12 INVESTIGATES: Audit questions RRHA 2012 spending

RICHMOND, VA (WWBT) - We've been investigating the RRHA for the past month. NBC12 was the first to tell you about the agency using your federal dollars to take residents on a bus trip to a casino. Now, a new audit, once again questions the authority's spending.

This financial statement breaks down the RRHA's 72 million dollar budget from last year. It's done by an independent auditor and is required by law. While they were no major red flags, the audit did find quote, "significant deficiencies" in how the RRHA handled some federal money -- your tax dollars.

Richmond's housing projects each have a tenant council. Its supposed to give residents a voice, a place to go over problems, to get help and plan activities.

But according to a document released earlier this year, auditors also questioned spending by those tenant councils.

Auditors discovered 6 out 18 tenant council reports were missing receipts to prove what money was spent on and they found money was spent on "personal items".

The auditors only sampled a small  number of the tenant council funds- in that sample they questioned $2,414 in spending.

Last week, NBC12 exposed a questionable trip paid for with those funds to a casino in West Virginia for $1,515.

The RRHA told us the trip and spending was inappropriate and unfortunate, but did not violate federal HUD regulations.

Auditors recommended the RRHA improve how it reviews tenant council spending and train those council members to keep better records.

The RRHA says it made the changes this past August.

We've since learned the Department of Housing and Urban Development is now reviewing the RRHA's spending. HUD says it is sending people to Richmond in the coming weeks.

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