Finding Text
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.