oversight

                                              U.S. DEPARTMENT OF
                              HOUSING AND URBAN DEVELOPMENT
                                       OFFICE OF INSPECTOR GENERAL




                                               April 8, 2015

                                                                                             MEMORANDUM NO:
                                                                                                  2015-FW-1804


Memorandum
TO:           Cheryl Williams
              Director, Public and Indian Housing, 6APH

              //signed//
FROM:         Gerald Kirkland
              Regional Inspector General for Audit, 6AGA

SUBJECT:      The Covington Housing Authority, Covington, LA, Generally Ensured That It
              Followed Federal Requirements When Administering Its Section 8 Housing
              Choice Voucher Program


                                          INTRODUCTION

In accordance with our annual audit plan to review public housing programs and based upon our
regional risk analysis, we reviewed the Covington Housing Authority’s Section 8 Housing
Choice Voucher program. Our objective was to determine whether the Authority administered
its program in accordance with U.S. Department of Housing and Urban Development (HUD)
regulations and its administrative plan.

                               METHODOLOGY AND SCOPE

The review generally covered the period from April 1, 2012 through April 30, 2014 for the
Authority’s program participant eligibility, housing assistance payments, and Section Eight
Management Assessment Program (SEMAP) reporting. We conducted the review at the
Authority’s administrative office in Covington, LA, and our offices in New Orleans and Baton
Rouge, LA, from October through December 2014.

To accomplish our objective, we

   •   Reviewed relevant regulations and program guidance;
   •   Reviewed the Authority’s organizational chart and written policies for the program;


                                              Office of Audit (Region 6)
                               819 Taylor Street, Suite 13A09, Fort Worth, TX 76102
                                     Phone (817) 978-9309, Fax (817) 978-9316
                         Visit the Office of Inspector General Web site at www.hudoig.gov.
    •   Reviewed the Authority’s audited financial statements and board resolutions;
    •   Interviewed Authority staff; and
    •   Reviewed the Authority’s program participant files.

We selected a nonstatistical random sample of 12 program participants from a total of 85
included in HUD’s Public and Indian Housing Information Center data as of April 30, 2014. We
reviewed the participants’ files to determine participant eligibility and the accuracy of the
housing assistance payment calculations. We also obtained and reviewed relevant SEMAP
documentation for the fiscal year ending March 31, 2013, to determine whether the reported
information was supported.

                                              BACKGROUND

The Authority is a public agency, established to provide decent, safe, and sanitary dwelling
accommodations and administer affordable housing programs for low-income persons or
families. It is located at 303 West 33rd Avenue, Covington, LA. The Authority manages 50
public housing units and is authorized 159 Section 8 housing choice vouchers. The Authority is
governed by a board of commissioners appointed by Covington’s mayor. The Authority’s
executive director is responsible for providing general supervision over the administration of its
business affairs and management of its housing projects. The following table shows the
Authority’s HUD funding received and disbursed during the review period.

                  Table: Housing Choice Voucher program funding
                    Fiscal year   Authorized funds     Disbursed funds
                       2012               $ 815,097           $ 786,324
                       2013                  555,688             542,009
                       2014                  775,063             772,728
                       Total              $2,145,848          $2,101,061


                                         RESULTS OF REVIEW

The Authority generally followed HUD’s requirements in administering its program. It
generally performed reexaminations annually, ensured eligibility of program participants, and
maintained support for its March 2013 SEMAP scores 1. However, for the 12 participant files
reviewed, we found minor errors regarding participant income calculations, medical insurance
payment documentation, and housing assistance and utility calculations. The minor errors were
not material to the Authority’s overall operations. We addressed these issues to the Authority
and the HUD New Orleans Public Housing Director in a separate memorandum, dated February
26, 2015. Since the Authority generally complied with HUD requirements, we do not
recommend corrective action.




1
    The Authority was not required to submit certification document for fiscal year ended March 2014, since it has
    less than 250 units and was not classified as SEMAP troubled during the previous rating period.



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                                    APPENDIX

Appendix A

        AUDITEE COMMENTS AND OIG’S EVALUATION


The Authority and HUD generally agreed with the memorandum. On March 24, 2015, both the
Authority and HUD advised that they would not be providing comments.




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