FAC Explorer

Audit 386135

FY End
2025-06-30
Total Expended
$8.44M
Findings
1
Programs
2
Organization: Housing Authority of Hopkinsville (KY)
Year: 2025 Accepted: 2026-02-09
Auditor: SMITH MARION & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1172804 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $8.37M Yes 1
10.565 COMMODITY SUPPLEMENTAL FOOD PROGRAM $68,361 Yes 0

Contacts

Name Title Type
XBGJXWY4YMT3 Lindsey Nee Auditee
2708874275 Chad Porter Auditor
No contacts on file

Notes to SEFA

The accompanying schedule presents the expenditures incurred (and related awards received) by Housing Authority of Hopkinsville (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance awards. For the purpose of this schedule, only the portion of the program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule.
The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements.
The Authority has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414.

Finding Details

Finding 2025-001
Program Name Housing Choice Vouchers "Internal Control" Significant Deficiency N Special Tests ALN(s) 14.871 2025-001 HQS Enforcement Criteria HUD requires that all units under the Housing Choice Vouchers Program meet specific Housing Quality Standards (HQS). In cases of failed inspections, timely re-inspections are mandatory, and if compliance is not achieved, abatement of Housing Assistance Payments (HAP) or voucher cancellation is required. Condition We selected 25 failed HQS inspections from the Authority's database. During testing management was unable to provide the initial failed inspection forms with deficiencies notate. During discussion with Sec 8 director, we determined that the inspection forms are not printed and maintained. On the form, there is not sufficient documentation of failed items and the passing inspection forms have the date of the initial failed inspection but not the actual passing date. Other control issues include lack of follow-up on failed units and abatement of HAP after allowable period. Context This finding represents a potentially systemic issue within the Housing Voucher Cluster program, as it was identified in all 25 files tested out of a sample of 25 cases. It highlights a need for more rigorous enforcement and monitoring of HQS compliance. Cause The non-compliance appears to stem from oversight or procedural lapses in the enforcement of HQS within the Housing Voucher Cluster program. This may be due to inadequate training, monitoring, or failure to adhere to established protocols. Effect This non-compliance undermines the integrity of the Housing Choice Vouchers Program and may lead to tenants living in substandard conditions. It also represents a risk of improper use of federal funds and can impact the credibility and effectiveness of the program. Recommendations Implement more stringent procedures for monitoring HQS compliance, including timely reinspection and enforcement of HAP abatement or voucher cancellation. Enhance training for staff involved in the HQS process to ensure a thorough understanding of compliance requirements. Establish a system of regular audits to identify and rectify lapses in HQS enforcement promptly. Questioned Costs The exact monetary impact needs further investigation to determine the amount of HAP that should have been abated for the period of non-compliance. Management Views The auditee acknowledges the deficiency in enforcing Housing Quality Standards (HQS) as highlighted in the finding. In response to this issue, the management commits to implementing a comprehensive Corrective Action Plan.