New Orleans, La.—A federal audit report says the Jefferson Parish Housing Authority violated federal regulations in its handling of hundreds of thousands of federal dollars.
The Inspector General Office in the Department of Housing and Urban Development said some of the agency's actions even broke federal law.
Federal officials are questioning the expenditure of more than $600,000 by the agency.
The audit report said agency credit cards were misused, federal requirements for awarding contracts were not followed, members of the housing authority board were on the payroll, and the authority created a conflict of interest when it paid more than $90,000 to a company owned by a state lawmaker.
"A pretty damning report, critical report of the Jefferson Parish Housing Authority, even though it's a Jefferson Parish Authority it is a state agency, created under state law," said Jefferson Parish President John Young.
The scathing audit report listed four major findings:
--The Authority did not always follow federal and other requirements when awarding contracts for accounting, legal, and auditing services.
--The Authority used more than $280,000 in federal funds for unsupported and ineligible costs.
--The Authority violated federal law when it paid more than $100,000 to its board members out of the Section 8 funds.
--The Authority created a conflict of interest when it paid more than $90,000 to a state legislator's company.
The report listed the company as Diversified Ventures. The Secretary of State's web site lists the owner of the Gretna company as Girod Jackson. Jackson is a state representative from Harvey.
"The responsible parties are going to be held accountable, if necessary, and if appropriate we will refer them to the proper law enforcement authorities…and make sure the money's recovered and make sure that those responsible are fully held accounted," said Young.
Council Chairman Chris Roberts said each council person has an appointee on the board, and so does the parish president.
"The findings are disturbing to us and it's going to be incumbent upon the housing authority to take corrective action, one to satisfy the issues that have been brought up within the report, and then two to ensure that moving forward that they are in compliance with all of the federal guidelines," Roberts said Wednesday afternoon.
The feds also found that the agency used its Wal-Mart credit card to purchase office snacks, like energy drinks, and over the counter medications.
Specifically the audit report lists $202,114 in ineligible costs, and $453,793 in what is called unsupported expenditures.
"If they cannot satisfy the auditors request then they're going to be obligated to pay that back as well," said Roberts.
Jefferson Parish Housing Authority in Marrero.
