Finding 1168754 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-12
Audit: 380849
Organization: Center for Housing and Health (IL)

AI Summary

  • Core Issue: One out of forty housing quality surveys lacked necessary documentation, risking compliance with health and safety standards.
  • Impacted Requirements: Housing must meet HOPWA Habitability Standards and proper inspections must be documented as per 24 CFR sections 574.310(b)(1)-(2).
  • Recommended Follow-Up: Ensure all inspection documentation is maintained before lease execution and conduct annual inspections during occupancy; management is implementing quarterly internal audits to address this.

Finding Text

Federal program: AL #14.241 Housing Opportunities for Persons With Aids FY/Federal Award ID#: FY2025/See Schedule of Federal Expenditures Federal agency: Department of Urban Development Pass thru entity: AIDS Foundation of Chicago Criteria: The PHA or owner must provide housing that is decent, safe, and sanitary. All housing that involves acquisition, rehabilitation, conversion, lease, repair of facilities, new construction, project-or tenant-base rental assistance (including assistance for shared housing arrangements), and operation costs must meet housing quality standards required at 24 CFR sections 574.310(b)(1)-(2) also known as the HOPWA Habitability Standards. HOPWA grantees must perform housing quality inspections to ensure that the units meet required HOPWA Housing Quality Standards (HQS). Condition: One out of forty selections did not include support that the Organization's housing quality survey was completed or other supplemental documentation to satisfy the criteria above. The sample was not statistically valid. Questioned Costs: None noted. Cause: Lack of maintaining required compliance documentation per the Organization's policies and procedures. Effect: If supporting documentation of HQS inspection is not maintained there is a reasonable possibility that rental assistance may be provided for a unit that does not meet required health and safety standards. Recommendation: The Organization should ensure that documentation is maintained related to inspection of rental units prior to authorizing client lease execution and move-in as well as subsequent inspections at least annually during assisted occupancy. Views of Responsible Officials: Management concurs and is putting safeguards in place to ensure all documentation, including the housing quality survey, is maintained related to inspection of rental units prior to authorizing lease execution and move-in. These safeguard include internal program audits of a sample of files on a quarterly basis.

Corrective Action Plan

Finding: We noted through audit procedures that one out of forty selections did not include support that the Organization's housing quality survey was completed or other supplemental documentation to satisfy the requirement. Corrective Action Taken or Planned: Management is putting safeguards in place to ensure all documentation, including the housing quality survey, is maintained related to inspection of rental units prior to authorizing lease execution and move_x0002_in. These safeguards include internal program audits of a sample of files on a quarterly basis. Anticipated Date of Completion: December 31, 2025 Name of Contact Person: Beth Frantz, Chief Finance Officer

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1168746 2025-001
    Material Weakness Repeat
  • 1168747 2025-001
    Material Weakness Repeat
  • 1168748 2025-001
    Material Weakness Repeat
  • 1168749 2025-001
    Material Weakness Repeat
  • 1168750 2025-001
    Material Weakness Repeat
  • 1168751 2025-001
    Material Weakness Repeat
  • 1168752 2025-001
    Material Weakness Repeat
  • 1168753 2025-001
    Material Weakness Repeat
  • 1168755 2025-002
    Material Weakness Repeat
  • 1168756 2025-002
    Material Weakness Repeat
  • 1168757 2025-002
    Material Weakness Repeat
  • 1168758 2025-002
    Material Weakness Repeat
  • 1168759 2025-002
    Material Weakness Repeat
  • 1168760 2025-002
    Material Weakness Repeat
  • 1168761 2025-002
    Material Weakness Repeat
  • 1168762 2025-002
    Material Weakness Repeat
  • 1168763 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.267 CONTINUUM OF CARE PROGRAM $2.46M
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $290,492
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $289,942
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $225,362
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $29,800