Finding 1222205 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-30

AI Summary

  • Core Issue: The Authority failed to conduct required Housing Quality Standards (HQS) Quality Control Inspections during the fiscal year.
  • Impacted Requirements: HUD regulations mandate that Housing Authorities perform and document these inspections to ensure compliance and quality assurance.
  • Recommended Follow-Up: Establish written procedures for scheduling and documenting HQS Quality Control Inspections, and regularly monitor compliance to ensure inspections are completed.

Finding Text

Federal Program: Housing Choice Voucher Program (ALN 14.871) Compliance Requirement: Special Tests and Provisions – HQS Quality Control Inspections Criteria HUD regulations require Housing Authorities to perform supervisory Housing Quality Standards (HQS) Quality Control Inspections as part of their quality assurance process to ensure inspections are performed consistently and in accordance with HUD requirements. Condition The Authority did not perform the required HQS Quality Control Inspections during the fiscal year. No documentation was available to demonstrate that supervisory quality control inspections had been completed. Cause Management had not established procedures to ensure required HQS Quality Control Inspections were scheduled, performed, documented, and monitored. Effect Without performing required quality control inspections, management cannot adequately monitor the quality and consistency of HQS inspections or ensure deficiencies are identified and corrected timely. This increases the risk that units may not comply with HUD Housing Quality Standards. Recommendation We recommend the Authority establish written procedures requiring supervisory quality control inspections in accordance with HUD regulations. Management should maintain documentation of inspections performed and periodically monitor compliance to ensure required inspections are completed. Views of Responsible Officials Management concurs with the finding and will implement procedures to ensure that HQS Quality Control inspections are performed and properly documented in accordance with HUD requirements.

Corrective Action Plan

Compliance Requirement: Special Tests and Provisions – HQS Quality Control Inspections Management’s Response Management acknowledges the deficiency identified during the audit and has implemented corrective measures to strengthen internal controls over compliance. The Housing Authority is committed to enhancing its quality control procedures, improving supervisory oversight, and ensuring compliance with HUD requirements. The following actions have been implemented or are in the process of being implemented: • Implement Enhanced Quality Control • Conduct monthly QC reviews of a sample of income determinations. • Document findings and corrective actions in a QC log. • Provide coaching or retraining for staff when errors are identified. • Ongoing Monitoring & Accountability • Supervisors will review income calculations for accuracy before final approval. • QC results will be discussed in monthly performance meetings. • Trends or recurring issues will be addressed through updated procedures or additional training. Responsible Officials: HCV Program Administrator and Executive Director Anticipated Completion Date: September 30, 2026

Categories

HUD Housing Programs Special Tests & Provisions

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $2.98M
14.850 PUBLIC HOUSING OPERATING FUND $458,360
14.872 PUBLIC HOUSING CAPITAL FUND $203,104