Finding 1148673 (2024-003)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-07-30

AI Summary

  • Core Issue: The Agency failed to conduct and document unit inspections as required by Housing Quality Standards, leading to non-compliance with Uniform Guidance.
  • Impacted Requirements: The lack of proper reporting and tracking resulted in $333,467 in questioned costs due to disallowed or overpaid expenses.
  • Recommended Follow-Up: Management has acquired new software for tracking inspections, trained staff, and implemented it in fiscal year 2025 to ensure compliance and avoid future costs.

Finding Text

Criteria: The Agency is required to inspect units to determine if the unit meets Housing Quality Standards. A unit inspection report must be completed and filed. Questioned Costs: $333,467 in prior disallowed, questioned, or overpaid costs. Effect: The Agency was not in compliance with the Uniform Guidance due to not filing the required reports or tracking the inspections appropriately. Cause: The Agency had numerous HUD program directors, and the director at the time did not ensure the proper software was installed to track inspections and file the reports. Recommendation: Management should purchase the software product to track and file HQS inspections. Views of Responsible Officials and Planned Corrective Actions: The Agency agrees with the finding and has purchased a software package to track and file inspections. The staff has been trained on the software, and it has been implemented in fiscal year 2025. The Agency also performed inspections on all units in fiscal year 2025. After inspections are complete, Agency will be in compliance with HUD and should not have to pay back the questioned costs.

Categories

Questioned Costs Procurement, Suspension & Debarment HUD Housing Programs

Other Findings in this Audit

  • 572229 2024-001
    Material Weakness
  • 572230 2024-002
    Material Weakness
  • 572231 2024-003
    Material Weakness
  • 1148671 2024-001
    Material Weakness
  • 1148672 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $6.42M
14.871 Section 8 Housing Choice Vouchers $3.08M
10.558 Child and Adult Care Food Program $605,214
93.569 Community Services Block Grant $473,221