Audit 345887

Criteria - The Authority must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control reinspections. The Authority must also prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition - During the audit period, it was found that two (out of 40 tested) HCV program tenants did not receive the required HQS inspections within the stipulated time frame. Cause - The failure to conduct HQS inspections was primarily due to staff turnover causing mismanagement of the inspection schedule. Effect - Non-compliance with the HQS inspection requirements poses significant risks, including, potential health and safety hazards for tenants residing in non-inspected units; Exposure to financial penalties or sanctions from HUD due to non-adherence to federal regulation; undermining the integrity and effectiveness of the HCV program in providing safe and suitable housing. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs - None identified. Repeat Finding - This was not a repeat finding. Recommendation - We recommend that the Authority consider the following correct actions: 1) Immediately conduct the missed HQS inspections for the affected tenants. 2) Implement a robust tracking and reminder system to ensure timely scheduling and completion of future HQS inspections. 3) Provide comprehensive training to staff on the importance of HQS compliance and the processes involved in scheduling and conducting inspections. 4) Establish regular oversight mechanisms to monitor compliance with HQS inspection requirements and take corrective actions as needed. Management’s Response - (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation, please see below for action. (b) Action taken - The Authority will strengthen internal controls and training of staff to ensure compliance deadlines are met. (c) Planned implementation date - The Authority expects to complete the corrective actions by June 30, 2025.

Criteria - According to 24 CFR Part 982.517, Authorities are required to establish and maintain an updated Utility Allowance Schedule. This schedule must be reviewed at least annually and adjusted to reflect any changes in utility rates and consumption patterns that affect program participants. Condition - The Authority has not completed or updated its Utility Allowance Schedule within the last year, failing to adhere to the annual review and adjustment requirement set forth by HUD. Cause - The lack of an updated Utility Allowance Schedule is due to insufficient administrative processes or oversight. The responsible staff was not aware of the timelines or the necessity for annual updates. Effect - Participants in the HCV Program may be incurring utility costs that exceed the allowances provided, adversely affecting the affordability of their housing. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs - None identified. Repeat Finding - This was not a repeat finding. Recommendation - We recommend that the Authority consider the following correct actions: 1) Conduct an immediate review and update of the Utility Allowance Schedule to accurately reflect current utility costs and consumption patterns. 2) Implement a robust annual review process with clear timelines and responsibilities to ensure compliance moving forward. 3) Provide comprehensive training to involved staff regarding the importance of maintaining an updated utility allowance schedule and the regulatory requirements. Management’s Response - (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation, please see below for action. (b) Action taken - The Authority will strengthen internal controls and training of staff to ensure compliance deadlines are met. (c) Planned implementation date - The Authority expects to complete the corrective actions by June 30, 2025.

Criteria - The Authority must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control reinspections. The Authority must also prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition - During the audit period, it was found that two (out of 40 tested) HCV program tenants did not receive the required HQS inspections within the stipulated time frame. Cause - The failure to conduct HQS inspections was primarily due to staff turnover causing mismanagement of the inspection schedule. Effect - Non-compliance with the HQS inspection requirements poses significant risks, including, potential health and safety hazards for tenants residing in non-inspected units; Exposure to financial penalties or sanctions from HUD due to non-adherence to federal regulation; undermining the integrity and effectiveness of the HCV program in providing safe and suitable housing. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs - None identified. Repeat Finding - This was not a repeat finding. Recommendation - We recommend that the Authority consider the following correct actions: 1) Immediately conduct the missed HQS inspections for the affected tenants. 2) Implement a robust tracking and reminder system to ensure timely scheduling and completion of future HQS inspections. 3) Provide comprehensive training to staff on the importance of HQS compliance and the processes involved in scheduling and conducting inspections. 4) Establish regular oversight mechanisms to monitor compliance with HQS inspection requirements and take corrective actions as needed. Management’s Response - (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation, please see below for action. (b) Action taken - The Authority will strengthen internal controls and training of staff to ensure compliance deadlines are met. (c) Planned implementation date - The Authority expects to complete the corrective actions by June 30, 2025.

Criteria - According to 24 CFR Part 982.517, Authorities are required to establish and maintain an updated Utility Allowance Schedule. This schedule must be reviewed at least annually and adjusted to reflect any changes in utility rates and consumption patterns that affect program participants. Condition - The Authority has not completed or updated its Utility Allowance Schedule within the last year, failing to adhere to the annual review and adjustment requirement set forth by HUD. Cause - The lack of an updated Utility Allowance Schedule is due to insufficient administrative processes or oversight. The responsible staff was not aware of the timelines or the necessity for annual updates. Effect - Participants in the HCV Program may be incurring utility costs that exceed the allowances provided, adversely affecting the affordability of their housing. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs - None identified. Repeat Finding - This was not a repeat finding. Recommendation - We recommend that the Authority consider the following correct actions: 1) Conduct an immediate review and update of the Utility Allowance Schedule to accurately reflect current utility costs and consumption patterns. 2) Implement a robust annual review process with clear timelines and responsibilities to ensure compliance moving forward. 3) Provide comprehensive training to involved staff regarding the importance of maintaining an updated utility allowance schedule and the regulatory requirements. Management’s Response - (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation, please see below for action. (b) Action taken - The Authority will strengthen internal controls and training of staff to ensure compliance deadlines are met. (c) Planned implementation date - The Authority expects to complete the corrective actions by June 30, 2025.