Finding 1132014 (2024-009)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-04-21
Audit: 354066
Organization: Lincoln Street Housing, Inc. (CA)
Auditor: Snd Partners LLP

AI Summary

  • Core Issue: All tenant lease files reviewed lacked documentation for required annual housing inspections, leading to non-compliance with HUD regulations.
  • Impacted Requirements: The project must ensure housing is decent, safe, and sanitary through regular inspections as mandated by federal guidelines.
  • Recommended Follow-Up: The Owner/Agent should enhance internal controls to ensure compliance with inspection requirements and maintain proper documentation.

Finding Text

Finding # 2024-009 Federal Grantor: U.S. Department of Housing and Urban Development AL # / Program: 14.181 - Supportive Housing for Persons with Disabilities Type of Finding: Federal Award - Eligibility Finding Resolution Status: In Process Information on Universe Population Size: Lincoln Street Housing, Inc. owns a project with a total of 10 units of supportive housing for persons with disabilities in Fremont. Sample size information: Audit procedures were performed on 3 tenant lease files. Criteria: The PHA or owner must provide housing that is decent, safe, and sanitary. To achieve this end, the PHA must perform housing quality inspections at the time of initial occupancy and at least annually thereafter to ensure that the units are decent, safe, and sanitary (24 CFR sections 880.612, 881.601, 882.516, 882.808(n), 883.701, 884.217, 886.123, and 886.323). Statement of Condition / Context: Of the 3 files test, all 3 files were missing documentation that annual unit inspections occurred as required by HUD Handbooks and Regulations. Cause: Internal control over compliance with program compliance requirements are not operating effectively. Effect or Potential Effect: The Project is out of compliance with the Capital Advance Program Regulatory Agreement on form HUD-92466-CA. Auditor Non-Compliance Code: R - Section 8 Program Administration Questioned Costs: No questioned costs associated with this finding. Recommendations: We recommend the Owner/Agent review controls over compliance with unit inspection requirements. Response Indicator: Agree Completion Date: 6/30/2025 Reporting Views of Responsible Officials and Planned Corrective Action: "Annual inspections for FY2024 were not completed. FY2025 inspections were completed in August 2024, and annual inspections were completed annually prior to FY 2024. Inspections will continue to be completed annually going forward. "

Categories

HUD Housing Programs Eligibility Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 555564 2024-001
    Material Weakness
  • 555565 2024-002
    Material Weakness
  • 555566 2024-003
    Material Weakness
  • 555567 2024-004
    Material Weakness
  • 555568 2024-005
    Material Weakness
  • 555569 2024-006
    Material Weakness
  • 555570 2024-007
    Material Weakness
  • 555571 2024-008
    Material Weakness
  • 555572 2024-009
    Material Weakness
  • 555573 2024-010
    Material Weakness
  • 555574 2024-011
    Material Weakness Repeat
  • 1132006 2024-001
    Material Weakness
  • 1132007 2024-002
    Material Weakness
  • 1132008 2024-003
    Material Weakness
  • 1132009 2024-004
    Material Weakness
  • 1132010 2024-005
    Material Weakness
  • 1132011 2024-006
    Material Weakness
  • 1132012 2024-007
    Material Weakness
  • 1132013 2024-008
    Material Weakness
  • 1132015 2024-010
    Material Weakness
  • 1132016 2024-011
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $760,000
14.239 Home Investment Partnerships Program $693,650
14.181 Supportive Housing for Persons with Disabilities $117,960