The Tulsa Housing Authority released its 2021 audit Tuesday, nearly four years after its original due date.
Findings revealed a lack of internal control over financial reporting and compliance, resulting in nearly $19,000 in questioned costs. The agency provides publicly-funded housing assistance to more than 13,000 Tulsans and operates 14 housing communities in the region.
Conducted by independent accounting firm CLA, the release — dated Jan. 14 — comes as THA seeks to make up ground on a multi-year audit backlog.
Ginny Hensley, the authority’s vice president of communications, told the Flyer they have increased capacity in their finance department to catch up on outstanding audits.
“Truly, like every resource has been thrown at this,” Hensley said, noting that work on the 2022 audit would begin soon.
NonDoc reported last April that THA aimed to complete the 2021, 2022 and 2023 audits in 2025.
But Hensley said issues with third-party vendors and staff turnover contributed to their inability to meet that goal. At the end of last year, its turnover rate was 34%, Barbara Abercrombie, THA’s senior vice president of administration, said Thursday.
Kim Holland, a board member who chairs the agency’s budget and audit committee, said they take THA’s financial stability and accountability “very seriously.”
“The completed 2021 audit provides evidence of the strong financial position of the agency and the deficiencies identified, which were directly related to the causes of the delayed audits, have been addressed and are non-recurring,” Holland said.
COVID and software issues
Among the issues outlined in the audit, CLA noted material transactions that were not recorded in the prior year along with financial statements that weren’t submitted in a timely manner.
THA officials said those delays reflect “capacity and system transition challenges, not financial reporting inaccuracies.”
“The authority has since strengthened its staffing structure and reporting processes to ensure timely future submissions,” the audit reads.
The audit looked at 40 files. In five of them, THA did not complete required annual examinations of family income and composition in a timely manner.
“As a result, housing assistance payments were made based on outdated information, leading to overpayments,” the audit reads.
CLA also noted that new contract rents were not implemented for one of the four buildings in which rent prices were examined.
THA officials said the approved rent increase for one of the four properties “was implemented four months later than the effective date.”
“This resulted in a loss of $5,685 in reimbursement to the property,” the housing organization said. Officials said once the error was identified, they made the necessary adjustments. They also stressed this only affected one property.
Additionally, CLA examined 40 tenant files out of 607 and found:
- One item couldn’t be tested, as THA could not locate the tenant file information.
- One item lacked sufficient backup to support reported medical expenses leading to improper calculation for rent payment.
- One item did not have a recertification performed annually.
Board members’ terms end without action
Four of the five board members responsible for overseeing the agency — Sheila Johnson-Brown, Lisa Albers, Rick Neal and Debra “DJ” Morrow Ingram — saw their terms expire Tuesday, the day of the audit’s public release.
Neal has announced his retirement from the board. He gaveled into a meeting for the final time Jan. 15, transferring his chairmanship to Morrow Ingram.
Mayor Monroe Nichols has yet to announce new board members or reappointments. Board members serve three-year terms.
Michelle Brooks, a city spokesperson, told the Flyer Jan. 5 that the “mayor’s team is working on plans for THA.”
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