Finding 22400 (2022-005)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-06-19

AI Summary

  • Core Issue: One annual inspection was missing, and two failed inspections were not rechecked on time, including a life-threatening issue.
  • Impacted Requirements: The Commission did not meet federal standards for housing quality inspections as per 24 CFR Section 982.158(d).
  • Recommended Follow-Up: Implement new policies to ensure compliance with housing quality inspection requirements and strengthen internal controls.

Finding Text

Finding 2022-005 Statement of Condition: During the review of tenant files it was noted 1 out of 25 annual inspections could not be located, noted 2 out of 25 annual inspections had failed and were not reinspected within the appropriate timeframe, including one that was considered life threatening. Criteria: N. SPECIAL TESTS AND PROVISIONS ITEM 4. HOUSING QUALITY INSPECTIONS AND ITEM 5. HQS ENFORCEMENT: 24 CFR Section 982.158(d) requires a PHA to perform a quality inspection yearly and reinspect any failed inspections with 24 hours for life threatening items or 30 days for non-life threatening items. Perspective Information: The Commission did not have effective internal controls over HQS inspections. Questioned Costs: Unknown. Effect: The Commission is not in compliance with the requirements as outlined in the special tests and provisions, housing quality inspections and HQS enforcement sections above. Cause: Lack of controls over grant requirements. Recommendation: The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to housing quality inspections and HQS enforcement. Management?s Response: New management has taken over the Commission subsequent to the period under audit and will implement stronger internal controls over housing quality inspections.

Corrective Action Plan

Housing Choice Vouchers ? CFDA 14.871 Recommendation: The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to housing quality inspections and HQS enforcement. Action Taken: New management has taken over the Commission subsequent to the period under audit and will implement stronger internal controls over housing quality inspections. Anticipated Completion Date of Action: June 15, 2023

Categories

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

Other Findings in this Audit

  • 22397 2022-002
    Significant Deficiency Repeat
  • 22398 2022-003
    Material Weakness
  • 22399 2022-004
    Material Weakness
  • 22401 2022-006
    Material Weakness
  • 598839 2022-002
    Significant Deficiency Repeat
  • 598840 2022-003
    Material Weakness
  • 598841 2022-004
    Material Weakness
  • 598842 2022-005
    Material Weakness
  • 598843 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $669,558
14.850 Public and Indian Housing $434,310
14.872 Public Housing Capital Fund $113,744