FAC Explorer

Finding 20231 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-07-09
Audit: 18756
Organization: Longmont Housing Authority (CO)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: One tenant did not have the required biennial HQS inspection scheduled or completed in 2022.
  • Impacted Requirements: The program mandates inspections at least every two years to ensure compliance with HQS standards.
  • Recommended Follow-Up: Implement policies and procedures to guarantee all units are inspected biennially.

Finding Text

U.S. Department of Housing and Urban Development ? CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year ? Housing Choice Vouchers ? 2022 Special Tests and Provisions ? HQS Inspections Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: The Program requires the Authority to complete an inspection at least biennially to determine if the unit meets HQS standards. Condition: We noted one of the tenants tested for standard inspections did not have biennial HQS inspection scheduled or completed in 2022. Cause: Management oversight. Effect: The lack of controls and experience resulted in a tenant not receiving the required inspection. Questioned Costs: N/A Context/Sampling: For HQS inspections, a non-statistical sample of 40 transactions of over 250 were selected for testing. Repeat Finding from Prior Year: No. Recommendation: The Authority should implement policies and procedures to ensure that all units are inspected at least biennially. View of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Significant Deficiency in Internal Control 2022-001 Special Tests and Provisions ? HQS Inspections Repeat finding from prior year: No Finding Summary: The Program requires the Authority to complete an inspection at least biennially to determine if the unit meets HQS standards. We noted one of the tenants tested for standard inspections did not have biennial HQS inspection scheduled or completed in 2022. Responsible Individuals: Housing Compliance Manager Corrective Action Plan: Our software system has the capability of not completing a re-certification without the proper biennial HQS Inpection, this feature is now activated so a re-certification cannot be completed without the biennial inspection. Anticipated Completion Date: April 30, 2023

Categories

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions Significant Deficiency

Other Findings in this Audit

  • 20229 2022-004
    -
  • 20230 2022-004
    Significant Deficiency
  • 20232 2022-002
    Significant Deficiency
  • 20233 2022-003
    Significant Deficiency
  • 596671 2022-004
    -
  • 596672 2022-004
    Significant Deficiency
  • 596673 2022-001
    Significant Deficiency
  • 596674 2022-002
    Significant Deficiency
  • 596675 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $5.72M
21.027 Coronavirus State and Local Fiscal Recovery Funds $875,000
14.218 Community Development Block Grants/entitlement Grants $402,916
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $50,055