Audit 350086

Finding 2024 - 002 - Section 8 HQS Inspection Deficiencies Housing Choice Vouchers - CFDA No. 14.871; Grant period - year ended June 30, 2024 Cause: Lack of controls over compliance with HUD regulations and turnover of staff. Effect: Non-compliance with HUD regulations. Questioned Costs: None Identified. Repeat Finding: No Recommendation: We recommend the Authority should continue to strengthen its internal controls in relation to the HQS inspection and re-inspection process to ensure that they are completed within the required timeframe to meet the HUD compliance requirements. Management’s Response to Finding: The Authority is continuing to work on the procedures for failed inspections to ensure that the reinspections are performed within the 30-day requirement. The Authority is also planning on additional training for employees to make sure they are qualified to meet the HQS reinspection requirements. Responsible Party: Matthew McClammey, Executive Director, (334)745-4171. Anticipated Completion Date: June 30, 2025.

Finding 2024 - 003 - Housing Choice Vouchers Tenant Files Housing Choice Vouchers - CFDA No. 14.871; Grant period - year ended June 30, 2024 Criteria: The Code of Federal Regulations and HUD guidelines give the requirements for maintaining the tenant files for the Public Housing and Housing Choice programs. Specifically, HUD regulations CFR Parts 982.305 and 982.405 require Authorities to inspect units leased under the HCV program at the time of initial leasing and at least annually thereafter to ensure the units meet HQS. In addition, 24 CFR Part 960.253 gives the requirements for choice of rent and use of utility allowances. Also, the Authority’s policy and procedure dictate full compliance with these regulations, as well as guidelines to be followed in maintaining these files. Condition & Perspective: A current year review of 40 tenant files revealed a situation of continued errors and omissions in most of the files that leads to incomplete tenant documentation. The results of the review are as follows: 1. Of the 40 tenant files reviewed, 2 did not contain a signed HUD Form 9886. 2. Of the 40 tenant files reviewed, 3 did not have a HUD Form 52517. 3. Of the 40 tenant files reviewed, 4 did had not complied with HQS guidelines. Cause: Lack of controls over compliance with HUD regulations and turnover of staff. Effect: Non-compliance with HUD regulations. Questioned Costs: None Identified Repeat Finding: No Recommendation: We recommend that the Authority utilize a standard filing system based upon a checklist and issue this to all required personnel. We recommend that supervisors and managers review on a monthly basis a random sample of all files to determine compliance with federal guidelines and the Authority’s policy. Management’s Response to Finding: The Authority will work on strengthening its internal controls to correct this situation and ensure that they will be in compliance with the federal guidelines and the Authority’s policies. Responsible Party: Matthew McClammey, Executive Director, (334)745-4171. Anticipated Completion Date: June 30, 2025.

Finding 2024-004 - HUD Comprehensive Review, Section 8 Housing Choice Voucher Program – CFDA No. 14.871; Grant period – year ended June 30, 2024 Criteria: The Housing Choice Voucher Program Guidebook and other HUD PIH Notices and Handbooks provide requirements and guidance for which the Section 8 Housing Choice Voucher Program is to be administered and operated under. Condition and Perspective: In May of 2023, HUD conducted a Comprehensive Review of the Housing Authority’s Section 8 Housing Choice Vouchers Program. The results of the Review included the following Findings: Finding #1 – Board Resolution not established to confirm Board Meeting Dates and Times. Finding #2 - The OHA Board does not have a Resident Assisted Board Member. Finding #3 – The OHA’s procurement policy is not in compliance with the current federal procurement requirements. Finding #4 – The Authority does not have an original general depository agreement on file. Finding #5 – The Authority does not have a cost allocation policy or cost allocation plan to show whose activities support multiple programs worked or shared costs among programs and projects. Finding #6 – The Authority made $598 in bonus payments for retired employees with HCV funding. Finding #7 – The Authority failed to provide evidence of how it targets the Authority’s population to meet new admissions at or below 30% AMI. Finding #8 – The Authority has outstanding HCV payments. The Authority does not have repayment agreements for outstanding balances. Finding #9 – The Authority has tenant file errors.

Finding 2024 - 002 - Section 8 HQS Inspection Deficiencies Housing Choice Vouchers - CFDA No. 14.871; Grant period - year ended June 30, 2024 Cause: Lack of controls over compliance with HUD regulations and turnover of staff. Effect: Non-compliance with HUD regulations. Questioned Costs: None Identified. Repeat Finding: No Recommendation: We recommend the Authority should continue to strengthen its internal controls in relation to the HQS inspection and re-inspection process to ensure that they are completed within the required timeframe to meet the HUD compliance requirements. Management’s Response to Finding: The Authority is continuing to work on the procedures for failed inspections to ensure that the reinspections are performed within the 30-day requirement. The Authority is also planning on additional training for employees to make sure they are qualified to meet the HQS reinspection requirements. Responsible Party: Matthew McClammey, Executive Director, (334)745-4171. Anticipated Completion Date: June 30, 2025.

Finding 2024 - 003 - Housing Choice Vouchers Tenant Files Housing Choice Vouchers - CFDA No. 14.871; Grant period - year ended June 30, 2024 Criteria: The Code of Federal Regulations and HUD guidelines give the requirements for maintaining the tenant files for the Public Housing and Housing Choice programs. Specifically, HUD regulations CFR Parts 982.305 and 982.405 require Authorities to inspect units leased under the HCV program at the time of initial leasing and at least annually thereafter to ensure the units meet HQS. In addition, 24 CFR Part 960.253 gives the requirements for choice of rent and use of utility allowances. Also, the Authority’s policy and procedure dictate full compliance with these regulations, as well as guidelines to be followed in maintaining these files. Condition & Perspective: A current year review of 40 tenant files revealed a situation of continued errors and omissions in most of the files that leads to incomplete tenant documentation. The results of the review are as follows: 1. Of the 40 tenant files reviewed, 2 did not contain a signed HUD Form 9886. 2. Of the 40 tenant files reviewed, 3 did not have a HUD Form 52517. 3. Of the 40 tenant files reviewed, 4 did had not complied with HQS guidelines. Cause: Lack of controls over compliance with HUD regulations and turnover of staff. Effect: Non-compliance with HUD regulations. Questioned Costs: None Identified Repeat Finding: No Recommendation: We recommend that the Authority utilize a standard filing system based upon a checklist and issue this to all required personnel. We recommend that supervisors and managers review on a monthly basis a random sample of all files to determine compliance with federal guidelines and the Authority’s policy. Management’s Response to Finding: The Authority will work on strengthening its internal controls to correct this situation and ensure that they will be in compliance with the federal guidelines and the Authority’s policies. Responsible Party: Matthew McClammey, Executive Director, (334)745-4171. Anticipated Completion Date: June 30, 2025.

Finding 2024-004 - HUD Comprehensive Review, Section 8 Housing Choice Voucher Program – CFDA No. 14.871; Grant period – year ended June 30, 2024 Criteria: The Housing Choice Voucher Program Guidebook and other HUD PIH Notices and Handbooks provide requirements and guidance for which the Section 8 Housing Choice Voucher Program is to be administered and operated under. Condition and Perspective: In May of 2023, HUD conducted a Comprehensive Review of the Housing Authority’s Section 8 Housing Choice Vouchers Program. The results of the Review included the following Findings: Finding #1 – Board Resolution not established to confirm Board Meeting Dates and Times. Finding #2 - The OHA Board does not have a Resident Assisted Board Member. Finding #3 – The OHA’s procurement policy is not in compliance with the current federal procurement requirements. Finding #4 – The Authority does not have an original general depository agreement on file. Finding #5 – The Authority does not have a cost allocation policy or cost allocation plan to show whose activities support multiple programs worked or shared costs among programs and projects. Finding #6 – The Authority made $598 in bonus payments for retired employees with HCV funding. Finding #7 – The Authority failed to provide evidence of how it targets the Authority’s population to meet new admissions at or below 30% AMI. Finding #8 – The Authority has outstanding HCV payments. The Authority does not have repayment agreements for outstanding balances. Finding #9 – The Authority has tenant file errors.