Corrective Action Plan For the year ended December 31, 2023 U.S. Department of Housing and Urban Development: Housing Authority of the County of Santa Barbara respectfully submits the following corrective action plan for the year ended December 31, 2023. Auditor: Novogradac and Company, LLP Certifie...
Corrective Action Plan For the year ended December 31, 2023 U.S. Department of Housing and Urban Development: Housing Authority of the County of Santa Barbara respectfully submits the following corrective action plan for the year ended December 31, 2023. Auditor: Novogradac and Company, LLP Certified Public Accountants 1144 Hooper Avenue Suite 203 Toms River, New Jersey 08753 The findings from the December 31, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Financial Statement Findings There were no findings relating to the financial statements which are required to be reported in accordance with Government Auditing Standards. Federal Award Findings and Questioned Costs Finding 2023-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Assistance Listing Number: 14.871 Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the 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)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussion with management, there was a failed inspection that did not pass reinspection within 30 days without penalty. Context: There were approximately six hundred ninety four (694) failed inspections during the audit period. Of a sample size of twenty-five (25) failed inspections, one (1) unit did not pass reinspection within 30 days. HAP was not abated nor was the tenant transferred. Known Questioned Costs: $4,107 Our sample size is statistically valid. Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement a corrective action plan that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority accepts the recommendation of the auditor and will make the necessary changes to its inspection process to ensure enforcement of Housing Quality Standards (or any subsequent replacement). Sanford Riggs, Director of Operations, is responsible for implementing this corrective action by December 31, 2024 Schedule of Prior Year Audit Findings Context: Based upon inspection of the Authority’s procurement files, there was one vendor who was contracted utilizing non competitive (sole source) proposals in violation of the Authority's approved Statement of Fiscal Policies, dated August 16, 2018. Status: The finding has been cleared. Sincerely yours, Irene Melton, Director of Finance Housing Authority of the County of Santa Barbara