Irvington PHA Didn’t Always Follow Public Housing Program Requirements
HUD’s Office of Inspector General (OIG) audited the Housing Authority of the Township of Irvington, N.J., regarding the administration of its public housing program because it was classified as a troubled PHA and based on a complaint from the union representing its maintenance and clerical employees. The complaint alleged serious financial and operational mismanagement.
The audit found that the allegations in the complaint regarding serious financial and operational mismanagement were valid. Officials spent program funds for unsupported and ineligible costs, excessive compensation was provided to the former executive director, HUD wasn’t notified about litigations, deficiencies were noted in rent collection, program income was spent for ineligible and unsupported costs, and controls over procurement were inadequate. OIG attributed these deficiencies to the PHA officials’ unfamiliarity with program requirements, disregard for the financial condition of the PHA, and failure to establish a proper control environment. As a result, HUD had no assurance that $1.2 million in expenditures charged by the PHA was eligible and adequately supported.
Auditors recommended that HUD require PHA officials to reimburse the public housing program from nonfederal funds for $95,240 in ineligible expenditures, provide supporting documentation to justify $1.1 million in unsupported expenditures charged to the public housing program or repay the program from nonfederal funds, and establish adequate controls to ensure compliance with program requirements. They also recommended that the director of HUD’s Departmental Enforcement Center pursue administrative sanctions against any current or former PHA officials found to have spent public housing program funds for personal or unallowable use.
- HUD Audit 2017-NY-1008, March 2017