oversight

                                                            U.S. Department of Housing and Urban Development
                                                            District Office of the Inspector General
                                                            Office of Audit
                                                            Richard B. Russell Federal Building
                                                            75 Spring Street, SW, Room 330
                                                            Atlanta, GA 30303-3388
                                                            (404) 331-3369




April 23, 2001                                                                           Audit Memorandum
                                                                                         No. 2001-AT-1803


MEMORANDUM FOR:                  John L. Perry, Director, Georgia State Office of Community
                                    Planning and Development, 4AD




FROM:            Nancy H. Cooper
                 District Inspector General for Audit-Southeast/Caribbean, 4AGA


SUBJECT:         Accounting System Evaluation
                 Veterans Opportunity and Resource Center, Inc.
                 Atlanta, Georgia

                                            INTRODUCTION

As you requested, we have completed a limited evaluation of the new accounting system implemented
by Veterans Opportunity and Resource Center, Inc. (VORCI). Your request was the result of a
monitoring visit by your staff to VORCI. During this visit, your staff determined that VORCI’s
accounting system was not adequate to properly account for the receipt and disbursement of grant funds
and the charging of costs to the various grant programs. VORCI informed your staff that it had installed
a new accounting system to correct this problem. Our review was limited to the review of this new
system.


                                           SCOPE OF REVIEW

We conducted the evaluation to determine if VORCI had implemented an adequate financial
management system to account for the grant funds for which it has applied. This review was not an
audit made in accordance with generally accepted auditing standards. Our evaluation included a review
of the Supportive Housing Program grant proposal and budget, discussions with Arthur C. Barham,
Executive Director, and Jennifer Neely, Administrative Operations Manager, a “walk through” of the
new accounting system, a review of various accounting forms, and VORCI’s Financial Management
System Handbook that establishes, among other things, internal control and purchasing procedures.


      Visit the Office of Inspector General on the World Wide Web at http://www.hud.gov/oig/oigindex.html



                                                                                                    Exit
                                       OBSERVATIONS

Based on our review, we determined that VORCI has an adequate financial management system in
place to account for Supportive Housing Program grant funds. We noted that although VORCI has
developed new forms to keep track of the time an employee spends on each grant, they were currently
not being used. The use of these forms applies primarily to administrative personnel, such as the
Executive Director and Administrative Operations Manager, who perform administrative functions for
the various grants. The budget for the proposed grant shows the Administrative Operations Manager
charging 100 percent of her time to the grant. Discussions with the Manager, however, show she will
also be spending time on other grants. We discussed this with the Executive Director and the
Administrative Operations Manager. They agreed the forms would be used to track the employees’
time.

This memorandum is for your information and does not require a response. If you have any questions,
please contact Terry Cover, Assistant District Inspector General for Audit, or myself at (404) 331-
3369.




                                                                                        Exit
                                         DISTRIBUTION

Director, Veterans Opportunity and Resource Center, Inc.
Secretary, S
Deputy Secretary, SD (Room 10100)
Chief of Staff, S (Room 10000)
Assistant Secretary for Administration, S (Room 10110)
Acting Assistant Secretary for Congressional and Intergovernmental Relations, J (Room 10120)
Deputy Assistant Secretary, Office of Public Affairs, S, (Room 10132)
Deputy Assistant Secretary for Administrative Services, Office of the Executive Secretariat, AX
    (Room 10139)
Deputy Assistant Secretary for Intergovernmental Relations,
Acting Deputy Chief of Staff, S (Room 10226)
Deputy Chief of Staff for Policy, S (Room 10226)
Deputy Chief of Staff for Programs, S (Room 10226)
Special Counsel to the Secretary, S (Room 10234)
Senior Advisor to the Secretary, S
Special Assistant for Inter-Faith Community Outreach, S (Room 10222)
Executive Officer for Administrative Operations and Management, S (Room 10220)
General Counsel, C (Room 10214)
Assistant Secretary for Housing/Federal Housing Commissioner, H (Room 9100)
Assistant Secretary for Policy Development and Research, R (Room 8100)
Assistant Secretary for Community Planning and Development, D (Room 7100)
Assistant Deputy Secretary for Field Policy and Management, SDF (Room 7108)
Office of Government National Mortgage Association, T (Room 6100)
Assistant Secretary for Fair Housing and Equal Opportunity, E (Room 5100)
Director, Office of Departmental Equal Employment Opportunity, U
Chief Procurement Officer, N (Room 5184)
Assistant Secretary for Public and Indian Housing, P (Room 4100)
Director, Office of Departmental Operations and Coordination, I (Room 2124)
Office of the Chief Financial Officer, F (Room 2202)
Chief Information Officer, Q (Room 3152)
Acting Director, HUD Enforcement Center, V, 1250 Maryland Avenue, SW, Suite 200
Acting Director, Real Estate Assessment Center, X, 1280 Maryland Avenue, SW, Suite 800
Director, Office of Multifamily Assistance Restructuring, Y, 1280 Maryland Avenue, SW, Suite 4000
Inspector General, G (Room 8256)




                                                                                         Exit
Secretary's Representative, 4AS
Audit Liaison Officer, 3AFI
Audit Liaison Officer, Office of Community Planning and Development, DOT (Room 7220)
Departmental Audit Liaison Officer, FM (Room 2206)
Acquisitions Librarian, Library, AS (Room 8141)
Counsel to the IG, GC (Room 8260)
HUD OIG Webmanager-Electronic Format Via Notes Mail (Cliff Jones@hud.gov)
Public Affairs Officer, G (Room 8256)
Stanley Czerwinski, Associate Director, Resources, Community, and Economic Development
   Division, U.S. GAO, 441 G Street N.W., Room 2T23, Washington DC 20548
The Honorable Fred Thompson, Chairman, Committee on Governmental Affairs,
   United States Senate, Washington DC 20510-6250
The Honorable Joseph Lieberman, Ranking Member, Committee on Governmental Affairs,
   United States Senate, Washington DC 20510-6250
The Honorable Dan Burton, Chairman, Committee on Government Reform,
   United States House of Representatives, Washington DC 20515-6143
The Honorable Henry A. Waxman, Ranking Member, Committee on Government Reform,
   United States House of Representatives, Washington, DC 20515-4305
Ms. Cindy Fogleman, Subcommittee on Oversight and Investigations, Room 212,
   O'Neil House Office Building, Washington, DC 20515-6143
Steve Redburn, Chief, Housing Branch, Office of Management and Budget, 725 17th Street, NW,
   Room 9226, New Executive Office Bldg., Washington, DC 20503
Sharon Pinkerton, Deputy Staff Director, Counsel, Subcommittee on Criminal Justice, Drug
   Policy and Human Resources, B373 Rayburn House Office Bldg., Washington, DC 20515
Armando Falcon, Director, Office of Federal Housing Enterprise Oversight, O, 1700 G Street, NW,
   Room 4011, Washington, DC 20552




                                                                                       Exit