U.S. Department of Housing and Urban Development Region 6, Office of Inspector General 819 Taylor Street, Room 13A09 Fort Worth, Texas 76102 (817) 978-9309 FAX (817) 978-9316 http://www.hud.gov/offices/oig January 30, 2004 2004-FW-1801 MEMORANDUM FOR: Dominick Pittari Director of Public and Indian Housing, 6HPH FROM: D. Michael Beard Regional Inspector General for Audit, 6AGA SUBJECT: Logansport Housing Authority Louisiana Legislative Auditor’s Report Attached is the Louisiana Legislative Auditor report on the Logansport Housing Authority (Authority). The State Auditor issued the report to the Authority Board of Commissioners on December 17, 2003. The report details mismanagement and possible misappropriation of $156,434 by the Executive Director. To ensure resolution of the significant problems cited by the Louisiana Legislative Auditor, we have decided to control several recommendations in the report and make some recommendations of our own. Also, we have referred the matter to our Office of Investigation for evaluation and pursuit. 1A. The Authority should support or reimburse its HUD funded programs for: a. $29,040 for personal items including the truck, sofa, chairs, fireplace equipment, dining room set, dishwasher, and yard fence. b. $7,673 for checks written for labor while the “contract laborer” was incarcerated. c. $23,400 in unauthorized bonuses to the Executive Director and Authority Secretary. d. $50,555 in contract payments to suspected companies of the Executive Director. e. $4,986 in payments for goods and services unrelated to normal operations of the Authority. f. $1,536 for payments to a maintenance worker who performed personal work for the Executive Director. g. $3,250 for the missing Authority equipment including a power washer, chain saw, refrigerator, and portable building. 1B. Since the former Executive Director appears to be responsible for and the beneficiary of many of the ineligible and unsupported expenditures, the Authority should actively pursue civil remedies against the former Executive Director including issuing her a 1099 for expenditures determined not cost-effective to pursue civilly. 2 1C. Implement the necessary controls and policies over cash receipts and disbursements, procurement, ethics, and employment. Further, we recommend you: 1D. Assist the Authority in implementing the necessary controls. 1E. Seek administrative sanctions against those involved in the misuse of HUD funds. In accordance with HUD Handbook 2000.06 REV-3, within 60 days, please furnish this office, for each recommendation in this report, a status on: (1) corrective action taken; (2) the proposed corrective action and the date to be completed; or (3) why action is not considered necessary. Additional status reports are required at 90 days and 120 days after report issuance for any recommendation without a management decision. Also, please furnish us copies of any correspondence or directives issued related to the audit. If you have any questions, please give myself or William W. Nixon, Assistant Regional Inspector General, a call at 817-978-9309. Attachments cc: Grover C. Austin, CPA, First Assistant Legislative Auditor 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Logansport Housing Authority, Louisiana Legislative Auditor's Report
Published by the Department of Housing and Urban Development, Office of Inspector General on 2004-01-30.
Below is a raw (and likely hideous) rendition of the original report. (PDF)