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The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General completed an audit of Windridge Apartments in Wichita, Kansas.  We selected Windridge Apartments based on a referral from the Region 7 Office of Multifamily Housing due to high tenant receivables and excessive travel expenses.  Our audit objectives were to determine whether Windridge Apartment Associates, L.P., (1) followed HUD rules and regulations when it procured products and services, (2) followed HUD rules and regulations and its own policies and procedures for rent collection, and (3) followed HUD rules and regulations when charging travel expenses to the operating account.

The property (1) did not obtain three written cost estimates for goods or services expected to exceed $10,000, (2) did not provide proper notice and start eviction procedures for nonpayment of rent, and (3) paid more than $39,000 in travel expenses for individuals not employed by the property.

We recommended that HUD require the property to provide cost justification for $200,362 spent on goods or services and have the management agent reimburse the property for $39,466 in ineligible travel expenses.