Finding 1113971 (2024-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-03-26

AI Summary

  • Core Issue: The Authority failed to enforce timely corrections of Housing Quality Standards (HQS) deficiencies, leading to a material weakness in internal controls.
  • Impacted Requirements: Noncompliance with HQS enforcement requirements, including failure to abate Housing Assistance Payments (HAP) and enforce family obligations.
  • Recommended Follow-up: Implement controls to ensure timely correction of HQS deficiencies and proper abatement of HAP for non-compliant units.

Finding Text

2024 – 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: MD015VO – 2024 Award Period: July 1, 2023 – June 30, 2024 Compliance Requirement: Special Tests and Provisions – HQS Enforcement Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Criteria or Specific Requirement: For units under HAP contract that fail to meet HQS, the Authority must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned Costs: $7,411 Context: Exceptions were noted in 15 out of 60 failed inspections: The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 4 out of 60 failed inspections. The Authority did not properly abate HAP for 14 out of 60 failed inspections. The Authority failed to enforce family obligations for 1 out of 60 failed inspections. The Authority failed to provide notice of failed inspection to landlord and tenant for 1 out of 60 failed inspections. The Authority failed to provide copy of the passed inspection for 1 out of 60 failed inspections. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements Repeat Finding: Yes, see prior year finding 2023-005. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Questioned Costs Special Tests & Provisions Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 537526 2024-001
    Significant Deficiency Repeat
  • 537527 2024-002
    Significant Deficiency Repeat
  • 537528 2024-003
    Significant Deficiency Repeat
  • 537529 2024-004
    Material Weakness Repeat
  • 537530 2024-005
    Material Weakness
  • 537531 2024-001
    Significant Deficiency Repeat
  • 537532 2024-002
    Significant Deficiency Repeat
  • 537533 2024-003
    Significant Deficiency Repeat
  • 537534 2024-004
    Material Weakness Repeat
  • 537535 2024-005
    Material Weakness
  • 1113968 2024-001
    Significant Deficiency Repeat
  • 1113969 2024-002
    Significant Deficiency Repeat
  • 1113970 2024-003
    Significant Deficiency Repeat
  • 1113972 2024-005
    Material Weakness
  • 1113973 2024-001
    Significant Deficiency Repeat
  • 1113974 2024-002
    Significant Deficiency Repeat
  • 1113975 2024-003
    Significant Deficiency Repeat
  • 1113976 2024-004
    Material Weakness Repeat
  • 1113977 2024-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $2.39M
14.871 Section 8 Housing Choice Vouchers $2.24M
14.872 Public Housing Capital Fund $381,200
14.896 Family Self-Sufficiency Program $191,687
14.218 Community Development Block Grants/entitlement Grants $91,815