Finding 37532 (2022-001)

- Repeat Finding

Requirement

Questioned Costs

Year

2022

Accepted

2022-12-29

Audit: 31693

Organization: Springfield Housing Authority (MA)

Auditor: Dooley & Vicars CPAS LLP

AI Summary

Core Issue: The Authority did not document annual Housing Quality Standards (HQS) inspections as required.
Impacted Requirements: Compliance with HUD regulations mandates annual inspections and documentation for Housing Choice Voucher program units.
Recommended Follow-up: Enhance oversight and quality control to ensure timely completion and documentation of annual inspections.

Finding Text

Finding No. 2022-001 ? CFDA No. 14.871 ? Special Tests and Provisions CONDITION: The Authority failed to document annual Housing Quality Standards (HQS) inspections in accordance with its Administrative Plan and HUD regulations. CRITERIA: PHAs are required to inspect units leased to Housing Choice Voucher program participants at least annually and prepare unit inspection reports in accordance with 21 CFR 982.158(d). QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: During audit fieldwork, 40 HAP contract files from a statistically valid sample were examined for compliance with annual HQS inspection requirements. Of the 40 files examined, nine (9) files did not contain current annual inspection reports. EFFECT: The Authority is not in compliance with federal regulations regarding HQS inspections and documentation. This could result in unallowable HAP payments to owners of units that do not meet required Housing Quality Standards. CAUSE: The overall cause was a lack of management oversight and quality control over this program. RECOMMENDATION: The Authority should implement greater oversight over the Housing Choice Voucher program to ensure that annual inspections are completed and documented at least annually as required. The Authority indicated in the 2021 Corrective Action plan they hope to have a process in place for this by October 1, 2022, after the conclusion of this period under audit.

Corrective Action Plan

12/28/2022 SHA CORRECTIVE ACTION Finding Number 2022-001 CFDA No. 14.871 Special Tests and Provisions The Authority failed to document annual Housing Quality Standards (HQS) inspections in accordance with its Administrative Plan and HUD regulations. 1. Inspector Shortage ? SHA?s two long term inspectors resigned during the Covid-19 pandemic. SHA used a temporary inspection contractor while in the process of hiring three new inspectors during a nationwide staffing shortage. Three inspectors were hired and training is ongoing. Person Responsible ? Blanca Berrios, Director of RAO, Fidan Gousseynoff, Director of HR. Status ? Hiring Complete, Training completed 10/1/2022 2. Software implementation ? SHA is in the final stages of implementing YARDI. Yardi will take the place of our current outdated software. This will allow for better tracking of HQS inspections. Person Responsible- Blanca Berrios, Director of RAO and Stephen Ethier, Director of IT. Status ? Completed 10/1/2022

Other Findings in this Audit

37533 2022-002

- Repeat
37534 2022-001

- Repeat
37535 2022-002

- Repeat
613974 2022-001

- Repeat
613975 2022-002

- Repeat
613976 2022-001

- Repeat
613977 2022-002

- Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.871	Section 8 Housing Choice Vouchers	$30.04M
14.872	Public Housing Capital Fund	$2.61M
14.182	Section 8 New Construction and Substantial Rehabilitation	$711,704
14.879	Mainstream Vouchers	$262,429
14.850	Public and Indian Housing	$167,709
14.870	Resident Opportunity and Supportive Services - Service Coordinators	$70,813
14.249	Section 8 Moderate Rehabilitation Single Room Occupancy	$32,535