FAC Explorer

Finding 380639 (2022-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-03-15
Audit: 295391
Organization: Wicomico County Housing Authority (MD)
Auditor: Sb & Company LLC

AI Summary

  • Core Issue: The Authority failed to update utility allowance schedules and conduct annual inspections for Housing Quality Standards (HQS).
  • Impacted Requirements: Non-compliance with 24 CFR Section 982 regarding utility data reviews and unit inspections.
  • Recommended Follow-Up: Enhance internal controls to ensure annual updates of utility allowances and regular inspections for HQS compliance.

Finding Text

Criteria: In accordance with various subsections of 24 CFR Section 982, the Authority is required to: • review utility rate data at least annually and update the utility allowance schedule as necessary; • inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards ("HQS"); and Condition: The Authority did not: • provide updated utility allowance schedules; • inspect the units to determine if they meet HQS; and Context: Of the 40 selections made, the Authority did not: • provide updated utility allowance schedules for three selections; • provide support for inspections to determine if the unit met HQS for 27 selections; and Effect: The Authority was unable to demonstrate: • the utility allowance schedules were accurate; • the units met HQS; and were accurate Cause: The Authority's internal controls in place did not prevent the Authority from missing required utility allowance and HQS compliance requirements. Questioned Costs: None. Auditor's Recommendation: The Authority should review and enhance its internal controls to ensure: • the utility allowance schedules are reviewed and updated as necessary at least annually; • units are inspected annually under HQS

Corrective Action Plan

Recommendation: The Authority should review and enhance its internal controls to ensure: • the utility allowance schedules are reviewed and updated as necessary at least annually; and • units are inspected annually under HQS. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority specialist responsible for file maintenance and recertifications during fiscal year 2022 is no longer with the Agency. In addition, the Authority misinterpreted the COVID waiver related to HOS inspections. The Authority has experienced staff now in place to perform these services. The Authority will revisit our policy and procedures over recertification, HQS, and file maintenance to ensure documentation is maintained and is in compliance with HUD regulations. Name(s) of the contact person(s) responsible for corrective action: Don Bibb, Executive Director Planned completion date for corrective action plan: December 31, 2023

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 380637 2022-001
    -
  • 380638 2022-002
    Material Weakness Repeat
  • 380640 2022-004
    Significant Deficiency Repeat
  • 380641 2022-001
    -
  • 380642 2022-004
    Significant Deficiency
  • 380643 2022-001
    -
  • 380644 2022-004
    Significant Deficiency
  • 957079 2022-001
    -
  • 957080 2022-002
    Material Weakness Repeat
  • 957081 2022-003
    Material Weakness Repeat
  • 957082 2022-004
    Significant Deficiency Repeat
  • 957083 2022-001
    -
  • 957084 2022-004
    Significant Deficiency
  • 957085 2022-001
    -
  • 957086 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.80M
14.872 Public Housing Capital Fund $547,255
14.850 Public and Indian Housing $320,300