Craig Cornwell has a LOT on his plate. On July 11th, HUD requested sanctions be imposed on the Compton Housing Authority (CHA) for not being in compliance with Housing and Urban Development (HUD) requirements and repayment of $77,542 from non federal funds. The sanctions are directly related to nearly six (6) years of audited financial statements being delinquent. That would be the entire duration of Compton Mayor Aja Brown’s tenure on the council.
Eadie + Payne was awarded a contract for $850,000 to perform said audits. At tonight’s regular city council meeting Eadie + Payne were due to deliver audit results on the federal housing funds which does’t include an opinion of their compliance.
Those assembled in council chambers learned Cornwell has not received a finalized contract for City Manager duties. It is also unclear if he is still receiving his salary as city attorney, as that seat was declared vacant. It was alleged that auditors from Eadie + Payne recommended Cornwell take over duties as City Manager
We audited the Compton Housing Authority’s Housing Choice Voucher Program, based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Los Angeles Office of Public Housing, due to concerns regarding its financial activity control weaknesses. The objective of the audit was to determine whether the Authority administered its Housing Choice Voucher Program in accordance with program requirements, with an emphasis on its procurement, financial transactions, and portability.
The Authority did not follow proper procurement or financial management procedures for professional auditing services and ensure the timely submission of audited financial statements in accordance with HUD requirements. It also overreimbursed housing assistance payment (HAP) administrative fees to the City’s general fund account. As a result, $77,542 in program funds spent on professional auditing services was not reasonable and appropriate, HUD had no assurance regarding the financial condition of the Authority’s programs, and $30,562 in HAP funds was not available for the operation of the program.
We recommend that the Director of the Los Angeles Office of Public Housing require the Authority to (1) repay the program $77,542 from non-Federal funds for the unreasonable professional auditing service payments; (2) establish and implement additional procedures and controls to ensure that procurement and contracting requirements are followed, along with the associated maintenance of applicable documentation; (3) complete and submit the audited financial statements for all past-due fiscal years; and (4) develop and implement additional procedures and controls to ensure that the administrative fees for the portability HAP are accurately calculated. We also recommend that the Director consider imposing sanctions on the Authority for not completing and submitting audited financial statements for all delinquent fiscal years.