EIN: 730751972
UEI: CBCMRLXMUWC1
Audited by: CliftonLarsonAllen LLP
Cognizant agency: 14 [Department of Housing and Urban Development]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 29, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by March 29, 2026 (152 days ago).
What is a management decision? →During our audit, we noted the Authority did not have adequate controls in place to track inter-company transactions. Questioned costs: $4,738,502 – this amount is the net of FDS Lines 144 and 347 – Inter Program – Due from and Due to. Context: During our audit, we noted that the Public and Indian Housing program has amounts on FDS Line 144, Inter Program – Due From of $5,104,104. This could indicate that funds could have been used to provide temporary loans to other programs. Cause: The Authority uses a revolving fund to pay operating costs. As such, entries are made to intercompany accounts to balance adjustments. The Authority did not close out these balances at the end of the year. Effect: The authority could be potentially misstating inter-program amounts or transferring funds from the operating accounts to provide temporary loans to other housing authority programs, which would require HUD approval. Recommendation: We recommend the Authority design controls to ensure an adequate review process is in place to ensure inter-program accounts are properly stated at year-end. View of Responsible Officials: There is no disagreement with this finding.
Show full finding ▾Hide full finding ▴Public Housing - Inter-Program Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public and Indian Housing Assistance Listing Number: 14.850 Federal Award Identification Number and Year: OK002 and 2024 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: - Significant Deficiency in Internal Control over Compliance. - Other Matters. Criteria or specific requirement: The Operating Fund was established for the purpose of making assistance available to PHAs for the operation and management of public housing. Transfers out of the Operating Fund can only occur in very limited circumstances, such as when PHAs participate in the Moving to Work Demonstration Program (Assistance Listing 14.881) authorized by 204(c)(1) of Title II of the Omnibus Consolidated Rescissions and Appropriations Act of 1996, Pub. L. No. 104-134, 110 Stat. 1321-282. This would preclude PHAs from using Operating Funds to provide temporary loans to other programs within the PHA. Timing differences in a pooled cash environment would not be considered as temporary loans. Inter-fund transactions indicate the existence of temporary loans. Inter-fund receivables are recorded on FDS line 144 (Inter program – due from). In particular, inter-fund receivables should be reviewed to determine whether they are satisfied on a timely basis. In addition, FDS lines 10020 (Operating Transfers Out) and 10094 (Transfers Between Programs and Projects – Out) could indicate whether transfers out of the Operating Fund have been made. If PHAs have transferred funding out of the Operating Fund, proper authorization from HUD should be documented (42 USC 1437g(e)). Condition: During our audit, we noted the Authority did not have adequate controls in place to track inter-company transactions. Questioned costs: $4,738,502 – this amount is the net of FDS Lines 144 and 347 – Inter Program – Due from and Due to. Context: During our audit, we noted that the Public and Indian Housing program has amounts on FDS Line 144, Inter Program – Due From of $5,104,104. This could indicate that funds could have been used to provide temporary loans to other programs. Cause: The Authority uses a revolving fund to pay operating costs. As such, entries are made to intercompany accounts to balance adjustments. The Authority did not close out these balances at the end of the year. Effect: The authority could be potentially misstating inter-program amounts or transferring funds from the operating accounts to provide temporary loans to other housing authority programs, which would require HUD approval. Recommendation: We recommend the Authority design controls to ensure an adequate review process is in place to ensure inter-program accounts are properly stated at year-end. View of Responsible Officials: There is no disagreement with this finding.
Public and Indian Housing -Assistance Listing No. 14.850 - Inter-Program Recommendation: We recommend the Authority design controls to ensure an adequate review process is in place to ensure inter-program accounts are properly stated at year-end. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding:The Oklahoma City Housing Authority will develop and document formal procedures for reconciling inter-program accounts. We will establish a secondary review process and create a year-end close checklist that includes inter-program reconciliations. The authority will provide staff training on inter-program account recording and reconciliation requirements. Name(s) of the contact person(s) for corrective action: Jon Reininer Planned completion date for corrective action plan: Review process and checklist creation will be completed 12/31/2025
FAC accepted this audit on September 26, 2024 — management decision was due March 26, 2025.
During our testing, we noted the Authority did not have adequate internal controls designed to ensure that eligibility requirements were being met. Questioned costs: Unknown Context: Testing of 40 tenant files resulted in: 1 HUD-50058 form did not properly include a disability allowance. 2 HUD-50058 recertifications were processed late. OKLAHOMA CITY HOUSING AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED DECEMBER 31, 2023 (66) Section III – Federal Award Findings and Questioned Costs (Continued) 2023 - 001 – HCVP Eligibility (Continued) Cause: The Authority did not follow established procedures as documented in its administrative plan to ensure that eligibility requirements were being met. Effect: This could have a direct impact on the HAP calculation. The Authority is not in compliance with program requirements over eligibility. Repeat Finding: The finding is a repeat of a finding in the immediate prior year. Prior year finding numbers were 2022-001, 2021-002 and 2020-003. Recommendation: We recommend management to enhance controls and policies to ensure compliance with eligibility requirements. Additional training for housing specialists would also improve accuracy. View of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴HVC Eligibility Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Federal Award Identification Number and Year: OK002 (various funding increments active during period 1/1/23-12/31/23) Award Period: January 1, 2023 through December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance. Other Matters. Criteria: As a condition of admission or continued occupancy, the PHA must require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.601 et seq., 5.609, 960.253, 960.255 and 960.259). 24 CFR section 960.259 states that for both family income examinations and reexaminations, the PHA must obtain and document in the family file third-party verification of: (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent. 24 CFR sections 5.601 et seq., and 24 CFR sections 960.253, 960.255, and 960.259 state that the Authority must determine income eligibility and calculate the tenant’s rent payment using the documentation from third-party verification in accordance with 24 CFR part 5, subpart F. 24 CFR sections 5.230, 5.609, and 960.259 state that as a condition of admission or continued occupancy, the Authority must require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. 2 CFR 200.303 requires the Authority to establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in accordance with federal statutes, regulations, and the terms and conditions of the award. Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that eligibility requirements were being met. Questioned costs: Unknown Context: Testing of 40 tenant files resulted in: 1 HUD-50058 form did not properly include a disability allowance. 2 HUD-50058 recertifications were processed late. OKLAHOMA CITY HOUSING AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED DECEMBER 31, 2023 (66) Section III – Federal Award Findings and Questioned Costs (Continued) 2023 - 001 – HCVP Eligibility (Continued) Cause: The Authority did not follow established procedures as documented in its administrative plan to ensure that eligibility requirements were being met. Effect: This could have a direct impact on the HAP calculation. The Authority is not in compliance with program requirements over eligibility. Repeat Finding: The finding is a repeat of a finding in the immediate prior year. Prior year finding numbers were 2022-001, 2021-002 and 2020-003. Recommendation: We recommend management to enhance controls and policies to ensure compliance with eligibility requirements. Additional training for housing specialists would also improve accuracy. View of Responsible Officials: There is no disagreement with the audit finding.
Housing Voucher Cluster – Assistance Listing No. 14.871 / 14.879 – Eligibility Recommendation: We recommend management to implement controls and policies to ensure compliance with eligibility requirements. Additional training for housing specialists would also improve accuracy. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Monitor and quality control documents as required by HUD. If quality control determines there is a pattern of the same type of discrepancy, then corrective actions will be taken. The finding is based on 2 late reexaminations and failure to automatically identify a client as disabled. This is marked as a repeat finding in the same category, but is not the same type of finding as last year.
2022-001, 2021-002, 2020-003
During testing, it was noted that the Authority did not have adequate internal controls designed to ensure that rent reasonableness requirements were being met. Questioned costs: None Context: During the testing of 40 new tenant files, one instance was noted where the Authority approved a contract rent higher than the amount determined to be reasonable. Cause: The Authority does not have controls in place to ensure it is meeting reasonable rent requirements set by HUD. Effect: The Authority is not in compliance with program requirements over reasonable rent. Repeat Finding: The finding is a repeat of a finding in the immediate prior year. Prior year finding numbers were 2022-003. Recommendation: We recommend management to enhance controls over the recertification and rent change process to ensure determination of reasonable rent is performed prior to processing of the move in. View of Responsible Officials: There is no disagreement with the audit finding. The Authority made necessary corrections and recoupment of HAP during the process of this audit.
Show full finding ▾Hide full finding ▴HVC P Rent Reasonableness Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Federal Award Identification Number and Year: OK002 (various funding increments active during period 1/1/23-12/31/23) Award Period: January 1, 2023 through December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance. Other Matters. Criteria: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract: (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a five percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). OKLAHOMA CITY HOUSING AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED DECEMBER 31, 2023 (67) Section III – Federal Award Findings and Questioned Costs (Continued) 2023 - 002 – HCVP Rent Reasonableness (Continued) Criteria (Continued): 2 CFR 200.303 requires the Authority to establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in accordance with federal statutes, regulations, and the terms and conditions of the award. Condition: During testing, it was noted that the Authority did not have adequate internal controls designed to ensure that rent reasonableness requirements were being met. Questioned costs: None Context: During the testing of 40 new tenant files, one instance was noted where the Authority approved a contract rent higher than the amount determined to be reasonable. Cause: The Authority does not have controls in place to ensure it is meeting reasonable rent requirements set by HUD. Effect: The Authority is not in compliance with program requirements over reasonable rent. Repeat Finding: The finding is a repeat of a finding in the immediate prior year. Prior year finding numbers were 2022-003. Recommendation: We recommend management to enhance controls over the recertification and rent change process to ensure determination of reasonable rent is performed prior to processing of the move in. View of Responsible Officials: There is no disagreement with the audit finding. The Authority made necessary corrections and recoupment of HAP during the process of this audit.
Name(s) of the contact person(s) responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: 12/31/2025 2023-002 Housing Voucher Cluster – Assistance Listing No. 14.871/14.879 – Rent Reasonableness Recommendation: We recommend management to implement controls over the recertification and rent change process to ensure determination of reasonable rent is performed prior to processing of the move in. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Continue to perform quality control on files and note any pattern that develops for the same type of errors and take corrective action if a pattern develops. Name(s) of the contact person(s) responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: 12/31/2025
2022-003
FAC accepted this audit on September 27, 2023 — management decision was due March 27, 2024.
During our testing, we noted the Authority did not have adequate internal controls designed to ensure that eligibility requirements were being met. Questioned costs: None Context: Testing of 40 HCVP tenant files for eligibility standards revealed the following: 1. 2 file where the Authority was missing correct income calculations and/or verifications. Cause: The Authority does not have controls in place to ensure it is meeting eligibility requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. Repeat Finding: The finding is a repeat of a finding in the immediate prior year. Prior year finding number was 2021-003. Recommendation: We recommend that management increase the number of recertification?s reviewed on a monthly basis until they can ensure a majority of the files meet HUD's eligibility requirements. We also recommend that management identify the specialists responsible for the erroneous files and investigate whether findings represent a systemic problem or are limited to a few specialists. Additional training for housing specialists would also improve accuracy. View of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴2022 - 001 ? HCVP Eligibility Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Federal Award Identification Number and Year: OK002 (various funding increments active during period 1/1/22-12/31/22) Award Period: January 1, 2022 through December 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance. ? Other Matters. Criteria: As a condition of admission or continued occupancy, the PHA must require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.601 et seq., 5.609, 960.253, 960.255 and 960.259). 24 CFR section 960.259 states that for both family income examinations and reexaminations, the PHA must obtain and document in the family file third-party verification of: (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent. 24 CFR sections 5.601 et seq., and 24 CFR sections 960.253, 960.255, and 960.259 state that the Authority must determine income eligibility and calculate the tenant?s rent payment using the documentation from third-party verification in accordance with 24 CFR part 5, subpart F. 24 CFR sections 5.230, 5.609, and 960.259 state that as a condition of admission or continued occupancy, the Authority must require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that eligibility requirements were being met. Questioned costs: None Context: Testing of 40 HCVP tenant files for eligibility standards revealed the following: 1. 2 file where the Authority was missing correct income calculations and/or verifications. Cause: The Authority does not have controls in place to ensure it is meeting eligibility requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. Repeat Finding: The finding is a repeat of a finding in the immediate prior year. Prior year finding number was 2021-003. Recommendation: We recommend that management increase the number of recertification?s reviewed on a monthly basis until they can ensure a majority of the files meet HUD's eligibility requirements. We also recommend that management identify the specialists responsible for the erroneous files and investigate whether findings represent a systemic problem or are limited to a few specialists. Additional training for housing specialists would also improve accuracy. View of Responsible Officials: There is no disagreement with the audit finding.
Recommendation: We recommend that management increase the number of recertification?s reviewed on a monthly basis until they can ensure a majority of the files meet HUD s eligibility requirements. We also recommend that management identify the specialists responsible for the erroneous files and investigate whether findings represent a systemic problem or are limited to a few specialists. Additional training for housing specialists would also improve accuracy. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Three separate employees will quality control additional files monthly. Specialists have been identified and does not appear to be a systemic problem. Name(s) of the contact person(s) responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: 12/31/2023
2021-002
During our testing, we noted the Authority did not have adequate internal controls designed to ensure that eligibility requirements were being met. Questioned costs: None Context: During the testing of the Housing Choice Voucher Program tenant files, a compliance deficiency was noted on Failed Inspections. In one instance the housing authority failed to process abatement within regulatory period. Cause: The Authority does not have controls in place to ensure it is meeting inspection requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. Repeat Finding: The finding is a not repeat of a finding in the immediate prior year. Recommendation: We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. View of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴2022 - 002 ? HCVP Failed Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Federal Award Identification Number and Year: OK002 (various funding increments active during period 1/1/22-12/31/22) Award Period: January 1, 2022 through December 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance. ? Other Matters. Criteria: For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that eligibility requirements were being met. Questioned costs: None Context: During the testing of the Housing Choice Voucher Program tenant files, a compliance deficiency was noted on Failed Inspections. In one instance the housing authority failed to process abatement within regulatory period. Cause: The Authority does not have controls in place to ensure it is meeting inspection requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. Repeat Finding: The finding is a not repeat of a finding in the immediate prior year. Recommendation: We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. View of Responsible Officials: There is no disagreement with the audit finding.
Recommendation: We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Inspection staff has been directed to monitor abatement dates and forward to compliance to ensure payments are being abated correctly and timely. Name(s) of the contact person(s) responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: 12/31/2023
During our testing, we noted the Authority did not have adequate internal controls designed to ensure that rent reasonableness requirements were being met. Questioned costs: None Context: During the testing of the Housing Choice Voucher Program new tenant files, one instance was noted where the Housing Authority failed to perform a determination of reasonable rent prior to move in. Cause: The Authority does not have controls in place to ensure it is meeting inspection requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. Repeat Finding: The finding is a not repeat of a finding in the immediate prior year. Recommendation: We recommend management to designate one person to oversee the lease up process to ensure determination of reasonable rent is performed prior to processing of the move in. View of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴2022 - 003 ? HCVP Rent Reasonableness Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Federal Award Identification Number and Year: OK002 (various funding increments active during period 1/1/22-12/31/22) Award Period: January 1, 2022 through December 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance. ? Other Matters. Criteria: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract: (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a five percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that rent reasonableness requirements were being met. Questioned costs: None Context: During the testing of the Housing Choice Voucher Program new tenant files, one instance was noted where the Housing Authority failed to perform a determination of reasonable rent prior to move in. Cause: The Authority does not have controls in place to ensure it is meeting inspection requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. Repeat Finding: The finding is a not repeat of a finding in the immediate prior year. Recommendation: We recommend management to designate one person to oversee the lease up process to ensure determination of reasonable rent is performed prior to processing of the move in. View of Responsible Officials: There is no disagreement with the audit finding.
Recommendation: We recommend management to designate one person to oversee the lease up process to ensure determination of reasonable rent is performed prior to processing of the move in. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: HCV has one person overseeing the rent reasonableness prior to move ins. The finding is based on one file not having the rent reasonableness documentation for a special program, Single Room Occupancy, which is being corrected by signing a new MOU containing the rent reasonableness. Name(s) of the contact person(s) responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: 12/31/2023
FAC accepted this audit on September 29, 2022 — management decision was due March 29, 2023.
The Authority?s schedule of expenditures of federal awards (SEFA) did not include amounts expended by the Community Enhancement Corporation (CEC), a blended component unit, or amounts received and expended from the Federal Emergency Management Agency (FEMA). Questioned costs: Not able to determine Context: The Authority?s prepared SEFA was understated by $1,481,177 in the current year and $546,024 in the prior year. In prior year, the Authority did not record the FEMA monies in their financial statements or SEFA. Cause: The Authority does not have controls in place to ensure it is properly preparing the schedule of expenditure of federal awards. Effect: The Authority did not report accurate amounts on the SEFA. This could result in the omission of a major program and inaccurate reporting to the regulators. Recommendation: The Authority should review current procedures for preparing the SEFA to ensure that is accurately including all awards expended during the fiscal year for all federal programs to ensure compliance with Uniform Guidance. View of Responsible Officials: Management agrees with the finding. Cause: The Authority does not have controls in place to ensure it is meeting rent reasonableness standards set by HUD. Effect: The Authority is not in compliance with program requirements over rent reasonableness.
Show full finding ▾Hide full finding ▴Federal Agencies: U.S. Department of Housing and Urban Development, Department of Human Health Services, Department of Homeland Security Federal Program Titles: Section 8 Housing Assistance Payments Program / Supportive Housing Program / Block Grants for Treatment of Substance Abuse / Hazard Mitigation Grant Program Assistance Listing Numbers: 14.195 / 14.235 / 93.959 / 97.039 Federal Award Identification Number and Year: OK002 (various funding increments active during period 1/1/21-12/31/21) Award Period: January 1, 2021 through December 31, 2021 Type of Finding: ? Significant Deficiency in Internal Control over Compliance. ? Other Matters. Criteria: 2 CFR part 200.303 require that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Internal Control-Integrated Framework, published by the Committee of Sponsoring Organizations of the Treadway Commission, provides a framework for organizations to design, implement, and evaluate control that will facilitate compliance with the requirements of Federal laws, regulations, and program compliance requirements. 2 CFR Subpart D 200.302 (1) and 200.303 (a) stipulates that the auditee must identify, in its accounts, all Federal awards received and expended and the Federal programs under which they were received. Federal programs and award identification shall include, as applicable, the CFDA title and number, Federal award identification number and year, name of Federal agency, and name of the pass-through entity; establish and maintain effective internal control over Federal award that provides reasonable assurance that the auditee is managing Federal awards in compliance with Federal statutes, regulation, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Controller General of the United State and the "Internal Control Integrated Framework", issued by the Committee on Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Authority?s schedule of expenditures of federal awards (SEFA) did not include amounts expended by the Community Enhancement Corporation (CEC), a blended component unit, or amounts received and expended from the Federal Emergency Management Agency (FEMA). Questioned costs: Not able to determine Context: The Authority?s prepared SEFA was understated by $1,481,177 in the current year and $546,024 in the prior year. In prior year, the Authority did not record the FEMA monies in their financial statements or SEFA. Cause: The Authority does not have controls in place to ensure it is properly preparing the schedule of expenditure of federal awards. Effect: The Authority did not report accurate amounts on the SEFA. This could result in the omission of a major program and inaccurate reporting to the regulators. Recommendation: The Authority should review current procedures for preparing the SEFA to ensure that is accurately including all awards expended during the fiscal year for all federal programs to ensure compliance with Uniform Guidance. View of Responsible Officials: Management agrees with the finding. Cause: The Authority does not have controls in place to ensure it is meeting rent reasonableness standards set by HUD. Effect: The Authority is not in compliance with program requirements over rent reasonableness.
Schedule of Expenditures of Federal Awards (SEFA) Recommendation: The Authority should review current procedures for preparing the SEFA to ensure that is accurately including all awards expended during the fiscal year for all federal programs to ensure compliance with Uniform Guidance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Finance Department has reviewed current procedures for preparing the SEFA and has made adjustments to ensure that SEFA will include all awards expended during the year for all federal programs. Name(s) of the contact person(s) responsible for corrective action: Trish Bryant Planned completion date for corrective action plan: 12-31-22
During our testing, we noted the Authority did not have adequate internal controls designed to ensure that eligibility requirements were being met. Questioned costs: None Context: Testing of 40 HCVP tenant files for eligibility standards revealed the following: 1. 1 file where the Authority was unable to locate any documentation over the recertification / HUD-50058. 2. 2 files where documentation for income recorded on the HUD 50058 either did not agree to the supporting documentation or could not be located 3. 10 files where tenants were given allowances without proper verification or support 4. 6 files where the HUD form 9886 was not signed by all member of the household over 18 5. 3 files where the Release of Information form was unable to be located Cause: The Authority does not have controls in place to ensure it is meeting eligibility requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. Repeat Finding: The finding is a repeat of a finding in the immediate prior year. Prior year finding number was 2020-003. Recommendation: The Authority should implement processes to ensure that all proper documentation is being maintained during the recertification process for every tenant. View of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Federal Award Identification Number and Year: OK002 (various funding increments active during period 1/1/21-12/31/21) Award Period: January 1, 2021 through December 31, 2021 Type of Finding: ? Material Weakness in Internal Control over Compliance. ? Other Matters. Criteria: As a condition of admission or continued occupancy, the PHA must require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.601 et seq., 5.609, 960.253, 960.255 and 960.259). 24 CFR section 960.259 states that for both family income examinations and reexaminations, the PHA must obtain and document in the family file third-party verification of: (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent. 24 CFR sections 5.601 et seq., and 24 CFR sections 960.253, 960.255, and 960.259 state that the Authority must determine income eligibility and calculate the tenant?s rent payment using the documentation from third-party verification in accordance with 24 CFR part 5, subpart F. 24 CFR sections 5.230, 5.609, and 960.259 state that as a condition of admission or continued occupancy, the Authority must require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that eligibility requirements were being met. Questioned costs: None Context: Testing of 40 HCVP tenant files for eligibility standards revealed the following: 1. 1 file where the Authority was unable to locate any documentation over the recertification / HUD-50058. 2. 2 files where documentation for income recorded on the HUD 50058 either did not agree to the supporting documentation or could not be located 3. 10 files where tenants were given allowances without proper verification or support 4. 6 files where the HUD form 9886 was not signed by all member of the household over 18 5. 3 files where the Release of Information form was unable to be located Cause: The Authority does not have controls in place to ensure it is meeting eligibility requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. Repeat Finding: The finding is a repeat of a finding in the immediate prior year. Prior year finding number was 2020-003. Recommendation: The Authority should implement processes to ensure that all proper documentation is being maintained during the recertification process for every tenant. View of Responsible Officials: There is no disagreement with the audit finding.
Housing Voucher Cluster - Assistance Listing No. 14.871 / 14.879 - Recommendation: The Authority should implement processes to ensure that all proper documentation is being maintained during the recertification process for every tenant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Increase the number of documents that are required to be provided and signed through OCHA's online portal. Name(s) of the contact person(s) responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: 12-31-22
2020-003
During our testing, we noted the Authority overcharged management and bookkeeping fees to the HCV program. Questioned costs: $23,556 Context: During our testing, we noted the Authority included vouchers issued under the HCV CAREs program in its? calculation of fees charged to the non-CAREs HCV program, resulting in overcharging of fees. Cause: The Authority did not have controls in place to ensure they are charging allowable amounts of fee expenses to the federal programs. Effect: The Authority is not in compliance with program requirements. Recommendation: The Authority should review guidance on how to calculate fees charged to the federal programs. View of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Federal Award Identification Number and Year: OK002 (various funding increments active during period 1/1/21-12/31/21) Award Period: January 1, 2021 through December 31, 2021 Type of Finding: ? Significant Deficiency in Internal Control over Compliance. ? Other Matters. Criteria: HUD is required to publish a notice in the Federal Register that reflects the amount that can be claimed by PHAs administering the program. As of September 6, 2006, HUD has determined that, for PHAs that elect to use a fee-for-service methodology for their HCVPs (as allowed under 2 CFR Part 200, Subpart E), a management fee of up to 20 percent of the prorated administrative fee earned or up to $12 per unit month (PUM) per voucher leased, whichever is higher, is reasonable. PHAs also can charge the HCVP a bookkeeping fee of $7.50 PUM per voucher leased (see 71 FR 52710, HUD Notice ? Public Housing Operating Fund Program; Guidance on Implementation of Asset Management, September 6, 2006, Section VIII, which is available at https://portal.hud.gov/hudportal/documents/huddoc?id=fedregister5099-n-01.pdf (42 USC 1437f(q)(1)). Condition: During our testing, we noted the Authority overcharged management and bookkeeping fees to the HCV program. Questioned costs: $23,556 Context: During our testing, we noted the Authority included vouchers issued under the HCV CAREs program in its? calculation of fees charged to the non-CAREs HCV program, resulting in overcharging of fees. Cause: The Authority did not have controls in place to ensure they are charging allowable amounts of fee expenses to the federal programs. Effect: The Authority is not in compliance with program requirements. Recommendation: The Authority should review guidance on how to calculate fees charged to the federal programs. View of Responsible Officials: There is no disagreement with the audit finding.
Housing Voucher Cluster-Assistance Listing No. 14.871/14.879 - Management and Bookkeeping Fees Recommendation: The Authority should review guidance on how to calculate fees charged to the federal programs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Finance Department will review guidance, on a regular basis, on how to calculate fees charged to the federal programs. Name(s) of the contact person(s) responsible for corrective action: Trish Bryant Planned completion date for corrective action plan: 12-31-22
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Federal Award Identification Number and Year: OK002 (Various funding increments active during period 1/1/21-12/31/21) Award Period: January 1, 2021 through December 31, 2021 Type of Finding: ? Significant Deficiency in Internal Control over Compliance. ? Other Matters. Criteria: PHAs are required to enter into depository agreements with their financial institutions in the form required by HUD. The agreements serve as safeguards for federal funds and provide third-party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition / Context: During our testing, we noted the Authority did not have a depository agreement with its? financial institution in the form required by HUD. Questioned costs: None Cause: The Authority does not have controls in place to ensure it is meeting all requirements set by HUD. Effect: The Authority is not in compliance with program requirements. Recommendation: The Authority should obtain depository agreements for all bank accounts required by HUD. Repeat Finding: The finding is a repeat of a finding in the immediate prior year. Prior year finding number was 2020-004. View of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Federal Award Identification Number and Year: OK002 (Various funding increments active during period 1/1/21-12/31/21) Award Period: January 1, 2021 through December 31, 2021 Type of Finding: ? Significant Deficiency in Internal Control over Compliance. ? Other Matters. Criteria: PHAs are required to enter into depository agreements with their financial institutions in the form required by HUD. The agreements serve as safeguards for federal funds and provide third-party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition / Context: During our testing, we noted the Authority did not have a depository agreement with its? financial institution in the form required by HUD. Questioned costs: None Cause: The Authority does not have controls in place to ensure it is meeting all requirements set by HUD. Effect: The Authority is not in compliance with program requirements. Recommendation: The Authority should obtain depository agreements for all bank accounts required by HUD. Repeat Finding: The finding is a repeat of a finding in the immediate prior year. Prior year finding number was 2020-004. View of Responsible Officials: There is no disagreement with the audit finding.
Housing Voucher Cluster-Assistance Listing No. 14.871/14.879- Depository Agreements Recommendation: The Authority should obtain depository agreements for all bank accounts required by HUD. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Request for depository agreement has been sent to the bank and Finance Department is in process of completing necessary steps required to obtain the depository agreement. Name(s) of the contact person(s) responsible for corrective action: Trish Bryant Planned completion date for corrective action plan: 12-31-22
2020-004
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public and Indian Housing Assistance Listing Number: 14.850 Federal Award Identification Number and Year: OK002 (various funding increments active during period 1/1/21-12/31/21) Award Period: January 1, 2021 through December 31, 2021 Type of Finding: ? Significant Deficiency in Internal Control over Compliance. ? Other Matters. Criteria: PHAs are required to enter into depository agreements with their financial institutions in the form required by HUD. The agreements serve as safeguards for federal funds and provide third-party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition / Context: During our testing, we noted the Authority did not have a depository agreement with its? financial institution in the form required by HUD. Questioned costs: None Cause: The Authority does not have controls in place to ensure it is meeting all requirements set by HUD. Effect: The Authority is not in compliance with program requirements. Recommendation: The Authority should obtain depository agreements for all bank accounts required by HUD. View of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public and Indian Housing Assistance Listing Number: 14.850 Federal Award Identification Number and Year: OK002 (various funding increments active during period 1/1/21-12/31/21) Award Period: January 1, 2021 through December 31, 2021 Type of Finding: ? Significant Deficiency in Internal Control over Compliance. ? Other Matters. Criteria: PHAs are required to enter into depository agreements with their financial institutions in the form required by HUD. The agreements serve as safeguards for federal funds and provide third-party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition / Context: During our testing, we noted the Authority did not have a depository agreement with its? financial institution in the form required by HUD. Questioned costs: None Cause: The Authority does not have controls in place to ensure it is meeting all requirements set by HUD. Effect: The Authority is not in compliance with program requirements. Recommendation: The Authority should obtain depository agreements for all bank accounts required by HUD. View of Responsible Officials: There is no disagreement with the audit finding.
Housing Voucher Cluster - Public and Indian Housing -Assistance Listing No. 14.850 - Depository Agreement Recommendation: The Authority should obtain depository agreements for all bank accounts required by HUD. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Request for depository agreement has been sent to the bank and Finance Department is in process of completing necessary steps required to obtain the depository agreement. Name(s) of the contact person(s) responsible for corrective action: Trish Bryant Planned completion date for corrective action plan: 12-31-22
During our testing, we noted the Authority overcharged for property management, bookkeeping and asset management fees. Questioned costs: $176,718 Context: During our testing of fees charged to the public housing program, we noted: 1. The Authority overcharged property management, bookkeeping and asset management fees by $33,438 when multiplying units months leased by the allowed rate set by HUD for each fee. 2. The Authority charged an asset management fee on 4 AMPS that did not have excess cash from 2020 for a total of $143,280 Cause: The Authority did not have controls in place to ensure they are charging allowable amounts of fee expenses to the federal programs. Effect: The Authority is not in compliance with program requirements. Recommendation: The Authority should review guidance on how to calculate fees charged to the federal programs. View of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public and Indian Housing Assistance Listing Number: 14.850 Federal Award Identification Number and Year: OK002 (various funding increments active during period 1/1/21-12/31/21) Award Period: January 1, 2021 through December 31, 2021 Type of Finding: ? Significant Deficiency in Internal Control over Compliance. ? Other Matters. Criteria: The COCC may charge reasonable management fees. Management fees may include property management fees, program management fees, and bookkeeping fees. Fee reasonableness standards for the property management fee and bookkeeping fee are provided in sections 7.4 and 7.5 in the Supplement to HUD Handbook 7475.1. HUD considers any fees that are within HUD guidance to be reasonable. PHAs are requested to consult with HUD regarding any fees that depart from HUD guidance and HUD will provide its view on the reasonableness of the fees. Any fees above the HUD guidelines that have not been approved by HUD need to be reviewed in detail to determine if the additional costs are justified by local conditions or other factors (24 CFR section 990.280(b)(4)), including cost reasonableness guidance under 2 CFR Part 200. The COCC may charge a reasonable asset management fee to projects to fund the operations of the central office. HUD will generally consider an asset management fee charged to each project of $10 per unit month (PUM) as reasonable. Guidance on reasonableness standards for asset management fees is provided in sections 7.4 and 7.6 in the Supplement to HUD Handbook 7475.1. HUD considers any fees that are within HUD guidance to be reasonable. PHAs are requested to consult with HUD regarding any fees that depart from HUD guidance and HUD will provide its view on the reasonableness of the fees. Any fees above the HUD guidelines that have not been approved by HUD need to be reviewed in detail to determine if the additional costs are justified by local conditions or other factors (24 CFR section 990.280(b)(5)(ii)). The COCC must charge each project for indirect costs (expenses of the ?management company,? namely the COCC) using a fee-for-service approach. Each project shall be charged for the actual services received and only to the extent that such amounts are reasonable. The asset management fee and transfers of funds between projects (project fungibility) will be limited to the restrictions Compliance Supplement 2021 4-14.850-1 July 2021 Public and Indian Housing HUD made on excess cash. Excess cash will also be monitored as a compliance requirement after the first year of asset management. Condition: During our testing, we noted the Authority overcharged for property management, bookkeeping and asset management fees. Questioned costs: $176,718 Context: During our testing of fees charged to the public housing program, we noted: 1. The Authority overcharged property management, bookkeeping and asset management fees by $33,438 when multiplying units months leased by the allowed rate set by HUD for each fee. 2. The Authority charged an asset management fee on 4 AMPS that did not have excess cash from 2020 for a total of $143,280 Cause: The Authority did not have controls in place to ensure they are charging allowable amounts of fee expenses to the federal programs. Effect: The Authority is not in compliance with program requirements. Recommendation: The Authority should review guidance on how to calculate fees charged to the federal programs. View of Responsible Officials: There is no disagreement with the audit finding.
Public and Indian Housing -Assistance Listing No. 14.850 - Management and Bookkeeping Fees Recommendation: The Authority should review guidance on how to calculate fees charged to the federal programs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Finance Department will review guidance on how to calculate fees charged to the federal programs and will compare reports to those provided by Public Housing at the end of the year. Name(s) of the contact person(s) responsible for corrective action: Trish Bryant Planned completion date for corrective action plan: 12-31-22
FAC accepted this audit on June 15, 2022 — management decision was due December 15, 2022.
During our testing, we noted the Authority did not have adequate internal controls designed to ensure that HQS inspection requirements were being met. Questioned costs: None Context: Of the 60 failed HQS inspections we tested: -35 of the re-inspections were completed later than 30 days after the initial failed inspection and the Authority was unable to provide documentation of an extension. It is noted that most of the delays were between March 2020 and July 2020 due to the pandemic. -One inspection where HAP was not abated for a unit that did not pass inspection and the tenant had vacated the property. -One instance where there was no documentation that a unit ever passed inspection, HAP was abated or the tenant moved out. Of the 40 annual HQS inspections we tested, we noted that 2 out of 40 units were not inspected on a biennial basis. Cause: The Authority does not have controls in place to ensure it is meeting HQS requirements set by HUD. Effect: The Authority is not in compliance with program requirements over HQS Inspections. Repeat Finding: The finding is a repeat of a finding in the immediate prior year. Prior year finding number was 2019-003. Recommendation: The Authority should implement processes to ensure all HQS inspections are completed timely and there is proper documentation of approved extensions. View of Responsible Officials: Management agrees with the finding.
Show full finding ▾Hide full finding ▴Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Award Period: January 1, 2020 through December 31, 2020 Type of Finding: -Material Weakness in Internal Control over Compliance. -Other Matters. Criteria: For units under the HAP contract that fail to meet HQS, the Authority must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). The PHA must inspect the unit leased to a family at least annually (or biennially for OCHA) to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control reinspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that HQS inspection requirements were being met. Questioned costs: None Context: Of the 60 failed HQS inspections we tested: -35 of the re-inspections were completed later than 30 days after the initial failed inspection and the Authority was unable to provide documentation of an extension. It is noted that most of the delays were between March 2020 and July 2020 due to the pandemic. -One inspection where HAP was not abated for a unit that did not pass inspection and the tenant had vacated the property. -One instance where there was no documentation that a unit ever passed inspection, HAP was abated or the tenant moved out. Of the 40 annual HQS inspections we tested, we noted that 2 out of 40 units were not inspected on a biennial basis. Cause: The Authority does not have controls in place to ensure it is meeting HQS requirements set by HUD. Effect: The Authority is not in compliance with program requirements over HQS Inspections. Repeat Finding: The finding is a repeat of a finding in the immediate prior year. Prior year finding number was 2019-003. Recommendation: The Authority should implement processes to ensure all HQS inspections are completed timely and there is proper documentation of approved extensions. View of Responsible Officials: Management agrees with the finding.
Housing Voucher Cluster-ALN 14.871 / 14.879 -HQS Inspections Recommendation: The Authority should implement processes to ensure all HQS inspections are completed timely and there is proper documentation of approved extensions. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: OCHA has implemented procedures to document and approve extensions beyond 30 days, and have new software in place to allow inspections to be rescheduled immediately by the inspector. These new procedures were in place as of March 1, 2021. Name(s) of the contact person(s) responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: March 1, 2021
2019-003
During our testing, we noted the Authority did not have adequate internal controls designed to ensure that eligibility requirements were being met. Questioned costs: None Context: Testing of 40 HCVP tenant files for eligibility standards revealed that the Authority did not complete an annual recertification for one of the tenants timely. Cause: The Authority does not have controls in place to ensure it is meeting eligibility requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. Recommendation: The Authority should implement processes to ensure that recertifications are being performed annual for all tenants as applicable. View of Responsible Officials: Management agrees with the finding.
Show full finding ▾Hide full finding ▴Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Award Period: January 1, 2020 through December 31, 2020 Type of Finding: -Significant Deficiency in Internal Control over Compliance. -Other Matters. Criteria: As a condition of admission or continued occupancy, the PHA must require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.601 et seq., 5.609, 960.253, 960.255 and 960.259). 24 CFR section 960.259 states that for both family income examinations and reexaminations, the PHA must obtain and document in the family file third-party verification of: (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent. 24 CFR sections 5.601 et seq., and 24 CFR sections 960.253, 960.255, and 960.259 state that the Authority must determine income eligibility and calculate the tenant?s rent payment using the documentation from third-party verification in accordance with 24 CFR part 5, subpart F. 24 CFR sections 5.230, 5.609, and 960.259 state that as a condition of admission or continued occupancy, the Authority must require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that eligibility requirements were being met. Questioned costs: None Context: Testing of 40 HCVP tenant files for eligibility standards revealed that the Authority did not complete an annual recertification for one of the tenants timely. Cause: The Authority does not have controls in place to ensure it is meeting eligibility requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. Recommendation: The Authority should implement processes to ensure that recertifications are being performed annual for all tenants as applicable. View of Responsible Officials: Management agrees with the finding.
Housing Voucher Cluster - ALN 14.871/14.879 - Eligibility Recommendation: The Authority should implement processes to ensure that recertification's are being performed annual for all tenants as applicable. Explanation of disagreement with audit finding: There Is no disagreement with the audit finding. Action taken in response to finding: OCHA has implemented on-line recertification's which notifies staff when the recertification is complete or has failed to be completed resulting in staff following up with participants until recertification is complete. Name(s) of the contact person(s) responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: April 1, 2021
Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Award Period: January 1, 2020 through December 31, 2020 Type of Finding: -Significant Deficiency in Internal Control over Compliance. -Other Matters. Criteria: PHAs are required to enter into depository agreements with their financial institutions in the form required by HUD. The agreements serve as safeguards for federal funds and provide third-party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition / Context: During our testing, we noted the Authority did not have a depository agreement with its? financial institution in the form required by HUD. Questioned costs: None Cause: The Authority does not have controls in place to ensure it is meeting all requirements set by HUD. Effect: The Authority is not in compliance with program requirements. Recommendation: The Authority should obtain depository agreements for all bank accounts required by HUD. View of Responsible Officials: Management agrees with the finding.
Show full finding ▾Hide full finding ▴Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Award Period: January 1, 2020 through December 31, 2020 Type of Finding: -Significant Deficiency in Internal Control over Compliance. -Other Matters. Criteria: PHAs are required to enter into depository agreements with their financial institutions in the form required by HUD. The agreements serve as safeguards for federal funds and provide third-party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition / Context: During our testing, we noted the Authority did not have a depository agreement with its? financial institution in the form required by HUD. Questioned costs: None Cause: The Authority does not have controls in place to ensure it is meeting all requirements set by HUD. Effect: The Authority is not in compliance with program requirements. Recommendation: The Authority should obtain depository agreements for all bank accounts required by HUD. View of Responsible Officials: Management agrees with the finding.
Housing Voucher Cluster-ALN 14.871 / 14.879-Depository Agreement Recommendation: The Authority should obtain depository agreements for all bank accounts required by HUD. Explanation of disagreement with audit finding: There 1s no disagreement with the audit finding. Action taken in response to finding: The Authority will obtain the required depository agreement. Name(s) of the contact person(s) responsible for corrective action: Thomas Henderson Planned completion date for corrective action plan: August 1, 2022
FAC accepted this audit on March 25, 2021 — management decision was due September 25, 2021.
Of the 65 failed HQS inspections we tested, 64 of the inspections were completed later than 30 days and the Authority was not able to provide documentation of an extension. None of the inspections were completed later than 60 days. CauseLack: of internal controls over failed inspections. Effect: The Authority is not in compliance with program requirements. Questioned Costs: N/A Context/Sampling: N/A Repeat Finding from Prior Year: No Recommendation: The Authority should implement processes to ensure all failed inspections are completed timely and there is proper documentation of approved extensions. View of Responsible Officials: Management agrees with the finding.
Show full finding ▾Hide full finding ▴U. S. Department of Housing and Urban Development ? CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year ? Housing Choice Vouchers ? 2019 Special Tests and Provisions ? HQS Enforcement Significant Deficiency in Internal Control over Compliance Criteria: For units under the HAP contract that fail to meet HQS, the Authority must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. Condition: Of the 65 failed HQS inspections we tested, 64 of the inspections were completed later than 30 days and the Authority was not able to provide documentation of an extension. None of the inspections were completed later than 60 days. CauseLack: of internal controls over failed inspections. Effect: The Authority is not in compliance with program requirements. Questioned Costs: N/A Context/Sampling: N/A Repeat Finding from Prior Year: No Recommendation: The Authority should implement processes to ensure all failed inspections are completed timely and there is proper documentation of approved extensions. View of Responsible Officials: Management agrees with the finding.
Finding: 2019-003 Federal Agency Name: U.S. Department of Housing and Urban Development Program Name: Section 8 Housing Choice Vouchers CFDA # 14.871 Finding Summary: As part of their audit, Eide Bailly determined failed HQS inspections were either not completed within thirty (30) days or within an appropriately approved PHA approved inspection. Responsible Individuals: Richard Marshall, Leased Housing Director Corrective Action Plan: The Authority created procedures to properly document and approve extensions beyond thirty (30} days as permitted in the regulation. Any such extensions will be documented and approved by Leased Housing supervisors. Additionally, the Authority has contracted with a new software company that allows failed inspections to be rescheduled immediately by the inspector while in the field. These new procedures and software will allow the Authority to stay in compliance with program requirements. Anticipated Completion Date: New procedures and software were in place on March 1, 2021.
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