FAC Explorer

Audit 321203

FY End
2023-12-31
Total Expended
$53.91M
Findings
12
Programs
9
Organization: Oklahoma City Housing Authority (OK)
Year: 2023 Accepted: 2024-09-26
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498490 2023-001 Significant Deficiency Yes E
498491 2023-001 Significant Deficiency Yes E
498492 2023-001 Significant Deficiency Yes E
498493 2023-002 Significant Deficiency Yes N
498494 2023-002 Significant Deficiency Yes N
498495 2023-002 Significant Deficiency Yes N
1074932 2023-001 Significant Deficiency Yes E
1074933 2023-001 Significant Deficiency Yes E
1074934 2023-001 Significant Deficiency Yes E
1074935 2023-002 Significant Deficiency Yes N
1074936 2023-002 Significant Deficiency Yes N
1074937 2023-002 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
14.850 Public Housing Operating Fund $14.27M - 0
14.872 Public Housing Capital Fund $6.85M - 0
14.879 Mainstream Vouchers $1.91M Yes 2
14.218 Community Development Block Grants/entitlement Grants $350,949 - 0
14.871 Section 8 Housing Choice Vouchers $292,660 Yes 2
14.870 Resident Opportunity and Supportive Services - Service Coordinators $110,587 - 0
14.896 Family Self-Sufficiency Program $54,611 - 0
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $25,965 - 0
14.239 Home Investment Partnerships Program $8,990 - 0

Contacts

Name Title Type
CBCMRLXMUWC1 Thomas Henderson Auditee
4056053231 Gaby Miller Auditor
No contacts on file

Notes to SEFA

Title: NOTE 3 HOUSING VOUCHER CLUSTER Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Schedule is reported on the accrual basis of accounting. The information in the Schedule is presented in accordance with the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. No federal financial assistance has been provided to subrecipients. NOTE 1 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Oklahoma City Housing Authority (the Authority), under programs of the federal government for the year ended December 31, 2023. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. The Schedule does not include federal expenditures for blended component unit, CEC. De Minimis Rate Used: N Rate Explanation: NOTE 4 The Authority has not elected to use the 10% de minimis cost rate and does not draw for indirect administrative expenses. In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Housing Voucher Cluster to be considered an expenditure for the purpose of this schedule. Therefore, the amount in this schedule is the total amount received directly from HUD and not the total expenditures paid by the Authority.
Title: NOTE 5 SEPARATELY AUDITED FEDERAL AWARDS Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Schedule is reported on the accrual basis of accounting. The information in the Schedule is presented in accordance with the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. No federal financial assistance has been provided to subrecipients. NOTE 1 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Oklahoma City Housing Authority (the Authority), under programs of the federal government for the year ended December 31, 2023. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. The Schedule does not include federal expenditures for blended component unit, CEC. De Minimis Rate Used: N Rate Explanation: NOTE 4 The Authority has not elected to use the 10% de minimis cost rate and does not draw for indirect administrative expenses. The Authority's blended component unit, CEC's federal awards were subject to a separate audit conducted in accordance with the Uniform Guidance. The results of this audit are not included in the Schedule of the Authority. CEC expended $1,185,031 in federal awards for the year ended December 31, 2023.

Finding Details

Finding 2023-001
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.
Finding 2023-001
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.
Finding 2023-001
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.
Finding 2023-002
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.
Finding 2023-002
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.
Finding 2023-002
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.
Finding 2023-001
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.
Finding 2023-001
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.
Finding 2023-001
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.
Finding 2023-002
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.
Finding 2023-002
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.
Finding 2023-002
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.