FAC Explorer

Finding 1191838 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 395651
Organization: The Housing Authority of the County of Kern (CA)
Auditor: DANIELLS PHILLIPS VAUGHAN & BOCK

AI Summary

  • Core Issue: The Authority failed to complete annual Housing Quality Standard (HQS) Inspections on time for 20 out of 40 residents tested.
  • Impacted Requirements: This non-compliance violates regulations outlined in 24 CFR sections 982.401 through 982.405, which mandate timely inspections for housing assistance.
  • Recommended Follow-Up: Management should revise the Section 8 Administrative Plan to align inspection policies with federal regulations to avoid funding risks.

Finding Text

FA-2025-001 Moving to Work Demonstration Program, United States Department of Housing and Urban Development, Federal Assistance listing number #14.881. Condition: The Authority did not complete the annual Housing Quality Standard (HQS) Inspection within the required time frame for twenty of forty residents tested. The annual HQS Inspection was not completed for eight of the twenty residence and for the remaining twelve residence the HQS Inspections were completed by were not timely as they were performed subsequent to the required date of completion. Criteria: The Housing Choice Voucher program regulations at 24 CFR sections 982.401 through 982.405 set forth basic housing quality standards (HQS) which all units must meet, and the Authority must verify by inspection, before initial assistance can be paid on behalf of a family and at least annually throughout the terms of the assisted tenancy. Cause: Per the Authority’s Section 8 Administrative Plan, Section 7A. Inspection of Units “The Authority will inspect all units to ensure that they meet HQS. No unit will be initially placed on the Section 8 Existing program unless HQS is met. Units will be inspected at least biennially, and at other times as needed, to determine if the units meet HQS.” The Authority’s Section 8 Administrative Plan does not comply with the requirements of 24 CFR sections 982.401 through 982.405. Effect: The error could result in the loss or reduction of funding for failure to comply with the requirements set forth by the funding agency. Recommendation: Management should review their current Section 8 Administrative Plan, Section 7A, Inspection of Units to ensure that the policies and procedures adopted and enforced by the Authority comply with the program regulations.

Corrective Action Plan

FA-2025-001 Moving to Work Demonstration Program, United States Department of Housing and Urban Development, Federal Assistance listing number #14.881. Management’s Response/Planned Corrective Action: The Authority acknowledges the finding related to untimely and incomplete Housing Quality Standards (HQS) inspections under the Moving to Work Demonstration Program (Assistance Listing #14.881). To correct the deficiencies noted and ensure full alignment with HUD regulatory requirements, the Authority has undertaken the following corrective actions: 1. Immediate Staffing Intervention and Backlog Elimination: To address the substantial number of past-due inspections, the Authority hired two temporary inspectors dedicated exclusively to completing all overdue HQS inspections. This focused initiative was active from June 2025 through December 2025 and successfully brought delinquent inspections current. 2. Establishment of Permanent Oversight Structure: In December 2025, the Authority hired a full-time Lead Inspector to oversee all aspects of the HQS process. This position is responsible for: o Ensuring compliance with 24 CFR §§ 982.401–982.405 o Implementing quality control measures o Monitoring inspection timeliness o Supervising inspection staff and coordinating workload assignments o Ensuring that internal policies fully align with HUD requirements, including correction of Administrative Plan Section 7A 3. Implementation of Bi-Weekly Internal Compliance Audits: To ensure ongoing adherence to HQS requirements, the Authority has instituted bi-weekly internal audits. Under this process: o A program administrator reviews a sample of completed HQS inspections o Timeliness, accuracy, documentation, and system entries are verified o Any identified deficiencies are corrected immediately and used for staff retraining 4. Ongoing Training and Compliance Reinforcement: All inspection staff have received updated training on HQS requirements, inspection timelines, documentation standards, and the Administrative Plan. Additional refresher training will be conducted at least annually or whenever regulatory guidance is updated. Anticipated Completion Date: All corrective actions described above have already been implemented or are currently in the final stages of implementation. Responsible Officials • Housing Administrator over Voucher Programs – Oversight of HQS compliance and policy revision • Lead Inspector (HQS) – Daily operational management of inspections • Assistant Executive Director – Monitoring of audit controls and QA reviews

Categories

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Programs in Audit

ALN Program Name Expenditures
14.881 MOVING TO WORK DEMONSTRATION PROGRAM $41.77M
14.872 PUBLIC HOUSING CAPITAL FUND $7.22M
14.267 CONTINUUM OF CARE PROGRAM $4.55M
14.850 PUBLIC HOUSING OPERATING FUND $3.18M
10.415 RURAL RENTAL HOUSING LOANS $2.03M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.99M
14.879 MAINSTREAM VOUCHERS $694,143
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $425,576
10.427 RURAL RENTAL ASSISTANCE PAYMENTS $415,899
14.869 TITLE VI FEDERAL GUARANTEES FOR FINANCING TRIBAL HOUSING ACTIVITIES $225,113
93.917 HIV CARE FORMULA GRANTS $193,099
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $73,125
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $33,955