Finding 22517 (2022-003)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: The Authority lacks adequate policies and procedures for managing the Housing Choice Voucher program, leading to insufficient documentation of Housing Quality Standards (HQS) inspections.
  • Impacted Requirements: Compliance with HUD regulations regarding timely HQS inspections and documentation is not being met, risking the quality of assisted housing.
  • Recommended Follow-Up: Implement a tracking system for HQS inspections and establish supervisory quality control to ensure adherence to policies and HUD requirements.

Finding Text

U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Finding 2022-003: HCV Program Management - HUD Monitoring Review Special Tests and Provisions Housing Voucher Cluster ? CFDA #14.871 Material Weakness Statement of Condition HUD conducted a Monitoring Review in September 2022 resulting in 23 findings pertaining to the Housing Voucher Cluster primarily pertaining to the lack of sufficient policies and procedures to administer the Housing Choice Voucher program. In addition, the audit noted that the Authority was unable to provide documentation for HQS inspections conducted or enforcement actions taken. Criteria The Authority is to ensure that leased units meet Housing Quality Standards prior and during the term of occupancy in accordance with HUD rules and regulations. Cause The Authority relied on the former Executive Director to conduct HQS inspections and such prior inspections were not tracked and/or documented in participant files. Effect or Potential Effect Staff was unable to effectively monitor, or track inspection deadlines and units were assisted without conducting HQS inspections within the required timeframes. Context A sample of 15 files were selected to audit HQS inspections from a population of 110. The test found five files lacked a current year inspection including three of which that indicated prior failed HQS items without evident of enforcement or passed inspection from the prior year. Recommendation The Authority must conduct, track, and enforce HQS inspection in accordance with its HCV Administrative Plan, as currently revised. In addition, the Authority should implement a process for supervisory quality control HQS inspection to ensure adherence to its policies and comply with HUD Requirements. Management?s Response Management agrees with finding, see Corrective Action Plan for plan of action.

Corrective Action Plan

Windsor Locks Housing Authority 120 Southwest Ave Windsor Locks, CT 06096 Phone (860) 627-1455 Fax (860) 292-5994 Email: wlha@wlocks.com CORRECTIVE ACTION PLAN 2022-003 ? HCV Program Management-HUD Monitoring Review, CFDA #14.871 Compliance Requirement: Activities Allowed or Unallowed Type of Finding: Noncompliance, Material Weakness Auditee?s Response and Planned Corrective Action In order to properly monitor inspection deadlines and compliance with HQS inspections, the Interim Executive Director worked with the board and HUD to draft new policies and procedures to ensure compliance with future HQS inspections. These updated policies were voted on and accepted by the board to be implement by the Interim Executive Director and subsequently DeMarco Management Corporation. Additional consideration is being given to arranging for third party [pre-]inspections. Regardless training related to HQS inspections will be made available to staff. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Windsor Locks Management Company and Board Members while working with the Fee Accountant and at first the Interim Executive Director followed by DeMarco Management Corporation after their hire on 2/1/23.

Categories

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring Material Weakness

Other Findings in this Audit

  • 22516 2022-002
    Significant Deficiency
  • 598958 2022-002
    Significant Deficiency
  • 598959 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.18M
14.850 Public and Indian Housing $317,703