Finding 1228255 (2025-012)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-08-28

AI Summary

  • Core Issue: The Authority failed to conduct required annual Housing Quality Standards (HQS) inspections, leading to material noncompliance.
  • Impacted Requirements: Inspections must be performed annually, and reports must include inspector signatures as per HUD regulations.
  • Recommended Follow-up: Implement stronger monitoring controls to ensure compliance with HQS inspection requirements and address the repeat finding.

Finding Text

Federal Authority: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: DC001 - 2025 Award Period: October 1, 2024 – September 30, 2025 Type of Finding: • Material Noncompliance and Material Weakness in Internal Control over Compliance for Special Tests and Provisions – Annual HQS Inspections Criteria or specific requirement: The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS). The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition: • For 22 of the 60 samples, we were unable to view biennial inspections being performed. • For 3 of 60 samples, we were unable to see Inspector signature on the inspection report provided. Questioned costs: $254,638 Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements. Effect: The Authority is not in compliance with federal regulations regarding HQS inspections. Repeat Finding: Yes; 2024-024 Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordance with their administrative plan. Views of responsible officials: Management agrees with the finding. Refer to the corrective action plan on current findings in this report.

Corrective Action Plan

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879 Material Weakness in Internal Control over Compliance for Special Tests and Provisions –Annual HQS Inspections Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordance with their administrative plan. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken or planned in response to finding: The manager of inspections position will be backfilled by a person who is qualified to manage and assist the inspections supervisors with ensuring that all HQS initial, annual, biennial, and special inspections are scheduled, completed, and documented within HUDrequired timeframes. Supervisors will monitor inspection due dates through weekly compliance reports, assign overdue inspections for immediate completion. HCVP’s Quality Assurance division will conduct quality assurance reviews to verify timely processing of inspections. Name(s) of the contact person(s) responsible for corrective action: Carolyn Kornegay Punter; Aisha Thompson; Inspections Manager (Person TBD); and Khaliah Payne. Planned completion date for corrective action plan: March 31, 2027 – End of 2nd Quarter, FY2027.

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 1228246 2025-009
    Material Weakness Repeat
  • 1228247 2025-010
    Material Weakness Repeat
  • 1228248 2025-010
    Material Weakness Repeat
  • 1228249 2025-010
    Material Weakness Repeat
  • 1228250 2025-011
    Material Weakness Repeat
  • 1228251 2025-011
    Material Weakness Repeat
  • 1228252 2025-011
    Material Weakness Repeat
  • 1228253 2025-012
    Material Weakness Repeat
  • 1228254 2025-012
    Material Weakness Repeat
  • 1228256 2025-013
    Material Weakness Repeat
  • 1228257 2025-013
    Material Weakness Repeat
  • 1228258 2025-013
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.881 MOVING TO WORK DEMONSTRATION PROGRAM $474.49M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $16.03M
14.879 MAINSTREAM VOUCHERS $2.01M
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $1.49M
14.249 SECTION 8 MODERATE REHABILITATION SINGLE ROOM OCCUPANCY $1.17M
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $315,226