Finding 1223992 (2025-004)

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: Insufficient oversight led to missed bi-annual inspections and failure to document timely corrections of life-threatening deficiencies.
  • Impacted Requirements: The PHA must ensure all Housing Quality Standards (HQS) deficiencies are corrected within specified timeframes to avoid improper HAP payments.
  • Recommended Follow-Up: Review and improve procedures for conducting and documenting HQS inspections to ensure compliance and timely corrections.

Finding Text

2025-004 Special Tests and Provisions – HQS Enforcement 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 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. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract (24 CFR sections 982.158(d) and 982.404). Condition Through a series of samples, it was noted that a bi-annual inspection was not performed on one tested file. We also noted 1 separate instance in which life-threatening deficiencies did not contain documentation noting they were corrected within the 24-hour requirement period. Context We selected 40 tenants to sample out of 370 total for the year. Effect HAP payments could be paid to a tenant where they should not be due to insufficient clearing of HQS inspection deficiencies. Cause Lack of controls and oversight during the year. Repeat Finding Not a repeat finding. 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 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
  • 1223988 2025-002
    Material Weakness Repeat
  • 1223989 2025-003
    Material Weakness Repeat
  • 1223990 2025-003
    Material Weakness Repeat
  • 1223991 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