WFAA-TV

DALLAS - A recent audit has found that millions of taxpayer dollars are unaccounted for inside the Dallas Housing Authority.

The audit found the books so disorganized and mismanaged that nearly $4 million aren't accounted for.

The DHA oversees 16,000 families with rental vouchers. When a family who already has a voucher moves to Dallas, the DHA gets reimbursed from the city from where the tenant came from. However, the DHA's recordkeeping in tracking the portable vouchers in 2005 and 2006 were found to be sloppy.

"I am concerned about the findings in this report and I've taken the necessary steps to address the problems," said Ann Lott, DHA president and CEO.

The audit concluded that DHA tried to account for vouchers with "inaccurate, unreliable and altered records," and then billed HUD for $3.7 million that's unaccounted for and HUD now wants back.

DHA also denied or discouraged families from using transferred vouchers.

"The taxpayers have to trust that not only are we doing the right things from the housing standpoint, but that we are managing the money in the correct way," said Mayor Tom Leppert, who is demanding change.

DHA's big problem is the DOS operating system installed in 1984 that runs the voucher program. The system can't talk with the financial software.

"It always sounds like an excuse and I'm not here today to offer you any excuses," Lott said. "It was unacceptable."

Lott said a vendor failed to upgrade the system in 2003, but a new company will have a Windows-based system in by August.

Lott's contract is up in July, which is also about how much time Leppert gave her to fix the problem.

"We've got six months to fix it," he said. "And if not then, we're going to have to make other changes."

"...I'm confident that the mayor won't have a reason to look for someone else in six months," Lott said. "It will be finished."