Finding 1081564 (2023-007)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-11-08
Audit: 327788
Organization: City of Long Beach (CA)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: The City failed to conduct the required number of quality control inspections for Housing Choice Vouchers, completing only 20 out of the expected 284.
  • Impacted Requirements: This shortfall violates HUD regulations, which mandate that a supervisory person conduct quality control inspections to ensure accuracy and consistency in initial inspections.
  • Recommended Follow-Up: The City should develop a plan to ensure that quality control inspections meet the 5% requirement, including providing additional training and resources for the responsible staff.

Finding Text

Finding Number: 2023-007 Program: COVID-19 Section 8 Housing Choice Vouchers ALN #: 14.871 Pass-through Entity: N/A – Direct Award Federal Agency: Department of Housing and Urban Development (HUD) Federal Award Numbers: Multiple – City receives incremental funding throughout the year. Federal Award Year: 2023 Compliance Requirement: Special Tests- Quality Control Inspections Criteria Per 24 CFR 982.405(c), HUD required a PHA supervisory or other qualified person to conduct quality control inspections of a sample of units to ensure that each inspector is conducting accurate and complete inspections and that there is consistency in the application of Housing Quality Standards. The unit sample must include only units that have been inspected within the preceding three months. The selected sample should be drawn to represent a cross section of neighborhoods and the work of a cross section of inspectors. Per the City’s policies and procedures, 5% of the initial inspections will have a quality control inspection completed. Conditions Found Upon reviewing the population of completed quality control inspections, we noted that only 20 quality control inspections occurred in the fiscal year ended September 30, 2023. However, there was a total of 5,671 initial inspections completed during this time period and as such, there should have been approximately 284 quality control inspections completed as the City’s policy is to verify 5%. This is a difference of 264 quality control inspections that should have been completed. Cause Due to the required number of quality control inspections to be completed and limited resources to complete those quality control inspections, the City was not able to meet the requirement in during the fiscal year ended September 30, 2023. Effect Not completing the required number of quality control inspections could indicate that initial inspections are not being conducted accurately, completely, or consistently at the City. This has caused the City to not be in compliance with HUD regulations. Questioned Costs Not applicable Repeat finding A similar finding was not reported in the prior year. Statistical sample The sample was not intended to be, and was not, a statistically valid sample. Recommendation We recommend the City implement a process in which the City is able to complete quality control inspections over 5% of the initial inspections completed throughout the year. View of Responsible Officials The gap in completing the required number of quality control inspections was primarily due to lack of resources and training. In addressing the requirement for 5% of initial inspections having a quality control inspection completed, HACLB will establish clear criteria and standards for the Inspections Housing Assistance Coordinator, who is responsible for quality control inspections to ensure compliance with operational and regulatory requirements. Furthermore, the Inspections Housing Assistance Coordinator will receive additional training on quality control procedures to enhance their skills and understanding of the review process.

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 505102 2023-002
    Material Weakness Repeat
  • 505103 2023-002
    Material Weakness Repeat
  • 505104 2023-002
    Material Weakness Repeat
  • 505105 2023-002
    Material Weakness Repeat
  • 505106 2023-002
    Material Weakness Repeat
  • 505107 2023-003
    Material Weakness
  • 505108 2023-003
    Material Weakness
  • 505109 2023-003
    Material Weakness
  • 505110 2023-003
    Material Weakness
  • 505111 2023-003
    Material Weakness
  • 505112 2023-004
    Material Weakness
  • 505113 2023-004
    Material Weakness
  • 505114 2023-004
    Material Weakness
  • 505115 2023-004
    Material Weakness
  • 505116 2023-004
    Material Weakness
  • 505117 2023-005
    Material Weakness
  • 505118 2023-005
    Material Weakness
  • 505119 2023-006
    Material Weakness
  • 505120 2023-006
    Material Weakness
  • 505121 2023-007
    -
  • 505122 2023-007
    -
  • 505123 2023-008
    Material Weakness
  • 505124 2023-008
    Material Weakness
  • 505125 2023-009
    Material Weakness
  • 505126 2023-009
    Material Weakness
  • 505127 2023-010
    Material Weakness
  • 505128 2023-011
    Material Weakness
  • 1081544 2023-002
    Material Weakness Repeat
  • 1081545 2023-002
    Material Weakness Repeat
  • 1081546 2023-002
    Material Weakness Repeat
  • 1081547 2023-002
    Material Weakness Repeat
  • 1081548 2023-002
    Material Weakness Repeat
  • 1081549 2023-003
    Material Weakness
  • 1081550 2023-003
    Material Weakness
  • 1081551 2023-003
    Material Weakness
  • 1081552 2023-003
    Material Weakness
  • 1081553 2023-003
    Material Weakness
  • 1081554 2023-004
    Material Weakness
  • 1081555 2023-004
    Material Weakness
  • 1081556 2023-004
    Material Weakness
  • 1081557 2023-004
    Material Weakness
  • 1081558 2023-004
    Material Weakness
  • 1081559 2023-005
    Material Weakness
  • 1081560 2023-005
    Material Weakness
  • 1081561 2023-006
    Material Weakness
  • 1081562 2023-006
    Material Weakness
  • 1081563 2023-007
    -
  • 1081565 2023-008
    Material Weakness
  • 1081566 2023-008
    Material Weakness
  • 1081567 2023-009
    Material Weakness
  • 1081568 2023-009
    Material Weakness
  • 1081569 2023-010
    Material Weakness
  • 1081570 2023-011
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $109.58M
14.871 Covid-19 Section 8 Housing Choice Vouchers $9.90M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $8.84M
21.023 Covid-19 Emergency Rental Assistance Program $6.76M
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $4.81M
14.218 Community Development Block Grants/entitlement Grants $3.83M
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $2.97M
14.231 Covid-19 Emergency Solutions Grant Program $2.63M
14.267 Continuum of Care Program $2.49M
17.259 Wioa Youth Activities $1.82M
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $1.50M
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $1.38M
20.106 Covid-19 Airport Improvement Program $1.34M
93.498 Covid-19 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $1.17M
93.917 Hiv Care Formula Grants $1.11M
93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants $1.10M
15.514 Reclamation States Emergency Drought Relief $1.08M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $1.03M
97.056 Port Security Grant Program $931,745
93.069 Public Health Emergency Preparedness $917,989
15.504 Title Xvi Water Reclamation and Reuse Program $850,412
14.900 Lead Hazard Reduction Grant Program $795,149
14.905 Lead Hazard Reduction Demonstration Grant Program $790,056
93.268 Immunization Cooperative Agreements $765,063
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $686,801
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $645,239
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $424,261
97.067 Homeland Security Grant Program $369,977
16.825 Smart Prosecution Initiative $353,473
14.896 Family Self-Sufficiency Program $344,211
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $321,057
15.916 Outdoor Recreation Acquisition, Development and Planning $310,615
20.205 Highway Planning and Construction $296,991
14.231 Emergency Solutions Grant Program $270,907
16.835 Body Worn Camera Policy and Implementation $252,470
14.239 Home Investment Partnerships Program $239,741
17.277 Wioa National Dislocated Worker Grants / Wia National Emergency Grants $236,914
20.106 Airport Improvement Program $227,664
16.738 Edward Byrne Memorial Justice Assistance Grant Program $212,696
10.559 Summer Food Service Program for Children $207,866
16.838 Comprehensive Opioid, Stimulant, and Other Substances Use Program $197,989
20.616 National Priority Safety Programs $179,047
16.560 National Institute of Justice Research, Evaluation, and Development Project Grants $151,117
93.994 Maternal and Child Health Services Block Grant to the States $150,165
20.600 State and Community Highway Safety $144,593
93.778 Medical Assistance Program $140,991
21.016 Equitable Sharing $133,000
15.557 Applied Science Grants $112,593
66.472 Beach Monitoring and Notification Program Implementation Grants $102,678
93.070 Environmental Public Health and Emergency Response $93,711
93.197 Childhood Lead Poisoning Prevention Projects, State and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $91,128
14.895 Jobs-Plus Pilot Initiative $87,063
97.042 Emergency Management Performance Grants $82,000
93.914 Hiv Emergency Relief Project Grants $69,207
93.558 Temporary Assistance for Needy Families $68,144
14.241 Housing Opportunities for Persons with Aids $57,714
93.940 Hiv Prevention Activities Health Department Based $51,943
97.106 Securing the Cities Program $37,947
93.354 Covid-19 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $36,190
17.278 Wioa Dislocated Worker Formula Grants $34,027
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation�s Health $25,000
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $16,009
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $14,250
15.530 Water Conservation Field Services (wcfs) $14,069
93.008 Medical Reserve Corps Small Grant Program $10,000
14.256 Neighborhood Stabilization Program (recovery Act Funded) $6,429
97.042 Covid-19 Emergency Management Performance Grants $4,880
16.710 Public Safety Partnership and Community Policing Grants $3,968
17.258 Wioa Adult Program $3,890
97.024 Emergency Food and Shelter National Board Program $2,646
14.218 Covid-19 Community Development Block Grants/entitlement Grants $172