CORRECTIVE ACTION PLAN November 8, 2022 Birmingham Office Public Housing Division Medical Form Building 950 22nd Street North Suite 900 Birmingham, AL 35203 Dear Sir or Madam: The following details the Corrective Action Plan recommended for the March 31, 2022 audit: Name and address of independent public accounting firm: Moody & Company P. 0. Box 698 Odenville, AL 35120 PART III. FEDERAL AWARD FINDING AND QUESTIONED COST 2022-001 - Section 8 Housing Choice Vouchers Program CFDA Number: 14.871 Compliance Requirements: Special Tests and Provisions Condition and Criteria: The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(3) and 982.405(b)). For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies with 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month Page Two following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family's failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family- caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Auditors' review of HQS inspections reflected that several inspections failed and were not reinspected within the required time frame. Type of Finding: Significant Deficiency Cause: The internal control structure was not adequate to prevent these deficiencies. Effect: HAP payments were not abated. Questioned Costs: $12,612 Auditors' Recommendation: We recommend the Housing Authority strengthen its internal controls to ensure that HQS deficiencies are corrected within the required time frame. Response to Finding: The Auditors' review reflected a sampling of inspections that were for HCV participants assigned to one coordinator who was about to retire and became complacent in her job responsibilities. The internal control system to prevent this from occurring was affected by a job position change. Corrective Action Plan: An inspection company has already been contracted with to schedule all annual and follow-up inspections for all HCV participants. Additionally, internal controls have been established as part of the new Assistant Director's position. Contact Person Responsible For Corrective Action: Sharon Parker, Executive Director Anticipated Completion Date: Already completed Sincerely, Sharon Parker Executive Director