Finding 1167141 (2024-007)

Material Weakness Repeat Finding
Requirement
EN
Questioned Costs
-
Year
2024
Accepted
2025-12-30
Audit: 378189
Auditor: RBT CPAS LLP

AI Summary

  • Core Issue: Tenant recertification and housing quality inspections were not completed on time for 1 out of 9 files reviewed.
  • Impacted Requirements: Annual recertification of family income and housing quality inspections are mandatory for continued assistance.
  • Recommended Follow-up: Implement controls to ensure timely completion of tenant recertifications and inspections.

Finding Text

14.241 – Housing Opportunities for Persons with AIDs E. Eligibility and N2. Housing Quality Standards – Significant Deficiency and Compliance Finding Condition: During review of the HOPWA tenant files, RBT noted that a tenant’s recertification and housing quality inspection was not performed timely. Criteria: As a condition of continued occupancy, the Organization must reexamine family income and composition at least once every 12 months to verify continued eligibility for assistance. The Organization must perform annual housing quality standard inspections for all housing that involves tenant-based rental assistance. Cause: The Organization did not have controls in place to ensure recertifications and housing quality standard inspections were performed timely. Staff members were not available at the time a recertification and housing quality standard inspection was due. Effect: Potential loss of funding due to noncompliance. Perspective: The tenant recertification and housing quality standard inspection was not completed timely for 1 out of 9 tenant files selected for testing. Recommendation: RBT recommends that the Organization implement controls to ensure that tenant recertifications and housing quality standard inspections are performed timely.

Corrective Action Plan

Unexpected staffing challenges contributed to the late inspections. Action taken to date by the Vice President of Program Services. 1. Staffing Structure Strengthened: o A new Program Director has been hired and is fully trained in all HOPWA program requirements, including inspection procedures. o Additional staff members have now been trained to conduct HOPWA inspections to always ensure operational coverage. 2. Cross-Training of Staff: o Multiple team members, including the Director and program service staff, are cross-trained and able to step in to complete inspections if the assigned case manager is unavailable due to illness, emergency leave, or other unforeseeable circumstances. 3. Backup Coverage Plan Implemented: o A formal backup coverage system is now in place. In the event of staff absence, either the Program Director or another trained staff member will complete the scheduled inspection to avoid any delay. o Coverage responsibilities also include providing client support and ensuring continuity of services when primary staff are out. 4. Scheduling and Monitoring: o Inspection schedules are now reviewed monthly (between case mgr. and director) to ensure upcoming deadlines are clearly identified, monitored, and met. Outcome Expected: These corrective measures ensure that all annual HOPWA inspections will be completed on time, regardless of staffing changes or unforeseen absences. The increased number of trained staff and the implementation of a clear backup plan reduce the risk of future delays and strengthen program compliance.

Categories

Eligibility Significant Deficiency

Other Findings in this Audit

  • 1167139 2024-005
    Material Weakness Repeat
  • 1167140 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $650,236
17.274 YOUTHBUILD $561,125
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $462,660
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $408,701
21.020 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS PROGRAM $276,000
14.874 LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING $266,861
14.873 NATIVE HAWAIIAN HOUSING BLOCK GRANTS $118,560
14.169 HOUSING COUNSELING ASSISTANCE PROGRAM $30,000