Finding 1220316 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-29

AI Summary

  • Core Issue: The PHA failed to conduct required bi-annual inspections and did not document timely corrections for life-threatening deficiencies.
  • Impacted Requirements: Compliance with Housing Quality Standards (HQS) inspections and timely corrective actions.
  • Recommended Follow-Up: Review and improve procedures for HQS inspections and documentation to ensure standards are met.

Finding Text

Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency Grant Award No. MN192-Housing Choice Voucher & MN192-Mainstream Voucher Federal Award Year 2025 Criteria The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS). For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. Condition Through a series of samples, it was noted that a bi-annual inspection was not performed on one tested file. We also noted 2 separate instances in which life-threatening deficiencies did not contain documentation noting they were corrected within the 24-hour requirement period, and an additional instance in which other deficiencies did not contain documentation as to the timing of corrective action. Questioned Costs None Context We tested HQS Enforcement compliance requirements on 23 of the Authority’s 229 tenant files and noted that a bi-annual inspection did not occur in one of the files. In a separate sample over failed inspections, in which 4 of 40 failed inspections were reviewed, we noted 2 contained life-threatening failures that did not contain documentation to support appropriate follow up and correction within 24 hours. Across both samples, there were also instances in which supporting documentation lacked notations of timing to indicate when re-inspections and corrective action took place. Effect Tenants may be living in units that do not meet Housing Quality Standards. Cause Lack of controls and oversight during the year. Repeat Finding Repeat finding of 2024-006. Recommendation We recommend the Authority review their procedures for performing and documenting HQS inspections and follow-up on fails to ensure Housing Quality Standards are met. Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.

Corrective Action Plan

Contact Person Emajean Hanson-Ford, Executive Director Corrective Action Plan The Authority has reviewed their procedures for performing and documenting follow up of HQS inspections to ensure compliance moving forward. Planned Completion Date for CAP December 31, 2026

Categories

HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 1220314 2025-002
    Material Weakness Repeat
  • 1220315 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.415 RURAL RENTAL HOUSING LOANS $209,261
14.872 PUBLIC HOUSING CAPITAL FUND $124,375
14.879 MAINSTREAM VOUCHERS $95,849
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $60,727
10.433 RURAL HOUSING PRESERVATION GRANTS $42,575
14.850 PUBLIC HOUSING OPERATING FUND $34,536
10.427 RURAL RENTAL ASSISTANCE PAYMENTS $852