District of Columbia Audit Reports

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Issue Date: December 23, 2010
Audit Report No.: 2011-PH-1005
File Size: 792KB

Title: The District of Columbia, Washington DC, Did Not Administer Its HOME Program in Accordance With Federal Requirements

We audited the District of Columbia's (grantee) administration of its HOME Investment Partnerships program (HOME) at the request of the U.S. Department of Housing and Urban Development's (HUD) Office of Affordable Housing. This is our second and final of two reports issued in relation to the grantee's administration of its HOME program. The objective addressed in this report was to determine whether the grantee properly administered its HOME program by providing home ownership and rehabilitation assistance in accordance with Federal requirements, ensuring that its Community Housing Development Organizations (CHDO) were eligible and complied with HOME program requirements, and implementing sufficient controls over the receipt and expenditure of HOME funds.

The grantee did not administer its HOME program in accordance with Federal requirements. It (1) obligated more than $2.5 million in HOME funds for an activity/project that was significantly delayed and not completed, (2) did not properly manage funds that it drew for downpayment assistance and financing of home repairs, (3) committed and disbursed CHDO operating funds for an ineligible CHDO, and (4) did not properly account for program administrative funds. These deficiencies occurred because the grantee did not have and/or implement sufficient procedures to ensure that it complied with program requirements. As a result, it charged more than $1.6 million in ineligible costs to its HOME program and could not support approximately $6.5 million in costs charged to the program. The grantee also accumulated more than $1.5 million in funds that it could have used to improve its administration of its HOME program and/or fund additional eligible HOME projects.

We recommend that the Director of HUD's Washington, DC, Office of Community Planning and Development require the grantee to recover more than $1.6 million that it spent on ineligible expenses and provide support for approximately $6.5 million in expenses or repay that amount to the HOME program. In addition, the grantee should use approximately $1.6 million in accumulated funds to improve its administration of the program and/or fund additional eligible HOME projects. Lastly, we recommend that the grantee create and implement procedures to ensure that HOME funds are disbursed and used in compliance with applicable requirements.

Issue Date: May 11, 2010
Audit Report No.: 2010-PH-1008
File Size: 1MB

Title: Sasha Bruce Youthwork, Incorporated, Washington, DC, Did Not Support More Than $1.9 Million in Expenditures

We audited Sasha Bruce Youthwork, Incorporated (Youthwork, Inc.) to determine whether it used its Youthbuild and Supportive Housing program grant funds in accordance with U.S. Department of Housing and Urban Development (HUD) regulations and its grant agreements. We found that Youthwork, Inc., did not support the eligibility of more than $1.9 million in expenditures. Youthwork, Inc., failed to maintain records identifying the source and application of funds for its HUD-sponsored activities as required by HUD regulations and its grant agreements. Its accounting system did not separately track expenses paid by HUD versus expenses paid through other funding sources. This condition occurred because responsible officials disregarded HUD requirements. Therefore, HUD had no assurance that $1.9 million in grant funds it disbursed to Youthwork, Inc., were used for eligible activities that met the intent of its grant agreements.

We recommend that the Director of HUD's Office of Community Planning and Development, Washington, DC, field office evaluate the issues in this report and if appropriate initiate appropriate administrative actions against responsible officials of Youthwork, Inc. We also recommend that the Director of HUD's Office of Community Planning and Development require Youthwork Inc., to provide documentation to demonstrate that more than $1.9 million was used for eligible activities or repay HUD from non-Federal funds, improve its financial management system and implement improved accounting procedures to ensure that it meets the requirements of regulations at 24 CFR (Code of Federal Regulations) 84.21 and Office of Management and Budget Circular (OMB) A-110. At a minimum, the financial management system should maintain accounting records that (1) track expenses paid by HUD versus expenses paid through other funding sources; (2) demonstrate that expenditures paid were for eligible activities; (3) determine and adequately document the reasonableness, allocability, and allowability of costs; and (4) demonstrate that expenditures meet HUD-approved budget line items, thereby ensuring that more than $686,342 in program funds will be used for eligible purposes.

Issue Date: February 25, 2010
Audit Report No.: 2010-PH-1802
File Size: 437KB

Title: District of Columbia - HOME Funds Provided to Developer H.R. Crawford for Parkside Terrace Apartments

We completed a review of the District of Columbia's (grantee) administration of HOME Investment Partnerships Program (HOME) funds that it provided to CEMI-Parkside Associates, LLP (Parkside Associates), a limited partnership managed by developer H.R. Crawford. The funds were provided for the rehabilitation/construction of a high rise property known as Parkside Terrace Apartments (Parkside Terrace). We initiated the review in response to a recommendation from HUD's Office of Affordable Housing. This is the first of two reports to be issued in relation to the grantee's administration of its HOME program. The objective addressed in this memorandum report was to determine whether the grantee properly accounted for HOME funds it provided for the rehabilitation/construction of Parkside Terrace.

The grantee properly accounted for ineligible HOME funds it provided for the rehabilitation/construction of Parkside Terrace. However, it needs to formalize its procedures for monitoring HOME-funded project activities to ensure that HOME funds are used in accordance with all program requirements.

We recommend that HUD require the grantee to formalize and implement adequate procedures to ensure that its HOME funds are used in accordance with program requirements.

Issue Date: July 30, 2008
Audit Report No.: 2008-PH-1010
File Size: 454.38KB

Title: The District of Columbia Housing Authority, Washington, DC, Did Not Implement Effective Controls for Its Leased Housing under its Moving to Work Program

We audited the District of Columbia Housing Authority's (Authority) controls over its leased housing under its Moving to Work Demonstration program based on our analysis of various risk factors relating to the housing authorities under the jurisdiction of the U.S. Department of Housing and Urban Development's (HUD) Baltimore field office. This is the third of three audit reports on the Authority's program. The audit objectives addressed in this report were to determine whether the Authority implemented adequate controls to prevent overhousing, ensured that it made assistance payments only for the time period that families resided in units, and effectively implemented a family self-sufficiency program.

The Authority had not implemented adequate controls to prevent overhousing and prevent it from making assistance payments for vacant units and had not effectively implemented a family self-sufficiency program. The Authority paid for 194 families to live in larger housing units than its policy allowed. As a result, it made excessive housing assistance payments totaling $42,955 monthly. In addition, it made ineligible housing assistance payments totaling $322,389 for vacant units. During the audit, the Authority recovered $278,561 of the $322,389 in ineligible payments. It needs to recover the remaining $43,828 in housing assistance payments related to these units. Further, the Authority did not operate its family self-sufficiency program according to HUD requirements. As a result, it made ineligible and unsupported payments to participants' escrow accounts totaling $44,702 and did not make contributions of more than $8,900 to the escrow account for one participant.

We recommend that the Director of HUD's Baltimore Public Housing Program Hub require the Authority to reimburse the applicable programs for its improper use of more than $80,000 in funds, provide documentation or reimburse the applicable program more than $51,000 for the unsupported payments cited in this audit report, and implement adequate procedures and controls to address the findings cited in this audit report to prevent the Authority from spending more than $426,000 in program funds for overhoused tenants. We also recommend that the Director of HUD's Baltimore Public Housing Program Hub verify that the Authority contributed more than $8,900 to the family self-sufficiency escrow account for one participant.

Issue Date: November 5, 2007
Audit Report No.: 2008-PH-1001
File Size: 1.57MB

Title: The District of Columbia Housing Authority, Washington, DC, Did Not Ensure That Its Program Units Met Housing Quality Standards under Its Moving to Work Program

We audited the District of Columbia Housing Authority's (Authority) administration of its leased housing under its Moving to Work Demonstration (Moving to Work) program based on our analysis of various risk factors relating to the housing authorities under the jurisdiction of the U.S. Department of Housing and Urban Development's (HUD) Baltimore field office. This is the second of three audit reports to be issued on the Authority's program. The audit objective addressed in this report was to determine whether the Authority ensured its program units met housing quality standards.

The Authority failed to ensure that its program units met housing quality standards. We inspected 70 housing units and found that 67 units did not meet HUD's housing quality standards. Moreover, 48 of the 67 units had exigent health and safety violations that the Authority's inspectors neglected to report during their last inspection. The Authority spent $192,821 in program and administrative funds for these 48 units. We estimated that over the next year if the Authority does not implement adequate procedures and controls to ensure that its program units meet housing quality standards, HUD will pay more than $21.7 million in housing assistance on units with material housing quality standards violations.

We recommend that the director of HUD's Baltimore Public Housing Program Hub require the Authority to ensure that housing units inspected during the audit are repaired to meet HUD's housing quality standards, reimburse its program from nonfederal funds for the improper use of $192,821 in program funds for units that materially failed to meet HUD's housing quality standards, and implement adequate procedures and controls to ensure that in the future program units meet housing quality standards to prevent an estimated $21.7 million from being spent annually on units with material housing quality standards violations.

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