FAC Explorer

Finding 1153835 (2024-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-09-22
Audit: 366922
Organization: Chattanooga Housing Authority (TN)
Auditor: Cherry Bekaert LLP

AI Summary

  • Core Issue: Two out of forty housing quality inspections were not completed on time, indicating a significant deficiency in compliance.
  • Impacted Requirements: The Authority must conduct inspections at least every two years to meet Housing Quality Standards.
  • Recommended Follow-Up: Review and improve the inspection process to ensure timely completion of all required inspections.

Finding Text

Finding: 2024-002 Program Name: Housing Voucher Cluster (14.871-CL) Federal Awarding Authority: Department of Housing and Urban Development Compliance Requirement: Housing Quality Standards Inspections Type of Finding: Significant Deficiency; Nonmaterial Noncompliance Criteria: The Authority must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards. Condition: The required inspections for two (2) tenants out of a sample of forty (40) were not completed timely. Cause: The Authority did not have appropriate controls in place over housing quality inspections to ensure they were completed at least biennially. Effect: The Authority was not in compliance with the housing quality inspection compliance requirements for the year ended December 31, 2024. Auditor Recommendation: We recommend the Authority review its process for completing housing quality inspections and verify that all required inspections have been completed timely. Questioned Costs: None. Management’s Response: The Authority’s Inspections Field Services Manager will meet with the Program Director on a monthly basis to review for any upcoming delinquent inspections to devise a plan to expedite any that are identified.

Corrective Action Plan

Finding reference: 2024-002 Description of Finding: The required inspections for two (2) tenants out of a sample of forty (40) were not completed timely. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Action: The Authority’s Field Services Manager is now printing system generated reports to distribute to inspectors for review. Inspectors are required to review to identify any units that are in need of inspections outside of those that have already been scheduled. Those reports are downloaded and saved to monthly file folders for oversight of that process. Name of Contact Person: Curtis Lokey, Director of Finance, 432-752-4893, clokey@chahousing.org

Categories

Significant Deficiency

Other Findings in this Audit

  • 1153830 2024-001
    Material Weakness Repeat
  • 1153831 2024-002
    Material Weakness Repeat
  • 1153832 2024-001
    Material Weakness Repeat
  • 1153833 2024-002
    Material Weakness Repeat
  • 1153834 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $8.94M
14.195 Project-Based Rental Assistance (pbra) $3.07M
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.20M
14.872 Public Housing Capital Fund $2.10M
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $1.44M
14.871 Section 8 Housing Choice Vouchers $526,183
14.218 Community Development Block Grants/entitlement Grants $184,535
14.879 Mainstream Vouchers $180,887
14.889 Choice Neighborhoods Implementation Grants $168,376
14.870 Resident Opportunity and Supportive Services - Service Coordinators $138,606
14.896 Family Self-Sufficiency Program $81,907