FAC Explorer

Finding 375665 (2023-007)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-12
Audit: 294738
Organization: City of Fairfield (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The City failed to conduct a required Housing Quality Standards (HQS) inspection within the mandated two-year timeframe.
  • Impacted Requirements: Compliance with the 2023 Compliance Supplement, which mandates biennial inspections for Section 8 Housing Choice Voucher units.
  • Recommended Follow-Up: Strengthen policies and procedures to ensure timely HQS inspections for all units.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Program/Cluster: Section 8 Housing Choice Vouchers Cluster Federal Assistance Listing Number: 14.871 Pass-through: N/A Award No. and Year: CA065 - 2023 Compliance Requirement: Special Tests and Provisions – Housing Quality Standards Inspections Type of Finding: Instance of Non-Compliance and Significant Deficiency in Internal Control over Compliance Criteria: Per the 2023 Compliance Supplement, the public housing authority (PHA) must inspect the units leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS). Condition: We identified one (1) instance in which the City did not perform the required HQS inspection within a two-year period. The inspection was performed later than two years from the previous inspection. Cause: The City’s procedures did not ensure that the unit was inspected within the required time period. Effect: The City did not comply with the HQS inspections requirements. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: The population consisted of all Section 8 Housing Choice Voucher recipients in the fiscal year (777). The sample consisted of sixty (60) recipients in the fiscal year 2023. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the City strengthen its policies and procedures related to HQS inspections to ensure that all units are inspected within the required time period. Views of Responsible Officials: Management concurs with the finding. See separate corrective action plan.

Corrective Action Plan

Finding 2023‐007 Federal Agency: U.S. Department of Housing and Urban Development Program/Cluster: Section 8 Housing Choice Voucher Cluster Federal Assistance Listing Number: 14.871 Pass‐through: N/A Award No. and Year: CA065‐2023 Compliance Requirement: Housing Quality Standards Inspection Type of Finding: Instance of Non‐Compliance and Significant Deficiency in Internal Control over Compliance Views of Responsible Officials: We concur. The Housing Authority will ensure that HQS inspections are completed at least biennially for all units in the program. Each Housing Specialist maintains a tabulation of inspection deadlines for each unit; hence, 98% of the 60‐unit test group was completed on time. However, Management will more frequently monitor the inspection deadlines with the specialist to avoid even a 2% margin of error, as indicated in this audit assessment. Responsible Individual(s): Tanya Tran, Housing Division Manager Anticipated Completion Date: June 1, 2024

Categories

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

Other Findings in this Audit

  • 375659 2023-004
    Material Weakness
  • 375660 2023-005
    Significant Deficiency
  • 375661 2023-005
    Significant Deficiency
  • 375662 2023-005
    Significant Deficiency
  • 375663 2023-005
    Significant Deficiency
  • 375664 2023-006
    Material Weakness
  • 375666 2023-008
    Material Weakness
  • 952101 2023-004
    Material Weakness
  • 952102 2023-005
    Significant Deficiency
  • 952103 2023-005
    Significant Deficiency
  • 952104 2023-005
    Significant Deficiency
  • 952105 2023-005
    Significant Deficiency
  • 952106 2023-006
    Material Weakness
  • 952107 2023-007
    Significant Deficiency
  • 952108 2023-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $10.22M
20.507 Federal Transit_formula Grants $1.52M
20.507 Covid-19 Federal Transit_formula Grants $1.03M
97.083 Staffing for Adequate Fire and Emergency Response (safer) $1.01M
20.205 Highway Planning and Construction $657,978
14.231 Covid-19 Emergency Solutions Grant Program $473,706
12.003 Community Economic Adjustment Assistance for Responding to Threats to the Resilience of A Military Installation (b) $411,585
14.218 Covid-19 Community Development Block Grants/entitlement Grants $359,474
14.218 Community Development Block Grants/entitlement Grants $346,177
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $215,000
14.239 Home Investment Partnerships Program $155,369
20.600 State and Community Highway Safety $142,546
97.044 Covid-19 Assistance to Firefighters Grant $71,483
16.738 Edward Byrne Memorial Justice Assistance Grant Program $5,715