Title: Jack Hall Waipahu, Westlake and Kulana Nani Projects Managed by Chaney, Brooks and Company, Honolulu, HI

We completed an audit of Jack Hall Waipahu, Westlake and Kulana Nani Projects managed by Chaney, Brooks and Company (CBC). The audit was initiated based on a referral from the Honolulu HUD Office of Multifamily Housing. Our audit objective was to assess the Management Agent and owner's oversight relative to renovation, repairs and procurement of goods and services.

The audit disclosed serious problems in the use of project funds, including a lack of management controls by both the owners and management agent. Subsequent to the completion of our review, the owners of Jack Hall Waipahu, prepaid the HUD-insured mortgage and is not longer bound by the terms of the Regulatory Agreement; therefore, repayment of the $207,265 in excessive and duplicate charges was not required. However, the owner of the other two projects, the City and County of Honolulu, is still required to abide by the Regulatory Agreement terms. We recommend HUD require the City and County of Honolulu repay Westlake $144,919, and Kulana Nani $49,896 for excessive and duplicate costs approved by the CBC Property Manager.

We also recommend HUD impose administrative sanctions against CBC until it demonstrates that it has developed and implemented adequate written procedures and controls over its accounting procurement on-site manager training, and monitoring responsibilities.

Issue Date: September 30, 2002
Audit Memorandum No.: 2002-SF-1006
File Size: 1594KB

Title: Audit Memorandum - Congressionally Requested Audit of the Outreach and Training Assistance Grant awarded to the Legal Aid Society of Hawaii, Honolulu, HI, Grant Number FFOT98006HI

In response to a Congressional request, we audited the Legal Aid Society of Hawaii's (LASH) Outreach and Training Assistance Grants (OTAG) with particular emphasis on identifying ineligible lobbying activities. Our audit identified the LASH charged the grant $6,408 for tenant legal representation not allowed by the 1998 NOFA, OMB Circular A-122, or the grant agreement. In addition, the LASH did not sufficiently confirm $10,904 in questionable sub grantee payroll expenses in accordance with the grant agreement; OMB Circular A-110; and 24 CFR Part 84, Uniform Administrative Requirements for Grants and Agreements with Nonprofit Organizations.

Our report contains five recommendations to address the issues identified in the report and strengthen the management controls of the grantees.

Issue Date: September 30, 2002
AUDIT MEMORANDUM 2002-DE-1002
File Size: 345KB

Title: Affordable Housing and Homeless Alliance, Honolulu, HI

We completed an audit of the Affordable Housing and Homeless Alliance's (grantee) Outreach and Training Assistance Grant (OTAG) and three Intermediary Technical Assistance Public Entity Grants (PEG) administered by the Amador-Tuolumne Community Action Agency, an Intermediary Technical Assistance Grantee (ITAG). The audit identified that the grantee overcharged the grant at least $12,242.19 for salaries, had questioned costs of $2,650.32, unsupported costs of $1,738.32, duplicate billings of $236.44, and did not comply with Title 24 CFR Part 84 and other requirements under the Office of Management and Budget's Circular A-122, Cost Principles for Non-Profit Organizations. We did not identify any instances where grant funds were expended in support of lobbying activities. Our report contains six recommendations to address the issues identified in the report and to strengthen management controls over the grantee.

Issue Date: August 28, 1996
Audit Related Memorandum 96-SF-119-0806
File Size: 14KB

Title: Kukui Towers, Honolulu, HI

Although our review continues, the selection of the priority purchaser for Kukui Towers appears to be contrary to existing requirements and lacks the requisite resident support. Also, the $40 million capital grant attached to the preservation efforts appears to exceed the current value of Kukui Towers. Since the capital grant for Kukui Towers will be recaptured by September 30, 1996 if the sale to a priority purchaser is not accomplished by that date, your immediate attention to Kukui Towers is essential.