Finding 1157588 (2024-001)

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

AI Summary

  • Core Issue: The Authority failed to conduct timely quality control re-inspections, violating HUD regulations.
  • Impacted Requirements: Biennial inspections and re-inspections must occur within 3 months, as per 24 CFR sections 982.158(d) and 982.405(b).
  • Recommended Follow-Up: Review and improve the quality control re-inspection process and ensure proper use of Yardi software for documentation.

Finding Text

Housing Voucher Cluster – HQS QC Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Federal Award Identification Number and Year: VA003, 2023-2024 Assistance Listing Number: 14.871/14.879/14.EHV Award Period: July 1, 2023 – December 31, 2024 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Criteria or specific requirement: 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)). Per the Authority's administrative plan, the re-inspection must be performed within 3 months (90 days) of the original inspection. Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure compliance over HQS quality control re-inspection requirements was met. Context: During our testing of 6 files for quality control re-inspections, we noted that 6 of the files contained re-inspections that were not performed within 3 months of the original inspection. 1 file did not list the QC inspector's name. 1 file had the same inspector for both the original and quality control reinspection. Additionally, we noted only 19 quality control re-inspections were performed for the 18 month period. Questioned costs: Unable to determine Cause: The staff performing the inspections did not properly use the Yardi software program available to conduct and document the inspection process. Additional training will be provided to staff. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes, 2023-004. Recommendation: We recommend the Authority review their quality control re-inspection process to ensure the inspections are performed timely and in accordance with the SEMAP requirements. We recommend that the Authority utilize Yardi software to its full potential in terms of inspection documentation. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Housing Voucher Cluster-Assistance Listing No. 14.871/14.879/14.EHV Recommendation: We recommend the Authority review their quality control re-inspection process to ensure the inspections are performed timely and in accordance with the SEMAP requirements. We recommend that the Authority utilize Yardi software to its full potential in terms of inspection documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Director of Housing will ensure the re-inspection process in performed timely and the documentation is maintained within the Yardi software program. Processes will be reviewed and updated to ensure timely correction and enforcement. Name(s) of the contact person(s) responsible for corrective action: Director of Housing Planned completion date for corrective action plan: December 31 , 2025

Categories

HUD Housing Programs Material Weakness

Other Findings in this Audit

  • 1157586 2024-001
    Material Weakness Repeat
  • 1157587 2024-001
    Material Weakness Repeat
  • 1157589 2024-002
    Material Weakness Repeat
  • 1157590 2024-002
    Material Weakness Repeat
  • 1157591 2024-002
    Material Weakness Repeat
  • 1157592 2024-003
    Material Weakness Repeat
  • 1157593 2024-003
    Material Weakness Repeat
  • 1157594 2024-003
    Material Weakness Repeat
  • 1157595 2024-004
    Material Weakness Repeat
  • 1157596 2024-004
    Material Weakness Repeat
  • 1157597 2024-004
    Material Weakness Repeat
  • 1157598 2024-005
    Material Weakness Repeat
  • 1157599 2024-005
    Material Weakness Repeat
  • 1157600 2024-005
    Material Weakness Repeat
  • 1157601 2024-006
    Material Weakness Repeat
  • 1157602 2024-006
    Material Weakness Repeat
  • 1157603 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.889 Choice Neighborhoods Implementation Grants $11.05M
14.850 Public Housing Operating Fund $7.35M
14.872 Public Housing Capital Fund $6.19M
14.218 Community Development Block Grants/entitlement Grants $2.69M
14.879 Mainstream Vouchers $2.04M
14.239 Home Investment Partnerships Program $1.36M
14.195 Project-Based Rental Assistance (pbra) $1.24M
14.871 Section 8 Housing Choice Vouchers $650,204
14.896 Family Self-Sufficiency Program $236,979
14.870 Resident Opportunity and Supportive Services - Service Coordinators $156,389
14.267 Continuum of Care Program $109,770