The Indianapolis Housing Agency, Indianapolis, IN, Did Not Always Comply With HUD’s Regulations and Its Own Requirements Regarding the Financial Administration of Its Housing Choice Voucher Program | Office of Inspector General, Department of Housing and Urban Development

August 01, 2018

Public and Indian Housing

2018-CH-1002

2018-CH-1002.pdf

We audited the Indianapolis Housing Agency’s Housing Choice Voucher program based on an anonymous complaint. The audit was part of the activities in our fiscal year 2018 audit plan. Our objective was specific to the allegations in the complaint and was to determine whether the Agency wrote off accounts receivable, deleted adjustments to accounts payable and receivable, and made adjustments to accounts payable and receivable associated with its program in accordance with the U.S. Department of Housing and Urban Development’s (HUD) regulations and its own requirements.

The Agency did not administer its program in accordance with HUD’s regulations and its own requirements. Specifically, the Agency could not provide sufficient documentation to support that it appropriately wrote off accounts receivable. Further, it could not always provide sufficient documentation to support that it appropriately deleted adjustments to accounts payable and receivable and made accounts payable and receivable adjustments. The Agency also improperly deleted adjustments to accounts payable for housing assistance payments to a landlord. As a result, the Agency and HUD lacked assurance that the Agency’s accounting entries were accurate and that the Agency appropriately wrote off nearly $200,000 in accounts receivable. Further, it failed to pay nearly $1,300 in housing assistance to a program landlord.

We recommend that the Director of HUD’s Indianapolis Office of Public Housing require the Agency to resolve the issues and implement adequate procedures and controls to address the weaknesses cited in this audit report. We also recommended that the Director request that HUD’s Quality Assurance Division continue reviewing the Agency’s (1) write off of accounts receivable, (2) deleted adjustments to accounts payable and receivable, and (3) adjustments to accounts payable and receivable as part of its financial and program management and operations review.

Recommendations

Recommendation	Status	Date Issued	Summary
2018-CH-1002-001-A	Closed	August 01, 2018	Provide sufficient documentation to support that it disbursed the $199,604 in program funds, which it determined were inappropriate housing or utility assistance payments, and that it made a reasonable effort to collect the debts. If the Agency cannot provide sufficient documentation to support the disbursements and that the debts were uncollectable, it should reimburse its program from non-Federal funds as appropriate. If the Agency provides sufficient documentation to support the disbursements but cannot provide sufficient documentation to support that the debts were uncollectable, it should make a reasonable effort to collect from the debtors or reimburse its program from non-Federal funds as appropriate.
2018-CH-1002-001-B	Closed	August 01, 2018	Implement adequate procedures and controls to ensure that it maintains sufficient documentation to support housing and utility assistance payments and that it makes a reasonable effort to collect debts.
2018-CH-1002-001-C	Closed	August 01, 2018	Implement adequate procedures and controls to ensure that it follows its bad debt writeoff policy when it writes off accounts receivable.
2018-CH-1002-001-D	Closed	August 01, 2018	Provide sufficient documentation to support that the two deleted adjustments to accounts payable and four deleted adjustments to accounts receivable were duplicate or incorrect adjustments that should have been deleted. If the Agency cannot do this, it should make the appropriate accounting entries and take the appropriate actions.
2018-CH-1002-001-E	Closed	August 01, 2018	Determine whether the tenant paid the landlord nearly $1,284 for housing assistance payments that the Agency did not make to the landlord. If the tenant paid the landlord, the Agency should make the appropriate accounting entries and reimburse the tenant from program funds. If the tenant did not pay the landlord, the Agency should reinstate the adjustments to accounts payable that were inappropriately deleted and pay the landlord from program funds.
2018-CH-1002-001-F	Closed	August 01, 2018	Provide sufficient documentation to support that an adjustment to accounts payable and five adjustments to accounts receivable were appropriate. If the Agency cannot do this, it should make the appropriate accounting entries and take the appropriate actions.
2018-CH-1002-001-G	Closed	August 01, 2018	Implement adequate procedures and controls to ensure that it deletes adjustments to accounts payable and receivable and makes adjustments to accounts payable and receivable in accordance with HUD’s regulations and its administrative plan.
2018-CH-1002-001-H	Closed	August 01, 2018	Request that HUD’s Quality Assurance Division continue reviewing the Agency’s (1) writeoff of accounts receivable, (2) deleted adjustments to accounts payable and receivable, and (3) adjustments to accounts payable and receivable as part of its financial and program management and operations review.