Finding 392153 (2023-007)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-04-02
Audit: 302364
Organization: City of Baldwin Park (CA)

AI Summary

  • Core Issue: The City failed to conduct timely Housing Quality Standards (HQS) inspections, violating federal requirements.
  • Impacted Requirements: Non-compliance with 24 CFR 982.405(b) regarding the frequency of HQS inspections.
  • Recommended Follow-Up: Implement procedures to ensure timely HQS inspections are conducted moving forward.

Finding Text

2023-007 - Special Tests – Internal Control and Compliance over Housing Quality Standards Inspections (Material Weakness) Information on the Federal Program: Assistance Listing Number: 14.871 Federal Program Name: Housing Voucher Cluster Federal Agency: Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Number and Award Year: CA120 – FY22-23 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): 24 CFR 982.405(b) states that the Public PHA (PHA) must inspect the unit leased to a family prior to the initial term of the lease, at least biennially during assisted occupancy, and at other times as needed, to determine if the unit meets Housing Quality Standards (HQS). Condition: We found five (5) instances out of 9 in which the City did not conduct the HQS failed inspection follow up in a timely manner. We also noted three (3) instances out of 40 samples for eligibility testing has HQS inspections that are over a year apart, which shows that the City did not conduct the HQS biennial inspection in a timely manner. Cause: The City currently has no policies or procedures in place to ensure that Housing Quality Standard Inspections are performed timely. Effect or Potential Effect: The City has not complied with the requirements of 24 CFR 982.405(b) – Housing Quality Standards Inspections. Questioned Costs: None. Context: See condition above for the context of the finding. Repeat Finding from Prior Year(s): Yes. See prior year finding 2022-006. Recommendation: We recommend that the City implement procedures to ensure that Housing Quality Standard Inspections are performed timely. Views of Responsible Officials: Management concurs the finding.

Corrective Action Plan

2023-007 - Special Tests – Internal Control and Compliance over Housing Quality Standards Inspections (Material Weakness) Condition: We found five (5) instances out of 9 in which the City did not conduct the HQS failed inspection follow up in a timely manner. We also noted three (3) instances out of 40 samples for eligibility testing has HQS inspections that are over a year apart, which shows that the City did not conduct the HQS biennial inspection in a timely manner. Management concurs. Corrective Actions: Management has directed staff to abide by the PHA policy and HUD regulations for the HQS inspection process. Management will continue to enforce HUD regulations and the use of the PHA’s administrative plan to ensure staff will conduct the HQS biennial inspection in a timely manner. Name of Responsible Person: Ron Garcia, Director of Community Development Imelda Delgado, Housing Manager Projected Implementation Date: Immediately implemented.

Categories

Subrecipient Monitoring Eligibility HUD Housing Programs Material Weakness Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 392140 2023-002
    Significant Deficiency Repeat
  • 392141 2023-002
    Significant Deficiency Repeat
  • 392142 2023-002
    Significant Deficiency Repeat
  • 392143 2023-002
    Significant Deficiency Repeat
  • 392144 2023-003
    Significant Deficiency
  • 392145 2023-004
    Significant Deficiency Repeat
  • 392146 2023-004
    Significant Deficiency Repeat
  • 392147 2023-004
    Significant Deficiency Repeat
  • 392148 2023-005
    Material Weakness Repeat
  • 392149 2023-005
    Material Weakness Repeat
  • 392150 2023-005
    Material Weakness Repeat
  • 392151 2023-005
    Material Weakness Repeat
  • 392152 2023-006
    Significant Deficiency
  • 392154 2023-007
    Material Weakness Repeat
  • 968582 2023-002
    Significant Deficiency Repeat
  • 968583 2023-002
    Significant Deficiency Repeat
  • 968584 2023-002
    Significant Deficiency Repeat
  • 968585 2023-002
    Significant Deficiency Repeat
  • 968586 2023-003
    Significant Deficiency
  • 968587 2023-004
    Significant Deficiency Repeat
  • 968588 2023-004
    Significant Deficiency Repeat
  • 968589 2023-004
    Significant Deficiency Repeat
  • 968590 2023-005
    Material Weakness Repeat
  • 968591 2023-005
    Material Weakness Repeat
  • 968592 2023-005
    Material Weakness Repeat
  • 968593 2023-005
    Material Weakness Repeat
  • 968594 2023-006
    Significant Deficiency
  • 968595 2023-007
    Material Weakness Repeat
  • 968596 2023-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.85M
14.218 Community Development Block Grant $299,939
14.871 Section 8 Housing Choice Vouchers $119,269
97.067 Homeland Security Grant Program $67,518
14.239 Home Investment Partnerships Program $46,380
16.922 Equitable Sharing Program $42,337
14.872 Public Housing Capital Fund $30,825
14.850 Public and Indian Housing $29,014
16.738 Edward Byrne Memorial Justice Assistance Grant Program $18,862
20.600 State and Community Highway Safety $6,948
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $6,424