FAC Explorer

Finding 1156769 (2024-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369097
Organization: Sacramento Housing and Revelopment Agency (CA)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The Agency lacks adequate internal controls for ensuring timely NSPIRE inspections of housing units.
  • Impacted Requirements: Compliance with Housing Quality Standards (HQS) is not being met, as inspections are not conducted biennially as required.
  • Recommended Follow-up: Review and strengthen inspection controls to ensure timely completion and adherence to internal procedures.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: CA007 2024 Award Period: January 1, 2024 – December 31, 2024 Type of Finding: - Significant Deficiency in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: Special Tests and Provisions-Housing Quality Standards Enforcement The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition: The Agency did not have adequate internal controls designed to ensure that NSPIRE inspections were completed in accordance with compliance requirements. Questioned Costs: None Context: During the testing of 60 inspections, 1 instance was noted where no annual inspection had been completed since November 2022. Cause: The Agency failed to follow their inspection procedures. Effect: The Agency is not in compliance with federal regulations regarding minimum housing quality standards and was paying housing assistance for a unit that did not meet these standards. Repeat Finding: No Recommendation: We recommend that the Agency review the controls in place to ensure that the inspections team can complete the reinspections in a timely manner and are knowledgeable of all internal procedures in place over inspections. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879 Recommendation: We recommend that the Agency review the controls in place to ensure that the inspections team can complete the re-inspections in a timely manner and are knowledgeable of all internal procedures in place over inspections. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Reports have been implemented to track the scheduling and completion of inspections. These reports are reviewed regularly by the Owner Services Supervisor to ensure that all required inspections are completed on schedule. This tracking process strengthens internal controls and provides timely oversight, ensuring compliance with HUD’s inspection requirements. Name(s) of the contact person(s) responsible for corrective action: MaryLiz Paulson, Director, Housing Choice Vouchers Planned completion date for corrective action plan: December 31, 2025

Categories

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Other Findings in this Audit

  • 1156761 2024-002
    Material Weakness Repeat
  • 1156762 2024-002
    Material Weakness Repeat
  • 1156763 2024-002
    Material Weakness Repeat
  • 1156764 2024-003
    Material Weakness Repeat
  • 1156765 2024-003
    Material Weakness Repeat
  • 1156766 2024-003
    Material Weakness Repeat
  • 1156767 2024-004
    Material Weakness Repeat
  • 1156768 2024-004
    Material Weakness Repeat
  • 1156770 2024-005
    Material Weakness Repeat
  • 1156771 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $139.99M
14.850 Public Housing Operating Fund $9.52M
14.871 Section 8 Housing Choice Vouchers $9.01M
21.023 Emergency Rental Assistance Program $8.29M
14.872 Public Housing Capital Fund $8.00M
21.027 Coronavirus State and Local Fiscal Recovery Funds $6.60M
14.267 Continuum of Care Program $6.00M
14.879 Mainstream Vouchers $4.05M
14.241 Housing Opportunities for Persons with Aids $1.83M
14.218 Community Development Block Grants/entitlement Grants $1.59M
14.231 Emergency Solutions Grant Program $939,385
14.896 Family Self-Sufficiency Program $189,089
14.870 Resident Opportunity and Supportive Services - Service Coordinators $180,111
14.900 Lead Hazard Reduction Grant Program $178,109
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $132,083