Finding 1227610 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-08-24
Audit: 409622
Organization: Chattanooga Housing Authority (TN)

AI Summary

  • Core Issue: The Authority failed to conduct timely repairs for housing quality inspection deficiencies, impacting compliance with federal standards.
  • Impacted Requirements: Annual housing quality inspections must ensure units are decent, safe, and sanitary, which was not met for 18 out of 40 sampled units.
  • Recommended Follow-Up: Implement a process to ensure timely repairs and maintain documentation, potentially using technology to streamline the inspection reporting process.

Finding Text

Finding: 2025-001 Program Name: Section 8 Project Based Cluster (14.195-CL) Federal Awarding Authority: Department of Housing and Urban Development Compliance Requirement: Special Tests - Housing Quality Standards Inspections Type of Finding: Material Weakness; Material Noncompliance Criteria: The Authority must perform housing quality inspections at the time of initial occupancy and at least annually to ensure the units are decent, safe and sanitary. Condition: 18-unit inspection reports out of a sample of 40 units contained deficiencies that were not repaired or were not repaired timely. Cause: The Authority did not have appropriate controls in place over housing quality inspections to ensure deficiencies are repaired timely. Effect: The Authority was not in compliance with the housing quality inspection compliance requirements for the year ended December 31, 2025. Auditor Recommendation: The Authority should implement a process to ensure inspection deficiencies are repaired timely and documentation of repairs is maintained. Questioned Costs: None. Management’s Response: We currently have a process to respond to all life-threatening and health and safety inspection deficiencies in a timely manner. To improve the process for all other inspection deficiencies, we are working on a way to use technology to automatically import inspection findings into our system instead of manually entering each work order. This will reduce the time it takes to create work orders, allowing repairs to be completed more quickly. The system will also provide documentation of completed repairs, helping ensure records are maintained.

Corrective Action Plan

Finding Reference: 2025-001 Description of Finding: The Authority did not perform timely repairs on 18 units in accordance with housing quality inspection requirements. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Action: We currently have a process to respond to all life-threatening and health and safety inspection deficiencies in a timely manner. To improve the process for all other inspection deficiencies, we are working on a way to use technology to automatically import inspection findings into our system instead of manually entering each work order. This will reduce the time it takes to create work orders, allowing repairs to be completed more quickly. The system will also provide documentation of completed repairs, helping ensure records are maintained.

Categories

HUD Housing Programs Material Weakness Special Tests & Provisions

Other Findings in this Audit

  • 1227611 2025-002
    Material Weakness Repeat
  • 1227612 2025-003
    Material Weakness Repeat
  • 1227613 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 PUBLIC AND INDIAN HOUSING $9.06M
14.889 CHOICE NEIGHBORHOODS IMPLEMENTATION GRANTS $5.08M
14.872 PUBLIC HOUSING CAPITAL FUND $3.62M
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM $3.38M
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $1.56M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $1.22M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $289,012
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $281,358
14.879 MAINSTREAM VOUCHERS $237,954
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $142,210
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $83,610