Finding 1156014 (2024-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-09-29

AI Summary

  • Core Issue: The Organization failed to provide proof of an on-site inspection for one out of three tenant files tested.
  • Impacted Requirements: Inspections must occur every 1-3 years based on unit count to ensure compliance with HUD Quality Standards.
  • Recommended Follow-Up: Management needs to implement procedures to ensure all required inspections are conducted and documented properly.

Finding Text

Criteria: The grant requires the Organization to perform on-site inspections to determine compliance with property standards and verify the information submitted by the owners no less than (a) every three years for projects containing one to four units, (b) every two years for projects containing five to 25 units, and (c) every year for projects containing 26 or more units. The participating entity must perform on-site inspections of rental housing occupied by tenants receiving HOME assisted tenant based rental assistance to determine compliance with housing quality standards (24 CFR sections 92.209(i), 92.251(f), and 92.504(d)). Condition: The Organization could not provide documentation to support an inspection was completed for one of the selections. Context: In connection with the procedures applied to tenant file testing there was 1 instance of the 3 files tested that an inspection could not be found. Effect: Housing unit may be out of compliance with HUD Quality Standards. Questioned Costs: N/A Cause: Management did not have in place proper procedures and controls to ensure inspections were performed and filed during 2024. Recommendation: Management should establish procedures to insure inspections are completed and maintained. Grantee Comment: Refer to Corrective Action Plan

Corrective Action Plan

Management will ensure that it performs on-site inspections to comply with property standards on a timely basis. Specifically, we will perform on-site inspections of rental housing occupied by tenants receiving HOME assisted tenant based rental assistance to determine compliance with housing quality standards (24 CFR sections 92.209(i), 92.251(f), and 92.504(d)).

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $315,000
14.881 Moving to Work Demonstration Program $261,023