Finding 32034 (2022-004)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-05-29
Audit: 37231
Organization: City of Ashland (KY)

AI Summary

  • Core Issue: The PHA failed to conduct the required number of quality control re-inspections, completing only 12 out of 13 needed.
  • Impacted Requirements: Compliance with 24 CFR § 982, which mandates a proper sample size and independent inspectors for quality control inspections.
  • Recommended Follow-Up: Ensure future re-inspections meet the required sample size and are conducted by different individuals than those who performed the original inspections.

Finding Text

2022-004 FEDERAL COMPLIANCE ? QUALITY CONTROL INSPECTIONS Federal Program Name: Housing Choice Voucher Program Catalog of Federal Domestic Assistance Number: 14.871 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Special Tests and Provisions Criteria: 24 CFR ? 982 includes requirements and guidelines for PHA?s to perform Housing Quality Standards (?HQS?) inspections for all housing units and quality control re-inspections for a sample of units every year. The sample size of units selected for quality control re-inspections are to be calculated in accordance 24 CFR ? 982.2(b). Condition: We noted that the PHA should have performed 13 quality control re-inspections, but only completed 12. However, 1 of those re-inspections was performed by the same individual performing the original inspection on the same day of the original inspection. Additionally, all of the re-inspections were completed for units at the Harbor Hill complex and, therefore, do not represent a cross section of neighborhoods. Effect and Questioned Costs: Noncompliance with HUD requirements. Repeat Finding: No Recommendation: We recommend that the PHA comply with quality control re-inspection requirements by calculating the appropriate sample size with the sample representing a cross section of neighborhoods and that the re-inspections be performed by someone other than the individual or completed the original inspection. Management?s Response: Quality Control inspections are currently being scheduled as per 24 CFR 982.2(b). Inspections will be performed on both Section 8 properties and Project Based properties. All QC inspections will be completed by Property Maintenance Manager.

Corrective Action Plan

Quality Control inspections are currently being scheduled as per 24 CFR 982.2(b). Inspections will be performed on both Section 8 properties and Project Based properties. All QC inspections will be completed by Property Maintenance Manager.

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 32031 2022-001
    Material Weakness
  • 32032 2022-002
    Material Weakness
  • 32033 2022-003
    Material Weakness
  • 32035 2022-005
    Material Weakness
  • 32036 2022-006
    Material Weakness
  • 32037 2022-007
    Material Weakness
  • 32038 2022-008
    Material Weakness
  • 608473 2022-001
    Material Weakness
  • 608474 2022-002
    Material Weakness
  • 608475 2022-003
    Material Weakness
  • 608476 2022-004
    Material Weakness
  • 608477 2022-005
    Material Weakness
  • 608478 2022-006
    Material Weakness
  • 608479 2022-007
    Material Weakness
  • 608480 2022-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $3.54M
20.507 Federal Transit_formula Grants $974,424
14.218 Community Development Block Grants/entitlement Grants $315,263
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $59,522
95.001 High Intensity Drug Trafficking Areas Program $48,379
20.616 National Priority Safety Programs $520