Audit 297688

Finding 2023-001 U.S. Department of Housing and Urban Development (HUD) Housing Voucher Cluster/Section 8 Housing Choice Voucher – ALN 14.871 Special Tests and Provisions Condition: During our review of failed housing quality inspections completed by the Authority, we noted a lack of functioning internal controls with regards to the rent abatement process. Criteria: The Authority is required to follow up on all failed inspections within 30 days, or 24 hours for life threatening deficiencies. For any units who do not subsequently pass an inspection after the required time frame, the Authority is required to abate rent payments to the landlord in accordance with 24 CFR sections 982.158(d) and 982.404. Cause: The Authority’s internal controls and procedures in place did not ensure that the procedures were followed as required by HUD and the Uniform Guidance. A tenant was scheduled to port out and therefore no more rent was to be paid to the landlord. However, the tenant did not end up actually porting out, leading to a unique situation that was not addressed by the internal controls of the Authority. Effect: Rent was not abated for one unit whose deficiencies were not corrected in the required timeframe, which could result in unsafe housing for tenants. Failure to comply with grant requirements could jeopardize future funding. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement procedures to ensure that the appropriate procedures are followed when housing quality inspection deficiencies are not resolved in the required timeframe, as required by HUD. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding, see separate corrective action plan.

Finding 2023-001 U.S. Department of Housing and Urban Development (HUD) Housing Voucher Cluster/Section 8 Housing Choice Voucher – ALN 14.871 Special Tests and Provisions Condition: During our review of failed housing quality inspections completed by the Authority, we noted a lack of functioning internal controls with regards to the rent abatement process. Criteria: The Authority is required to follow up on all failed inspections within 30 days, or 24 hours for life threatening deficiencies. For any units who do not subsequently pass an inspection after the required time frame, the Authority is required to abate rent payments to the landlord in accordance with 24 CFR sections 982.158(d) and 982.404. Cause: The Authority’s internal controls and procedures in place did not ensure that the procedures were followed as required by HUD and the Uniform Guidance. A tenant was scheduled to port out and therefore no more rent was to be paid to the landlord. However, the tenant did not end up actually porting out, leading to a unique situation that was not addressed by the internal controls of the Authority. Effect: Rent was not abated for one unit whose deficiencies were not corrected in the required timeframe, which could result in unsafe housing for tenants. Failure to comply with grant requirements could jeopardize future funding. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement procedures to ensure that the appropriate procedures are followed when housing quality inspection deficiencies are not resolved in the required timeframe, as required by HUD. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding, see separate corrective action plan.