In April 2023, a federal audit revealed $3 million in unexplained discrepancies in the Housing Authority of the City of Milwaukee (HACM)'s accounts. The prior finance team failed to resolve the issue after a two-year investigation. Recently appointed CFO Brad Leak identified the misallocation, linking it to funds intended for HUD's Housing Choice Voucher program, which were diverted for payroll and other operational costs. Board chair Charlotte Hayslett publicly apologized, and HACM is collaborating with HUD on a recovery plan, having acknowledged past financial management issues that affected its credit rating.
The misallocation of funds was discovered following an investigation lasting nearly two years, revealing serious financial discrepancies under the previous finance team.
HACM Chief Financial Officer Brad Leak quickly traced the source of the financial discrepancies back to an error involving funds tied to HUD's rental assistance program.
Charlotte Hayslett, HACM chair, expressed deep regret over the misuse of funds, which were misallocated to pay for payroll instead of supporting the HCV program.
HACM has partnered with HUD to implement a recovery plan and has adopted new protocols to prevent future financial mismanagement, aiming to restore credibility.
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