Audit 368292

Finding: Item 2024-001 – General Procurement Standards Material Weakness Federal Program – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number – 21.027 Federal Award Number – PJ1350-ARP35-CMF 20220466 and 2159FR0357 Federal Agency – U.S. Department of the Treasury Pass-Through Entities – Board of County Commissioners of Tulsa County and City of Tulsa Criteria: Per 2 CFR §200.318(a), non-Federal entities must use documented procurement procedures consistent with applicable laws and regulations, and the standards set forth in the Uniform Guidance. Condition/context: The Organization did not have written procurement policies in place during the audit period. The Organization has an informal procurement process. We tested the two vendors for which expenditures exceeded the micro-purchases limit, as defined by 2 CFR §200.320(a)(1). For one of the vendors, expenditures totaled $52,477, and there was no documentation that price or rate quotations were obtained from an adequate number of qualified sources. Cause: The Organization had not developed or adopted written procurement policies. Effect: Without written procurement policies, there is an increased risk of noncompliance with Federal procurement standards, inconsistent procurement practices, and potential misuse of federal funds. Questioned cost: $52,477 Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization develop and implement written procurement policies that comply with 2 CFR §200.318, 2 CFR §200.318(c) and other applicable procurement standards. These policies should be communicated to relevant staff and incorporated into procurement practices. View of responsible officials: Management's response is reported in "Corrective Action Plan" at the end of this report.

Finding: Item 2024-002 – Special Tests and Provisions – Housing Quality Standards Federal Program – Housing Opportunities for Persons with AIDS (HOPWA) Assistance Listing Number –14.241 Federal Award Number – FR-6400-N-11; OKH24F999; 2559FR0045 Federal Agency – U.S. Department of Housing and Urban Development Pass-Through Entities – Oklahoma Housing Finance Agency and City of Tulsa Criteria: Per 2 CFR 200, Appendix XI Compliance Supplement and 24 CFR §574.310 (b)(1)-(2), all housing units supported through acquisition, rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based rental assistance, and operating costs must meet applicable housing quality standards. These standards require that units be inspected to ensure compliance with health and safety requirements. Condition/context: One of eight units tested did not have a physical inspection performed within the required 12-month period. No documentation was available to support that the unit met housing quality standards during the audit period. Cause: The Organization uses a tracking system to monitor inspection due dates; however, if a unit is unavailable at the time of scheduled inspection, there may be a month delay before the inspection is reattempted. Effect: Failure to conduct timely inspections increases the risk that housing units may not meet required health and safety standards, potentially compromising the well-being of program beneficiaries and resulting in noncompliance with Federal requirements. Questioned cost: Not applicable. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization utilize its tracking system to more frequently revisit units that were initially unavailable or non-responsive. View of responsible officials: Management's response is reported in "Corrective Action Plan" at the end of this report.