Finding 1166807 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-29
Audit: 377917
Auditor: RBT CPAS LLP

AI Summary

  • Core Issue: The Authority is not keeping track of failed inspections, leading to potential compliance issues with HUD regulations.
  • Impacted Requirements: Compliance with federal laws and internal controls related to Housing Choice Voucher inspections is not being met.
  • Recommended Follow-Up: Implement a weekly/monthly checklist for tracking failed inspections to ensure timely follow-up and compliance.

Finding Text

2025-003 - HQS Enforcements U.S. Department of Housing And Urban Development 14.871 - Housing Choice Voucher Cluster/Section 8 Housing Choice Vouchers N. Special Tests and Provisions - Significant Deficiency and Compliance Finding Condition: During review of the Housing Choice Voucher tenant files, RBT noted that the Authority was not appropriately maintaining the listing of failed inspections to ensure follow up in accordance with HQS Enforcement. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority did not establish controls over failed HQS inspections to ensure proper HQS enforcement. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Out of twenty-one failed HQS inspections selected for testing, three were not properly followed up on with the landlord and payments to respective landlords were not abated as required under HUD guidelines. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Authority establish a weekly/monthly list for the Housing Coordinators to use during the HQS inspection process to ensure all failed inspections are followed up on and corrected timely. The list should be signed and initialed by the coordinator weekly/monthly to track and maintain the status of all HQS inspections. This checklist will serve as documentation that all HQS requirements have been met. Auditor's Response: See corrective action plan.

Corrective Action Plan

PHA staff will print out any NO shows inspections with the letter sent to the tenant of the rescheduling date in the tenant's file therefore there would be no assumption that there should have been an abatement executed when it no shows.

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 1166806 2025-002
    Material Weakness Repeat
  • 1166808 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $8.78M
14.850 PUBLIC HOUSING OPERATING FUND $1.44M
14.872 PUBLIC HOUSING CAPITAL FUND $786,622