We audited the West New York Housing Authority’s American Recovery and Reinvestment Act Capital Fund program in support of the Office of Inspector General’s audit plan goal to oversee Recovery Act-funded activities. We selected the Authority based upon a risk analysis of authorities receiving Recovery Act capital funds administered through the U.S. Department of Housing and Urban Development’s (HUD) Newark, NJ, field office, which considered authorities’ funding and HUD’s risk analysis. The Authority received a moderate risk score of 57, ranking it 27th out of 107 authorities monitored by the field office. The audit objectives were to determine whether Authority officials obligated and expended their capital funds in accordance with the Recovery Act and HUD regulations and complied with Recovery Act reporting requirements.
Authority officials generally administered their Recovery Act capital fund program in accordance with the Recovery Act and HUD’s requirements. Specifically, funds were obligated and expended in a timely manner for eligible activities and supported with adequate documentation, and the Authority’s activities were reported in compliance with Recovery Act requirements. However, while costs were incurred for eligible activities, Authority officials misclassified $68,260 to the fees and costs budget line item as opposed to that of dwelling structures. This occurred because officials over-expended dwelling structures and did not request a budget revision from HUD.
We recommend that the Director of the HUD Newark Office of Public Housing instruct Authority officials to ensure their revised Actual Modernization Cost Certificate reflects the reclassification of $68,260 in accordance with its revised budget.