Finding Text
2020-009 Food Allowances Paid in Excess of Allowable Amounts and From Improper Funds
Criteria:
Project-specific operating expenses include, but are not limited to, direct administrative costs, utilities costs, maintenance costs, tenant services, (Housing Authorities are permitted to fund $25 per unit per year for units represented by duly elected resident councils for resident services.) protective services, general expenses, non-routine or capital expenses, and other Housing Authority- or HUD-identified costs which are project-specific for management purposes.
Condition:
We noted that between October 2019 and May 2020, the Fayetteville Housing Authority paid 14 tenants a food allowance between $325 and $350 a month out of the Emergency Grant. Furthermore, these food allowances were not approved by the Board of Commissioners.
Questioned Costs:
$38,000
Effect:
The Housing Authority expended funds on unauthorized expenditures.
Cause:
Lack of Management oversight
Recommendation:
We recommend the Fayetteville Housing Authority review all expenditures related to the Emergency Grant and ensure that those expenditures were only for the replacement of HVAC piping, domestic water piping and sewer line piping. If expenditures not related to the replacement of piping, the Fayetteville Housing Authority should make arrangement to repay those funds to the funding agency.