Actions Being Taken To Collect Overbillings and Improve Contracting Procedures at HUD's Columbus Area and Cincinnati Service Offices

CED-81-67: Published: Feb 19, 1981. Publicly Released: Feb 19, 1981.

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GAO was requested to review the actions taken by the Department of Housing and Urban Development (HUD) in response to a previous GAO report which identified contract award irregularities, overbillings, and billings for work not performed at HUD-owned multifamily housing projects.

While HUD has taken corrective action on the problems identified in the previous report, certain problems remain. Final settlements have not been made for the overbillings, even though almost 2 years have elapsed since GAO recommended action on the matter. Numerous internal audits, operational surveys, and regional contracting officer reviews conducted by HUD indicate that there are serious nationwide contracting deficiencies at HUD field offices. GAO believes that HUD needs to move more expeditiously to: (1) resolve and settle the overbillings identified in the prior report; (2) collect funds that were improperly paid to a project manager for the salary of a fictitious employee; and (3) improve contracting procedures.

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