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Audit leads to change at Dallas Housing Authority

10:11 PM CDT on Tuesday, August 19, 2008

By KIM HORNER / The Dallas Morning News
khorner@dallasnews.com

The Dallas Housing Authority board on Tuesday made an organizational change in response to a critical federal audit.

The commissioners voted unanimously to require the DHA's vice president of compliance to report to the board rather than the agency's president and chief executive officer.

Betty Culbreath, board chairwoman, said the change will better ensure that the board learns of agency problems. She said board members were unaware of many issues cited in the recent federal report, which recommended the change.

"We think it will work better this way," she said.

The audit by the U.S. Housing and Urban Development's Office of Inspector General found that the agency spent nearly $20 million on questionable rental assistance, including payments to at least 45 dead people.

Ann Lott resigned last month as the agency's president and chief executive officer after facing discipline over the audit's findings. The DHA appointed an interim leader and launched a search for a new executive.

Also at its meeting Tuesday, the board approved hiring Maryland-based Reznick Group to handle the next annual audit of the agency's finances, replacing Yeager & Boyd of Birmingham, Ala.

Yeager & Boyd's audit of the DHA, released in January, found that the agency had fixed problems repeatedly cited by international accounting firms. But the firm had been disciplined by regulators and criticized by HUD.

The DHA, with an annual budget of more than $250 million, provides housing assistance –mostly through rent subsidies – to 60,000 residents.

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