Finding Text
Assistance Listing Number, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, CDBG Entitlement Grants Cluster - Community Development Block Grant
Federal Award Identification Number and Year - B-18-MC-26-0033, B-19-MC-26-0033, B-20-MC-26-0033, B-21-MC-26-0033, B-22-MC-26-0033, B-23-MC-26-0033
Pass-through Entity - N/A
Finding Type - Material weakness
Repeat Finding - No
Criteria - 24 CFR 570.506(b)(9)(ii) requires the Township to prepare and maintain a prerehabilitation inspection report describing the deficiencies to be rehabilitated for residential properties. The Township is also required to inspect the rehabilitation work upon completion to assure that it is carried out in accordance with rehabilitation standards.
Condition - We noted no formal evidence that required inspections were performed prior to contract approval in one instance. We also noted no formal evidenced that inspections were performed upon project completion to ensure that work was carried out in accordance with contract specifications in one instance.
Questioned Costs - N/A
Identification of How Questioned Costs Were Computed - N/A
Context - No formal evidence existed where deficiencies were identified after the prerehabilitation and postrehabilitation inspection processes had been completed.
Cause and Effect - The lack of documentation of an inspection performed that identified work to be performed prior to contract approval could result in questioned costs if the need for the rehabilitation work could not be substantiated.
Recommendation - We recommend the Township implement controls to ensure a formal inspection report is prepared prior to approval of all rehabilitation contracts, including contracts for deficiencies identified after the initial prerehabilitation inspection process is complete. We also recomment implementing controls to ensure a formal inspection report is prepared upon completion of rehabilitation work to ensure that work was carried out in accordance with contract specifications. Additionally, we recomment implementing controls to ensure a review of ongoing rehabilitation projects occurs at a minimum on a monthly basis to ensure that prerehabilitation and postrehabilitation inspections are being performed.
Views of Responsible Officials and Corrective Action Plan - After the inspector has done the initial walk through to identify required repairs, a full comprehensive write-up and cost is established for all rehabilitation projects that document additional repairs to be completed that are more preventive in nature. Any additional items discovered during the project or requested by the homeowner will be added to the write-up. For any emergency repairs, a memorandum will be added to the file. To ensure that prerehabilitation and postrehabilitation inspections are taking place, the assistant planning director will review a list of ongoing rehabilitation projects at a minimum on a monthly basis.