Jefferson Parish Housing Authority Violated Federal Regulations

HUD audited the Jefferson Parish Housing Authority in Marrero, La., as part of its annual audit plan to review public housing programs. The auditors sought to determine whether the authority operated in accordance with HUD and other requirements.

The auditors found that the authority didn’t always comply with federal procurement regulations or ensure that its expenditures were eligible and supported. Specifically, the authority:

• Didn’t always follow federal procurement and other requirements for its accounting, legal, and auditing services;
• Couldn’t support disbursements made for security services, a grant coordinator, and credit card purchases, and paid for ineligible credit card purchases;
• Made ineligible payments to its commissioners; and
• Created a conflict of interest when it made payments to a state legislator’s company.

These conditions occurred because the authority didn’t understand or follow federal regulations or its procurement policy, didn’t have adequate procurement or accounting policies and procedures or proper internal controls, and disregarded HUD guidance.

The auditors recommended that HUD require the authority to:

• Repay $202,114 in ineligible costs;
• Support or repay $453,793;
• Develop and implement proper internal controls;
• Immediately stop using funds for prohibited costs; and
• Provide training to authority employees.

The auditors also recommended that the director of the Departmental Enforcement Center impose appropriate administrative sanctions against the authority’s executive director and board members for violating HUD requirements.

• HUD Audit Report 2012-AO-1002: The Jefferson Parish Housing Authority, Marrero, LA (7/30/12)