FAC Explorer

Audit 291312

FY End
2021-06-30
Total Expended
$96.74M
Findings
10
Programs
8
Organization: Housing Authority of the Birmingham District (AL)
Year: 2021 Accepted: 2024-02-20
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
369779 2021-002 Significant Deficiency - N
369780 2021-002 Significant Deficiency - N
369781 2021-002 Significant Deficiency - N
369782 2021-002 Significant Deficiency - N
369783 2021-002 Significant Deficiency - N
946221 2021-002 Significant Deficiency - N
946222 2021-002 Significant Deficiency - N
946223 2021-002 Significant Deficiency - N
946224 2021-002 Significant Deficiency - N
946225 2021-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.872 Public Housing Capital Fund $14.43M - 0
14.850 Public and Indian Housing $4.75M - 0
14.877 Public Housing Family Self-Sufficiency Under Resident Opportunity and Supportive Services $259,402 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $225,091 - 0
14.195 Section 8 Housing Assistance Payments Program $149,277 - 0
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $96,740 - 0
14.871 Section 8 Housing Choice Vouchers $36,400 Yes 1
14.879 Mainstream Vouchers $11,205 Yes 1

Contacts

Name Title Type
K3S3C1WXVFA7 Melanie Baker Auditee
2058641492 Lance Schmidt Auditor
No contacts on file

Notes to SEFA

Title: PROGRAM REVENUE AND EXPENSES Accounting Policies: The Schedule of Expenditures of Federal Awards includes the federal award activity of the Authority under programs of the federal government for the year ended June 30, 2021. The information on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of operations of the Authority, it is not intended to and does not present the financial net position, changes in net position, or cash flows of the Authority. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For loans, the value of noncash awards expended is equal to the amount of loan proceeds expended plus the year-end balance of loans from previous years for which the federal government imposes continuing compliance requirements. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Housing Choice Voucher Cluster The Authority received $47,318,955 in federal funding for the Section 8 Housing Choice Voucher Program (ALN 14.871), HCV – CARES Act Funding (14.HCC), Mainstream Voucher (ALN 14.879), Emergency Housing Vouchers (ALN 14.871), Program and Mainstream – CARES Act Funding (14.MSC) during the year. The Authority reported $45,902,448 in expenses on a full accrual basis for the Housing Choice Voucher Cluster during the year, which were paid with federal and non-federal funds. The Authority did not report any Port-In expenses during the fiscal year. Public and Indian Housing The Authority received $34,269,985 in federal funding for the Public and Indian Housing Program (ALN 14.850) and Public Housing – CARES Act Funding (ALN 14.PHC) during the year. The Authority reported $47,547,701 in expenses on a full accrual basis for the Public and Indian Housing Program during the year. Expenses were paid for by current year HUD funding, tenant rent, other sources of Public Housing revenue, and prior year reserves.

Finding Details

Finding 2021-002
Federal agency: Housing and Urban Development Federal program titles: Housing Voucher Cluster Assistance Listing Number: 14.Vouch Federal Award Identification Number and Year: AL001, 2021 Award Period: 7/1/2020 – 6/30/2021 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Condition: During the testing we noted three instances where the Authority did not properly abate an assistance payment after the second failed inspection. In addition, the tenants passed inspection reports and dates were missing and, therefore, could not verify if the payments were properly abated for those units. Questioned costs: $8,410 Criteria or specific requirement: For units under contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Context: There were 40 tenants tested in a statically valid sample. Of the 40 tenants, three inspections contained exceptions from the prescribed controls resulting in noncompliance. Effect: If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Cause: The Authority had staffing issues during the year and failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Repeat Finding: No Recommendation: The Authority should implement additional controls related to monitoring timelines and review and retention of tenant’s inspection. The support of abatement, inspection results should be kept in the tenant file or centralized location. We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Views of responsible officials: There is no disagreement.
Finding 2021-002
Federal agency: Housing and Urban Development Federal program titles: Housing Voucher Cluster Assistance Listing Number: 14.Vouch Federal Award Identification Number and Year: AL001, 2021 Award Period: 7/1/2020 – 6/30/2021 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Condition: During the testing we noted three instances where the Authority did not properly abate an assistance payment after the second failed inspection. In addition, the tenants passed inspection reports and dates were missing and, therefore, could not verify if the payments were properly abated for those units. Questioned costs: $8,410 Criteria or specific requirement: For units under contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Context: There were 40 tenants tested in a statically valid sample. Of the 40 tenants, three inspections contained exceptions from the prescribed controls resulting in noncompliance. Effect: If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Cause: The Authority had staffing issues during the year and failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Repeat Finding: No Recommendation: The Authority should implement additional controls related to monitoring timelines and review and retention of tenant’s inspection. The support of abatement, inspection results should be kept in the tenant file or centralized location. We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Views of responsible officials: There is no disagreement.
Finding 2021-002
Federal agency: Housing and Urban Development Federal program titles: Housing Voucher Cluster Assistance Listing Number: 14.Vouch Federal Award Identification Number and Year: AL001, 2021 Award Period: 7/1/2020 – 6/30/2021 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Condition: During the testing we noted three instances where the Authority did not properly abate an assistance payment after the second failed inspection. In addition, the tenants passed inspection reports and dates were missing and, therefore, could not verify if the payments were properly abated for those units. Questioned costs: $8,410 Criteria or specific requirement: For units under contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Context: There were 40 tenants tested in a statically valid sample. Of the 40 tenants, three inspections contained exceptions from the prescribed controls resulting in noncompliance. Effect: If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Cause: The Authority had staffing issues during the year and failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Repeat Finding: No Recommendation: The Authority should implement additional controls related to monitoring timelines and review and retention of tenant’s inspection. The support of abatement, inspection results should be kept in the tenant file or centralized location. We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Views of responsible officials: There is no disagreement.
Finding 2021-002
Federal agency: Housing and Urban Development Federal program titles: Housing Voucher Cluster Assistance Listing Number: 14.Vouch Federal Award Identification Number and Year: AL001, 2021 Award Period: 7/1/2020 – 6/30/2021 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Condition: During the testing we noted three instances where the Authority did not properly abate an assistance payment after the second failed inspection. In addition, the tenants passed inspection reports and dates were missing and, therefore, could not verify if the payments were properly abated for those units. Questioned costs: $8,410 Criteria or specific requirement: For units under contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Context: There were 40 tenants tested in a statically valid sample. Of the 40 tenants, three inspections contained exceptions from the prescribed controls resulting in noncompliance. Effect: If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Cause: The Authority had staffing issues during the year and failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Repeat Finding: No Recommendation: The Authority should implement additional controls related to monitoring timelines and review and retention of tenant’s inspection. The support of abatement, inspection results should be kept in the tenant file or centralized location. We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Views of responsible officials: There is no disagreement.
Finding 2021-002
Federal agency: Housing and Urban Development Federal program titles: Housing Voucher Cluster Assistance Listing Number: 14.Vouch Federal Award Identification Number and Year: AL001, 2021 Award Period: 7/1/2020 – 6/30/2021 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Condition: During the testing we noted three instances where the Authority did not properly abate an assistance payment after the second failed inspection. In addition, the tenants passed inspection reports and dates were missing and, therefore, could not verify if the payments were properly abated for those units. Questioned costs: $8,410 Criteria or specific requirement: For units under contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Context: There were 40 tenants tested in a statically valid sample. Of the 40 tenants, three inspections contained exceptions from the prescribed controls resulting in noncompliance. Effect: If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Cause: The Authority had staffing issues during the year and failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Repeat Finding: No Recommendation: The Authority should implement additional controls related to monitoring timelines and review and retention of tenant’s inspection. The support of abatement, inspection results should be kept in the tenant file or centralized location. We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Views of responsible officials: There is no disagreement.
Finding 2021-002
Federal agency: Housing and Urban Development Federal program titles: Housing Voucher Cluster Assistance Listing Number: 14.Vouch Federal Award Identification Number and Year: AL001, 2021 Award Period: 7/1/2020 – 6/30/2021 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Condition: During the testing we noted three instances where the Authority did not properly abate an assistance payment after the second failed inspection. In addition, the tenants passed inspection reports and dates were missing and, therefore, could not verify if the payments were properly abated for those units. Questioned costs: $8,410 Criteria or specific requirement: For units under contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Context: There were 40 tenants tested in a statically valid sample. Of the 40 tenants, three inspections contained exceptions from the prescribed controls resulting in noncompliance. Effect: If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Cause: The Authority had staffing issues during the year and failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Repeat Finding: No Recommendation: The Authority should implement additional controls related to monitoring timelines and review and retention of tenant’s inspection. The support of abatement, inspection results should be kept in the tenant file or centralized location. We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Views of responsible officials: There is no disagreement.
Finding 2021-002
Federal agency: Housing and Urban Development Federal program titles: Housing Voucher Cluster Assistance Listing Number: 14.Vouch Federal Award Identification Number and Year: AL001, 2021 Award Period: 7/1/2020 – 6/30/2021 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Condition: During the testing we noted three instances where the Authority did not properly abate an assistance payment after the second failed inspection. In addition, the tenants passed inspection reports and dates were missing and, therefore, could not verify if the payments were properly abated for those units. Questioned costs: $8,410 Criteria or specific requirement: For units under contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Context: There were 40 tenants tested in a statically valid sample. Of the 40 tenants, three inspections contained exceptions from the prescribed controls resulting in noncompliance. Effect: If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Cause: The Authority had staffing issues during the year and failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Repeat Finding: No Recommendation: The Authority should implement additional controls related to monitoring timelines and review and retention of tenant’s inspection. The support of abatement, inspection results should be kept in the tenant file or centralized location. We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Views of responsible officials: There is no disagreement.
Finding 2021-002
Federal agency: Housing and Urban Development Federal program titles: Housing Voucher Cluster Assistance Listing Number: 14.Vouch Federal Award Identification Number and Year: AL001, 2021 Award Period: 7/1/2020 – 6/30/2021 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Condition: During the testing we noted three instances where the Authority did not properly abate an assistance payment after the second failed inspection. In addition, the tenants passed inspection reports and dates were missing and, therefore, could not verify if the payments were properly abated for those units. Questioned costs: $8,410 Criteria or specific requirement: For units under contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Context: There were 40 tenants tested in a statically valid sample. Of the 40 tenants, three inspections contained exceptions from the prescribed controls resulting in noncompliance. Effect: If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Cause: The Authority had staffing issues during the year and failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Repeat Finding: No Recommendation: The Authority should implement additional controls related to monitoring timelines and review and retention of tenant’s inspection. The support of abatement, inspection results should be kept in the tenant file or centralized location. We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Views of responsible officials: There is no disagreement.
Finding 2021-002
Federal agency: Housing and Urban Development Federal program titles: Housing Voucher Cluster Assistance Listing Number: 14.Vouch Federal Award Identification Number and Year: AL001, 2021 Award Period: 7/1/2020 – 6/30/2021 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Condition: During the testing we noted three instances where the Authority did not properly abate an assistance payment after the second failed inspection. In addition, the tenants passed inspection reports and dates were missing and, therefore, could not verify if the payments were properly abated for those units. Questioned costs: $8,410 Criteria or specific requirement: For units under contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Context: There were 40 tenants tested in a statically valid sample. Of the 40 tenants, three inspections contained exceptions from the prescribed controls resulting in noncompliance. Effect: If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Cause: The Authority had staffing issues during the year and failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Repeat Finding: No Recommendation: The Authority should implement additional controls related to monitoring timelines and review and retention of tenant’s inspection. The support of abatement, inspection results should be kept in the tenant file or centralized location. We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Views of responsible officials: There is no disagreement.
Finding 2021-002
Federal agency: Housing and Urban Development Federal program titles: Housing Voucher Cluster Assistance Listing Number: 14.Vouch Federal Award Identification Number and Year: AL001, 2021 Award Period: 7/1/2020 – 6/30/2021 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Condition: During the testing we noted three instances where the Authority did not properly abate an assistance payment after the second failed inspection. In addition, the tenants passed inspection reports and dates were missing and, therefore, could not verify if the payments were properly abated for those units. Questioned costs: $8,410 Criteria or specific requirement: For units under contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Context: There were 40 tenants tested in a statically valid sample. Of the 40 tenants, three inspections contained exceptions from the prescribed controls resulting in noncompliance. Effect: If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Cause: The Authority had staffing issues during the year and failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Repeat Finding: No Recommendation: The Authority should implement additional controls related to monitoring timelines and review and retention of tenant’s inspection. The support of abatement, inspection results should be kept in the tenant file or centralized location. We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Views of responsible officials: There is no disagreement.