtain approval of the policy from the Authority’s board of commissioners.