Audit 408753

Information on the Federal Program: Assistance Listing No. 14.195 Project-Based Rental Assistance United States Department of Housing and Urban Development (HUD) (PBRA), 061-EH025 - 2025 Criteria: Special Tests and Provisions – Housing Quality Standards (24 CFR sections 574.310(b)(1)-(2)) Condition: The Department of Housing and Urban Development provided requirements associated with the Housing Assistance Payments. Those requirements outlined that the PHA or owner must provide housing that is decent, safe, and sanitary. To achieve this end, the PHA or owner must perform housing quality inspections at the time of initial occupancy and at least annually thereafter to ensure that the units are decent, safe, and sanitary. Management should have effectively designed controls in place to prevent, or detect and correct, material noncompliance with federal programs. Cause: A control was not in place to prevent, or detect and correct, missing housing quality inspections from being identified and reported for one to be performed. Effect: MM of M did not ensure that the units are decent, safe, and sanitary. Questioned costs: None Context: MM of M could not provide documentation of housing quality inspections being performed during the year under audit. Forvis Mazars sampled 16 of the 102 units at MM of M and received documentation showing that a housing quality inspection was performed for only 2 out of the 16 units. The sample was not intended to be and was not a statistically valid sample. Identification of a Repeat Finding: Not a repeat finding. Recommendation: Effective controls over compliance should be implemented to ensure housing quality inspections are performed yearly in accordance with the HUD requirements. Views of responsible officials and planned corrective actions: Management agrees with the findings and has put in place a process to detect missing housing quality inspections on a yearly basis going forward. See Management’s Corrective Action Plan attached.

Information on the Federal Program: Assistance Listing No. 14.195 Project-Based Rental Assistance United States Department of Housing and Urban Development (HUD) (PBRA), 061-EH025 - 2025 Criteria: Special Tests and Provisions – Vacant Units (24 CFR sections 880.611, 881.601, 882.411, 882.808(f), 883.701, 884.106, 886.109, and 886.309) Condition: The Department of Housing and Urban Development provided requirements associated with the Housing Assistance Payments. Those requirements outlined that the PHA or owner must reduce claims for assistance on vacant units under certain circumstances. However, there are instances where special claims are allowed for vacancy losses, unpaid rent, and tenant damages on eligible units. Management should have effectively designed controls in place to prevent, or detect and correct, material noncompliance with federal programs. Cause: A control was not in place to prevent, or detect and correct, missing reduced claims for assistance on vacant units from being identified. Effect: MM of M did not ensure that the vacant units claims for assistance were reduced. Questioned costs: $533 Context: MM of M did not properly recoup the housing assistance payment of their vacant units. Forvis Mazars sampled 4 of the 24 units that were vacant at MM of M and received documentation showing that the housing assistance payment was not properly recouped for 1 of the 4 units. The sample was not intended to be and was not a statistically valid sample. Identification of a Repeat Finding: Not a repeat finding. Recommendation: Effective controls over compliance should be implemented to ensure claims for assistance are reduced upon a unit becoming vacant in accordance with the HUD requirements. Views of responsible officials and planned corrective actions: Management agrees with the findings and has put in place a process to reduce requests for vacancies. See Management’s Corrective Action Plan attached.