Finding 1153460 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-09-19
Audit: 366709
Organization: Cheboygan Housing Commission (MI)

AI Summary

  • Core Issue: Five out of twelve tenant files failed inspections due to Housing Quality Standards deficiencies, with no follow-up documentation.
  • Impacted Requirements: Biennial inspections and quality control re-inspections were not properly conducted or documented.
  • Recommended Follow-Up: Strengthen internal controls and ensure proper staffing to meet HQS inspection and re-inspection requirements.

Finding Text

Tenant Files – Housing Quality Standards Inspections Criteria: Housing Commissions are required to inspect leased properties at least biennially to determine if the unit meets Housing Quality Standards (HQS) and must conduct quality control re-inspections. Condition: Of the 12 tenant files that were examined, 5 of the tenant files contained unit inspection reports that resulted in a “fail” conclusion because the inspection identified Housing Quality Standards deficiencies. None of the files that contained the failed inspection reports contained any documentation of re-inspection or notifications to the property owners. Cause: The Housing Commission experienced turnover in key positions responsible for performing essential duties, including HQS inspections near the beginning of the fiscal year. This turnover resulted in the Housing Commission not having adequate controls in place to ensure that HQS inspection requirements were complied with. Effect: As a result of this condition, the Housing Commission lacks internal controls over the process for ensuring that HQS inspections, re-inspections and enforcement criteria are being performed in accordance with applicable requirements.

Corrective Action Plan

The current Occupancy Specialist is developing a training and implementation plan to ensure that HQS inspections are performed in a timely manner and in accordance will all applicable HUD requirements. The Executive Director is developing controls and procedures to ensure that HQS inspections are performed in a timely manner and in accordance will all applicable HUD requirements.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1153458 2025-001
    Material Weakness Repeat
  • 1153459 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $476,925
14.872 Public Housing Capital Fund $198,294
14.850 Public Housing Operating Fund $116,921