Finding 1223988 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-07-19
Audit: 407412
Organization: Stark County Housing Authority (ND)
Auditor: BRADY MARTZ PLLC

AI Summary

  • Core Issue: The Authority failed to conduct the required number of quality control re-inspections for Housing Quality Standards.
  • Impacted Requirements: Inspections must occur biennially, with a minimum of 10 units sampled; only 1 was sampled in 2025.
  • Recommended Follow-Up: Implement procedures to ensure compliance with quality control inspection requirements.

Finding Text

2025-002 Special Tests and Provisions – HQS Quality Control Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 Grant Award No. ND031-Housing Choice Vouchers & ND031-Mainstream Vouchers Grant Award Year 2025 Questioned Costs None. Criteria The Authority must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS), and the PHA must conduct quality control reinspections (24 CFR sections 982.305 and 982.405). Condition The minimum required number of quality control re-inspections were not performed. Context With an average of 302 vouchers in 2025, the Authority was required to sample 10 units. It was noted during testing that the Authority only sampled one. Effect Inspections may have been performed incorrectly, and potential errors would go undetected. Cause Lack of controls and oversight during the year. Repeat Finding Not a repeat finding. Recommendation We recommend that the Authority implement procedures to ensure that the required number of quality control inspections are performed. Views of Responsible Officials The Authority recognizes the deficiency and plans to implement the auditor’s recommendations.

Corrective Action Plan

Contact Person Derek Johnson, Managing Agent Corrective Action Plan The Authority recognizes the deficiency and plans to implement the auditor's recommendations. Planned Completion Date for CAP Immediately.

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 1223985 2025-001
    Material Weakness Repeat
  • 1223986 2025-001
    Material Weakness Repeat
  • 1223987 2025-002
    Material Weakness Repeat
  • 1223989 2025-003
    Material Weakness Repeat
  • 1223990 2025-003
    Material Weakness Repeat
  • 1223991 2025-004
    Material Weakness Repeat
  • 1223992 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $2.23M
14.879 MAINSTREAM VOUCHERS $178,538
14.182 SECTION 8 NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION $55,047
10.415 RURAL RENTAL HOUSING LOANS $18,269