FAC Explorer

Finding 393781 (2021-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2021
Accepted
2024-04-19
Audit: 303983
Organization: Housing Authority of the City of Pueblo (CO)
Auditor: Eide Bailly

AI Summary

  • Core Issue: The PHA failed to resolve 13 life-threatening HQS deficiencies within the required 24-hour timeframe.
  • Impacted Requirements: Compliance with HQS enforcement standards is critical to avoid unauthorized payments and ensure tenant safety.
  • Recommended Follow-Up: Implement stronger oversight and processes to ensure timely resolution of HQS deficiencies and prevent recurrence of this issue.

Finding Text

U.S. Department of Housing and Urban Development ‐ CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year – Section 8 Housing Choice Vouchers ‐ 2021 Special Tests and Provisions – HQS Enforcement Material Weakness in Internal Control over Compliance and Material Instance of Non‐Compliance Criteria – For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA‐approved extension. Condition – During our testing of failed HQS inspections, we identified 13 instances where a lifethreatening issue was not resolved within 24 hours. Questioned Costs – None Reported. Context/Sampling – A non‐statistical sample of 60 failed inspections were selected for testing. 13 out of the 60 failed inspections did not have documentation of a life‐threatening issue being resolved within 24 hours. Effect – Failure to implement and maintain a proper control process could result in failure to complete the required inspections in the required time period, resulting in unauthorized payments. Cause – The Authority has experienced significant staff turnover and due to a lack of oversight the appropriate steps were not documented to ensure compliance with the program requirements. Repeat Finding from Prior Year – Yes. Recommendation – The Authority should ensure that processes are implemented to ensure compliance with program requirements for failed HQS inspections. Views of Responsible Officials – Management agrees with the finding.

Corrective Action Plan

U.S. Department of Housing and Urban Development – CFDA #14.871 Section 8 Housing Choice Vouchers Special Test and Provisions – HQS Enforcement Material Weakness in Internal Control over Compliance and Material Instance of Non-Compliance Finding Summary: There was no documentation of a life-threatening issue being resolved within 24 hours. There were 60 failed inspection reports tested and 13 instances where a life-threatening issue was identified and HACP did not have documentation that the issue was resolved within 24 hours as required. Responsible Individual: Steven Trujillo, Executive Director Corrective Action Plan: We have procedures in place that require follow up inspections and believe these issues were corrected, but the documentation was not obtained. The Housing Authority has implemented a process that requires proper documentation to be completed, after a failed inspection, to show that proper action was taken to correct the issue within the prescribed timeframe. Anticipate Completion Date: January 2023

Categories

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

Other Findings in this Audit

  • 393782 2021-003
    Material Weakness Repeat
  • 393783 2021-011
    Significant Deficiency
  • 393784 2021-012
    Significant Deficiency
  • 393785 2021-011
    Significant Deficiency
  • 393786 2021-012
    Significant Deficiency
  • 393787 2021-004
    Material Weakness Repeat
  • 393788 2021-005
    Material Weakness Repeat
  • 393789 2021-006
    Significant Deficiency Repeat
  • 393790 2021-004
    Material Weakness Repeat
  • 393791 2021-005
    Material Weakness Repeat
  • 393792 2021-006
    Significant Deficiency Repeat
  • 393793 2021-007
    Material Weakness Repeat
  • 393794 2021-008
    Significant Deficiency Repeat
  • 393795 2021-009
    Significant Deficiency Repeat
  • 393796 2021-010
    Significant Deficiency
  • 970223 2021-003
    Material Weakness Repeat
  • 970224 2021-003
    Material Weakness Repeat
  • 970225 2021-011
    Significant Deficiency
  • 970226 2021-012
    Significant Deficiency
  • 970227 2021-011
    Significant Deficiency
  • 970228 2021-012
    Significant Deficiency
  • 970229 2021-004
    Material Weakness Repeat
  • 970230 2021-005
    Material Weakness Repeat
  • 970231 2021-006
    Significant Deficiency Repeat
  • 970232 2021-004
    Material Weakness Repeat
  • 970233 2021-005
    Material Weakness Repeat
  • 970234 2021-006
    Significant Deficiency Repeat
  • 970235 2021-007
    Material Weakness Repeat
  • 970236 2021-008
    Significant Deficiency Repeat
  • 970237 2021-009
    Significant Deficiency Repeat
  • 970238 2021-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $1.24M
14.182 Section 8 New Construction and Substantial Rehabilitation $553,367
14.871 Section 8 Housing Choice Vouchers $312,375
14.850 Public and Indian Housing $279,167
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $178,865
10.405 Farm Labor Housing Loans and Grants $127,040
10.427 Rural Rental Assistance Payments $60,863
14.896 Family Self-Sufficiency Program $36,603