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We audited the Women’s Development Center’s administration of its Supportive Housing Program (SHP) with concentration on the transitional housing grants provided by the U.S. Department of Housing and Urban Development (HUD). Our review was initiated because of a referral from the Office of Inspector General’s (OIG) Office of Investigation due to concerns about the Center’s compliance with SHP requirements. Our overall objective was to determine whether the Center administered its SHP grants in compliance with HUD regulations. Specifically, we concentrated our review on determining whether the Center provided assistance to eligible participants and whether participants were charged rent in accordance with HUD rules and regulations.

All transitional housing participants whose cases we reviewed were eligible due to homelessness. However, the Center charged its participants incorrect rents in 11 of 14 cases reviewed. As a result, the 11 participants whose cases we reviewed were overcharged a total of $9,660 and undercharged a total of $3,532.

We recommend that the Acting Director, Office of Community Planning and Development, require that the Center (1) calculate the applicable resident rent for participants from 2008 through 2011; (2) attempt to find and reimburse or collect from participants the overpayment or underpayment of resident rent, including the $13,192 identified during the audit as funds to be put to better use; and (3) establish procedures to ensure that caseworkers follow HUD requirements for income verification and rent calculations.