A newly released internal audit appears to indicate that the Government Accountability Office and President Barack Obama’s Department of Housing and Urban Development incorrectly argued that a specific organization wasn’t ACORN-affiliated.

HUD’s office of general counsel and the GAO have both claimed that Affordable Housing Centers of America, or AHCOA, is not affiliated with the Association of Community Organizations for Reform Now, or ACORN. AHCOA formerly called itself ACORN Housing, but changed its name after the 2009 ACORN meltdown.

The Obama administration has awarded more than $700,000 in taxpayer funds to AHCOA despite a 2010 law stipulating that no taxpayer funds could be awarded to ACORN “or any of its affiliates, subsidiaries, or allied organizations.”

The previously confidential internal audit report, from NeighborWorks America, shows that contrary to what the GAO and the Obama administration contend, AHCOA is far too close to ACORN to receive taxpayer funding. In fact, NeighborWorks America — a nonprofit group that doles out taxpayer funds — decided against sending cash to AHCOA because of the internal audit report it conducted.

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