Finding 1076174 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-09-30
Audit: 322548
Auditor: Rubinbrown LLP

AI Summary

  • Core Issue: The Authority failed to review and submit Housing Quality Inspections (HQS) reports to HUD from January to July 2023.
  • Impacted Requirements: This lack of review and submission risks noncompliance with federal regulations, potentially affecting the Authority's SEMAP score.
  • Recommended Follow-Up: Management should improve controls over HQS inspections, implement a new documentation protocol, and conduct regular training and reviews to ensure timely submissions.

Finding Text

Finding 2023-002 Significant Deficiency: Special Reporting - Control Finding ALN 14.871 - Housing Voucher Cluster: Section 8 Housing Choice Vouchers Federal Agency: U.S. Department of Housing and Urban Development (HUD) Pass-Through Entity: N/A - Direct Award Criteria Or Specific Requirement: HUD requires Public Housing Authorities (PHA) to have designed and implemented internal controls over compliance to ensure that the PHA remains in compliance. Condition: The Authority did not review Housing Quality Inspections (HQS) reports prior to submission to the PIH Information Center, nor did the submissions take place from January through July of 2023. Cause: The control in place did not ensure submission of accurate HQS information to HUD, resulting in a low score on the SEMAP submission. Effect: The possibility exists that noncompliance with federal requirements could go undetected regarding compliance relating to direct and material compliance requirements. Questioned Costs: None. Context: The Authority could not provide proof of review or proof of submission of HQS reports to the PIH Information Center for the period of January to July 2023.Identification As A Repeat Finding: Not applicable. Recommendation: We recommend that management evaluate their existing control over HQS inspections and ensure that timely submissions to HUD are performed throughout the year. Views Of Responsible Officials: A new documentation protocol will be established to provide clear proof that this process is occurring regularly. This will include date-stamped review logs and signatures from responsible staff members. We will institute a monthly review of 3 to 5 initial failed inspections. The Authority will conduct refresher training for all relevant staff to ensure they understand the importance of this process and their role in maintaining it. The Authority will implement an automated reminder system to alert staff when reviews and submissions are due and internal quarterly reviews will be conducted to ensure compliance with this process and to identify any potential issues early.

Categories

HUD Housing Programs Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 499731 2023-001
    Significant Deficiency
  • 499732 2023-002
    Significant Deficiency
  • 1076173 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $8.78M
14.872 Public Housing Capital Fund $703,251
14.850 Public Housing Operating Fund $632,164
14.195 Project-Based Rental Assistance (pbra) $210,868
14.896 Family Self-Sufficiency Program $75,600