We recommend that the Program Center Coordinator, Office of Public Housing, Oklahoma City, OK, require the Authority to implement policies and procedures to monitor the EIV income discrepancy reports each quarter to minimize subsidy payment errors.

Reimburse its program $648 from non-Federal funds and use its internal control procedures to ensure that housing assistance payments are correctly calculated during the certification process to ensure that a $648 overpayment in program funds is appropriately used for future payments.

Reimburse the participants $84 from non-Federal funds for the underpayment of housing assistance.

Develop and implement an internal policy and procedure related to interim certifications to ensure that it obtains EIV reports and maintains those reports in participant files.

Develop and implement controls to minimize instances of overpayment and underpayment of housing assistance.

Reimburse NSP2 from non-Federal funds for the $59,523 in ineligible disbursements on the five vouchers.

Provide documentation to support that the $224,868 in NSP2 funds drawn down from the four vouchers was eligible or repay the program from non-Federal funds.

Provide documentation to support that the differences resulting from the payroll costs for the three vouchers, which netted $3,169, were offset in later drawdown vouchers or repay the program from non-Federal funds.

Review all administration drawdown vouchers and provide documentation to support that the drawdowns for estimated payroll costs are reconciled with the actual payroll costs for the pay periods. Any calculated overpayment by NSP should be returned to the program to meet program purposes.

Provide clearer guidance and instruction to PL 113-2 disaster grantees to assist them in establishing an effective internal audit activity.

Establish a recurring training and discussion forum among the PL 113-2 grantees and CPD that enables grantees to share ideas and receive guidance and information about CPD’s expectations regarding the internal audit requirement.

Reevaluate the feasibility of the two Section 108 activities that failed to meet a national objective and determine the eligibility of the $15,814,000 already invested. Any amount determined ineligible must be reimbursed to the program from non-Federal funds.

Require the borrowers to submit a plan for how they will proceed and use the $8,694,000 million in unused commitments to provide the intended benefits and meet program objectives.

Require the borrower to provide all supporting documentation and evaluate the allowability and eligibility of $75,000 used for the unauthorized activity. Any amount determined ineligible must be reimbursed to the program from non-Federal funds.

Develop procedures directing field offices to include the review of Section 108-funded activities when performing the annual reviews of Block Grant recipients.

Develop procedures to ensure that the information necessary to monitor program performance and compliance with program requirements is promptly provided to the field offices.

Implement procedures to ensure that borrowers comply with all loan contract provisions and that required documents are submitted, including bank agreements, monthly statements, and security documents. If a borrower does not provide evidence that it has complied with all program requirements, HUD must initiate appropriate remedial actions under paragraph 12 of the contract.

Develop and implement a tracking system for monitoring reviews of Section 108 loans.

Repay from nonfederal funds $27,818 to its Capital Funds program from non-Federal funds for the ineligible purchase of the truck and expenditure of 2013 funds before they were available.

Repay from nonfederal funds its HUD programs $7,446 for the executive director’s personal use of the Authority’s equipment, and amend the executive director’s prior Internal Revenue Forms W-2 to include the annual personal use of $5,888 as income.