Finding 1156785 (2024-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-09-30

AI Summary

  • Core Issue: The Authority failed to conduct timely biennial inspections for some housing units, violating Housing Quality Standards.
  • Impacted Requirements: Inspections must occur every two years, with life-threatening issues addressed within 24 hours and other deficiencies within 30 days.
  • Recommended Follow-Up: Implement stronger internal controls to ensure compliance with inspection requirements and the Uniform Guidance.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the 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)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were units that were not inspected within the biennial inspection period of two (2) years. Context: There are approximately four thousand four hundred seventy one (4,471) units. Of a sample size of forty five (45) files, two (2) biennial inspections were not completed in a timely manner. Our sample size is statistically valid. Known Questioned Costs: Amount is below threshold of $25,000. Cause: There is a significant deficiency for the Section 8 Housing Choice Vouchers Program in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has established an inspection unit tasked with reviewing and implementing new procedures to ensure compliance with the program. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Action: The Authority agrees with the auditors' recommendation. To address this issue, the Authority has established an inspection unit that will review and implement new procedures to ensure compliance with the program. Christian Poma-Vasquez, Director of the Inspection Unit, is responsible for implementing this corrective action by December 31, 2025.

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 1156784 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $71.26M
14.872 Public Housing Capital Fund $2.04M
14.267 Continuum of Care Program $1.30M
14.850 Public and Indian Housing $801,692
14.870 Resident Opportunity and Supportive Services - Service Coordinators $13,564