Finding Text
U.S. Department of Housing and Urban Development Pass-through Entity: City of Charlotte, North Carolina Program Name: Home Investment Partnerships Program Federal Assistance Listing Number: 14.239 Significant Deficiency – Special Tests: Housing Quality Standards Finding 2025-003 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For all five (5) properties tested, while they all occurred, the Organization did not have formal documentation evidencing review and approval of Housing Quality Standards inspection reports by an individual independent of the preparer. Questioned Costs: None noted. Effect: By not having sufficient documentation, the Organization cannot demonstrate that Housing Quality Standards inspections were appropriately reviewed, increasing the risk that units may not consistently meet required housing quality standards. Cause: The Organization does not have a formal policy or standardized process requiring documentation of supervisory review and approval of Housing Quality Standards inspection reports. Recommendation: The Organization should consider implementing a formal policy requiring documented supervisory review and approval of all Housing Quality Standards inspection reports and retain such documentation to evidence compliance with program requirements. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.