At the request of HUD, we audited Green River Management, Inc., (Green River) which managed the Housing Authorities of the City of Konawa, City of Langston, City of Pauls Valley, City of Wynnewood, Town of Cheyenne, and Caddo Electric Cooperative. Our objective was to determine whether the housing authorities appropriately procured Green River as their management agent, maintained properties, and carried out their financial responsibilities in accordance with HUD rules and regulations and their policies and procedures.

Our audit disclosed that the housing authorities did not procure its management agent contracts. Also, the housing authorities did not use more than $199,000 in accordance with requirements and unnecessarily paid a commissioner of Konawa $5,858 as an insurance agent when they could have purchased the insurance directly from the company. Further, Langston did not maintain its units in good condition or manage certain aspects of its operations in accordance with requirements. As a result, between January 2005 and March 2007, the housing authorities misspent $205,174. In addition, the housing authorities can put $84,332 to better use by reprocuring the management agent contracts.

We recommended that the Oklahoma City public housing program center coordinator to require: (1) the housing authorities to reprocure its management agent contracts; (2) Langston to correct is physical conditions and implement procedures to ensure its units are maintained in a decent, safe, and sanitary conditions; (3) the housing authorities to support or repay a total of $205,174; and (4) the housing authorities to comply with HUD and state requirements.