Finding 1155413 (2024-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-09-25

AI Summary

  • Core Issue: The Authority failed to conduct required biennial inspections of housing units, violating HUD standards.
  • Impacted Requirements: Compliance with Housing Quality Standards (HQS) as outlined in 24 CFR 982.405(b).
  • Recommended Follow-Up: Review and update HQS inspection policies and ensure inspectors are trained to perform timely inspections.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Section 8 Housing Choice Vouchers FALN: 14.871 Federal Award Identification Number and Year: IN010, 2024 Award Period: 1/1/2024-12/31/2024 Type of Finding: Material Weakness in Internal Control over Compliance and Noncompliance Criteria or specific requirement: The Authority must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS) (24 CFR 982.405(b)). Condition: The Authority did not follow its policies and procedures designed to ensure HQS inspections were performed timely. Questioned costs: None. Context: During our testing of 40 files over HQS inspections, we noted the 12 of 40 units tested had an inspection that was not performed on a biennial basis as required per the Authority’s Administrative Plan. Cause: The Authority did not complete timely inspections due to incorrect settings in the software system. Effect: The Authority is not in compliance with HUD requirements. Repeat finding: No. Recommendation: We recommend the Authority review its HQS inspection policies and procedures and discuss these standards with the responsible inspectors to ensure all inspections are performed timely. Views of responsible officials: The Authority agrees with the finding and will take corrective action.

Corrective Action Plan

Housing Voucher Cluster – ALN No. 14.871– Annual HQS Inspections Recommendation: We recommend the Authority review its HQS inspection policies and procedures and discuss these standards with the responsible inspectors to ensure all inspections are performed timely. Explanation of disagreement with audit finding: The HHA agrees. Action taken in response to finding: The HHA will review its Policies to ensure HQS inspections are in compliance with HHA policies and HUD regulations. Names of the contact persons responsible for corrective action: Maria Carmen Paniagua, Executive Director and Barbara Stanley, HCV Director. Planned completion date for corrective action plan: 30-days.

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $7.47M
14.850 Public Housing Operating Fund $1.18M
14.872 Public Housing Capital Fund $380,454
14.896 Family Self-Sufficiency Program $63,005