Federal Reports

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Tacoma Housing Authority’s participation in the Rental Assistance Demonstration Program (RAD) because it had the highest number of completed RAD units and the second highest number of total RAD units in HUD’s Region 10. Our objective was to determine whether the Authority executed the appropriate written agreements for RAD, ensured that project financing sources were secured, obtained physical condition assessments, appropriately used replacement housing factor funding for converting public housing units to RAD, and followed its Moving to Work policy by conducting annual tenant reexaminations for its RAD converted units.We found that the Authority generally executed the appropriate written agreements for RAD, ensured that project financing sources were secured, obtained physical condition assessments, and appropriately used replacement housing factor funding for converting public housing units to RAD. However, the Authority did not always conduct annual tenant reexaminations for its RAD converted units. As a result, the Authority paid $2,975 in unsupported and ineligible housing assistance for 5 of the 20 sampled tenants.We recommend that the Director of the Seattle Office of Public Housing (1) require the Authority to provide support for the $1,071 in unsupported assistance payments made in 2017 and reimburse its RAD-converted project-based voucher program using non-Federal funds for any amount that remains unsupported, (2) require the Authority to reimburse its RAD-converted project-based voucher program $1,904 using non-Federal funds for the ineligible assistance payments made in 2017, (3) require the Authority to complete overdue annual reexaminations and reconcile corrections by reimbursing tenants and its RAD-converted project-based voucher program using non-Federal funds, and (4) conduct a review to determine whether the Authority is complying with the reexamination schedule in its Moving to Work policy and incorporate timely reexaminations in the risk management assessment.

The OIG investigated allegations that an Office of Aviation Services (OAS) employee conducted private pilot examinations while on U.S. Government time, leased his personal aircraft to the Government, and improperly obtained clients because of his wife’s position at another Federal agency.We confirmed the employee conducted private pilot exams during time he also claimed for official duty on as many as 33 occasions. The employee said he mistakenly failed to take leave on 11 of those occasions but disputed the other 22. We found no indication he leased his private aircraft to any Government agency or that he obtained clients through his wife. The U.S. Attorney’s Office for the District of Idaho declined prosecution.

Pathways for Children, Inc. (Pathways), generally complied with Federal and State requirements by establishing systems of health and safety practices and management for ensuring the health and safety of children in its Head Start program. While we observed instances of noncompliance with select Federal and State health and safety requirements, we did not observe a systemic problem throughout Pathways. Pathways could improve its procedures to ensure children are kept safe at all times. Specifically, we found that Pathways did not always ensure its (1) buildings and physical premises complied with Federal Head Start safety practices and State licensing standards, (2) employees received background checks as frequently as required, and (3) children received lead screening at the appropriate age.