Finding 1166657 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-24
Audit: 377624
Organization: Boston Housing Authority (MA)

AI Summary

  • Core Issue: The Authority lacks adequate internal controls to ensure timely Housing Quality Standards (HQS) inspections.
  • Impacted Requirements: Compliance with HUD's HQS inspection requirements is not being met, leading to deficiencies in both the Housing Choice Voucher and Section 8 Project Based programs.
  • Recommended Follow-Up: Implement processes to ensure timely completion of HQS inspections to achieve compliance.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name(s): Housing Choice Voucher Cluster, Section 8 Project Based Cluster Assistance Listing Number(s): 14.871 / 14.879, 14.249 / 14.856 Federal Award Identification Number and Year: MA002 – 2025 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: PHA leased to a family at least biannually to determine if the unit meets Housing Quality HQS). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that HQS requirements were being met. As a result, inspections were not completed timely. Questioned Costs: None. Context: During the testing of tenant files, certain inspection compliance deficiencies were noted: Housing Choice Voucher Cluster: Testing of 40 files noted 14 instances where the annual inspection was not performed in a timely manner and the Authority failed to enforce the regulations. Section 8 Project Based Cluster: Testing of 40 files noted 16 instances where the annual inspection was not performed in a timely manner and the Authority failed to enforce the regulations. Cause: The Authority does not have controls in place to ensure it is meeting HQS inspection requirements set by HUD. Effect: The Authority is not in compliance with program requirements over HQS inspections. Recommendation: The Authority should implement processes to ensure that inspection requirements are met timely. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

U.S. Department of Housing and Urban Development Housing Voucher Cluster – Assistance Listing No. 14.871 / 14.879, Section 8 Cluster – Assistance Listing No. 14.249 / 14.856 Recommendation: The Authority should implement processes to ensure that inspection requirements are met timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: This finding is an isolated situation which resulted from staff transition and a transition away from annual to biennial inspections. Because of its size, the HCV program is audited every year and this is the first year that scheduling concerns have been raised. Prior to the finding issuance by the Auditors and within the period being audited, the BHA had already taken steps to correct the scheduling issue. During a regular Leased Housing management review in December of 2024, it was determined that the system of record was not populating the appropriate due date after a passed inspection and staff misunderstood the requirement that all inspections must occur in less than 2-years after a passed inspection, regardless of the SEMAP or fiscal year cycles. As a result of this review, the parameters in the Elite system were updated and a retraining of staff occurred. The result was a SEMAP report as of March 31, 2025 where the percentage of units under contract with overdue annual HQS inspections was less than 2%. BHA will continue to match our system of record to PIC to be sure inspection scheduling remains within the two-year period. Name(s) of the contact person(s) responsible for corrective action: Kathlin McGonagle Planned completion date for corrective action plan: Already implemented

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1166653 2025-001
    Material Weakness Repeat
  • 1166654 2025-001
    Material Weakness Repeat
  • 1166655 2025-001
    Material Weakness Repeat
  • 1166656 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $449.30M
14.850 PUBLIC HOUSING OPERATING FUND $77.31M
14.872 PUBLIC HOUSING CAPITAL FUND $34.37M
14.188 HOUSING FINANCE AGENCIES (HFA) RISK SHARING $25.28M
14.871 EMERGENCY HOUSING VOUCHERS $12.71M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $10.12M
14.879 MAINSTREAM VOUCHERS $8.65M
14.249 SECTION 8 MODERATE REHABILITATION SINGLE ROOM OCCUPANCY $3.43M
14.889 CHOICE NEIGHBORHOODS IMPLEMENTATION GRANTS $2.25M
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $1.80M
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $562,253
14.267 CONTINUUM OF CARE PROGRAM $310,422
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $227,830