Finding 1220820 (2025-001)

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

AI Summary

  • Core Issue: The Agency failed to conduct and document biennial inspections for 5 out of 40 tenant files, violating Housing Quality Standards.
  • Impacted Requirements: Compliance with Housing Quality Standards requires biennial inspections and quality control re-inspections.
  • Recommended Follow-Up: Review and improve the inspection scheduling and tracking system to ensure timely inspections and proper documentation.

Finding Text

Finding: 2025-001 Program Name: Housing Voucher Cluster (14.871-CL) Federal Awarding Agency: Department of Housing and Urban Development Compliance Requirement: Housing Quality Standards Type of Finding: Significant Deficiency; Nonmaterial Noncompliance Criteria: The Agency must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards and the PHA must conduct quality control re-inspections. Condition: Of the 40 tenant files tested, 5 files did not contain documentation that the biennial inspection was performed. Cause: Controls were not in place to ensure that biennial inspections were performed as required. Effect: The Agency was not in compliance with Housing Quality Standards compliance requirements for the year ended September 30, 2025. Auditor Recommendation: We recommend the Agency review its inspection scheduling and tracking system to ensure inspections are completed biennially and documentation is maintained regarding the results of the inspections. Questioned Costs: None. Management’s Response: Management acknowledges the finding and notes that the error was caused by a software issue that has since been corrected. Upon discovery, the agency immediately remedied the issue with all impacted households and conducted a comprehensive review to determine the scope of the issue. The review identified 68 impacted households out of 6,440 total Housing Choice Voucher program households, representing less than 1% of the total program population.

Corrective Action Plan

Finding Reference: 2025-001 Program Name: Housing Voucher Cluster (14.871-CL) Description of Finding: HUD regulations require the Agency to inspect the unit leased to a family at least biennially to determine if the unit meets Housing Qualify Standards and must conduct quality control reinspections. Of the 40 files tested, 5 files did not contain documentation that the biennial inspection was performed. Statement of Concurrence or Nonconcurrence: Metropolitan Development and Housing Agency agrees with Cherry Bekaert in reference to audit finding 2025-001. Corrective Action: Management acknowledges the finding and notes that the error was caused by a software issue that has since been corrected. Upon discovery, the agency immediately remedied the issue with all impacted households and conducted a comprehensive review to determine the scope of the issue. The review identified 68 impacted households out of 6,440 total Housing Choice Voucher program households, representing less than 1% of the total program population.

Categories

HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 1220818 2025-001
    Material Weakness Repeat
  • 1220819 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $35.74M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $19.23M
14.267 CONTINUUM OF CARE PROGRAM $2.64M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $2.56M
14.879 MAINSTREAM VOUCHERS $2.45M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $2.24M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $2.02M
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $819,783
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $498,480
93.137 COMMUNITY PROGRAMS TO IMPROVE MINORITY HEALTH GRANT PROGRAM $489,687
14.249 SECTION 8 MODERATE REHABILITATION SINGLE ROOM OCCUPANCY $454,616
81.042 WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS $444,951
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $287,325
16.817 BYRNE CRIMINAL JUSTICE INNOVATION PROGRAM $260,620
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $217,311
14.850 PUBLIC HOUSING OPERATING FUND $172,980
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $66,774
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $43,819