Finding 1157287 (2024-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369582
Organization: Fort Worth Housing Solutions (TX)

AI Summary

  • Core Issue: The Authority failed to complete biennial inspections on time, violating HUD's inspection standards.
  • Impacted Requirements: Compliance with the new NSPIRE inspection standards, effective October 1, 2023, was not met.
  • Recommended Follow-Up: Implement processes to ensure timely completion of all required inspections.

Finding Text

Federal Agency: US Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 Award Period: January 1, 2024, through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: According to the HUD Compliance Supplement, "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)). However, NSPIRE for HCV and PBV programs, referred to as NSPIRE-V during HUD’s demonstration, was effective October 1, 2023, and replaced Housing Quality Standards (HQS), as previously defined in 24 CFR 982.401, as the inspection standards for these programs." Condition: The Authority did not have adequate internal controls designed to ensure that the biennial inspection was completed in a timely manner. Questioned costs: None Context: During our testing, 1 of 29 sampled tenant files did not have their inspection completed within the required biennial timeframe. Cause: The Authority did not have adequate internal controls to ensure all inspections were completed within the correct timeframe. Effect: The Authority is not in compliance with the program requirements of the housing quality inspections standards. Repeat Finding: No Recommendation: We recommend that the Authority implement processes to ensure that inspections are completed on time. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Significant Deficiency in Internal Control over Compliance, Other Matters – Annual HQS Inspection Housing Choice Voucher Program – Assistance Listing No. 14.871 – HQS Enforcement Recommendation: We recommend that the Authority implement processes to ensure that inspections are completed on time. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority has implemented enhanced procedures to ensure timely completion of Housing Quality Standards (HQS) inspections. A scheduling and tracking system has been established to monitor upcoming inspections, and staff have been trained on these updated procedures. Additionally, the HCV supervisor conducts weekly reviews to ensure inspections are completed on schedule and any delays are addressed promptly. Name(s) of the contact person(s) responsible for corrective action: Lanesha Combs, Vice President of Housing Choice Voucher Program Planned completion date for corrective action plan: December 31, 2025 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please contact Hector Ordonez, Vice President of Finance and Administration at (817) 333-3421 or hordonez@fwhs.org.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1157285 2024-001
    Material Weakness Repeat
  • 1157286 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $70.27M
14.889 Choice Neighborhoods Implementation Grants $7.89M
14.879 Mainstream Vouchers $5.30M
14.267 Continuum of Care Program $3.77M
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.46M
14.872 Public Housing Capital Fund $2.34M
14.850 Public Housing Operating Fund $1.58M
14.218 Community Development Block Grants/entitlement Grants $802,118
14.870 Resident Opportunity and Supportive Services - Service Coordinators $460,650
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $411,732