FAC Explorer

Finding 42289 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-06-29
Audit: 51712
Organization: Corpus Christi Housing Authority (TX)
Auditor: Novogradac & Company LLP

AI Summary

  • Core Issue: The Authority failed to conduct timely re-inspections for units that did not meet Housing Quality Standards (HQS), leading to non-compliance with federal requirements.
  • Impacted Requirements: Annual inspections and timely corrections of deficiencies as mandated by 24 CFR sections 982.158(d) and 982.405(b) were not consistently followed.
  • Recommended Follow-Up: Implement a corrective action plan to ensure compliance with HQS inspections and address identified deficiencies effectively.

Finding Text

Finding 2022-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Programs Federal Catalog Numbers: 14.871 Noncompliance ? N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority?s files and on discussion with management, there were failed inspections that did not pass reinspection within 30 days without penalty. Context: There were approximately 411 failed inspections during the audit period. Of a sample size of twenty-five (25) failed inspections, one (1) unit did not pass reinspection within 30 days. HAP was not abated nor was the tenant transferred. Our sample size is statistically valid. Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed HQS inspections in compliance with program requirements following the expiration of HUD waivers. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement a corrective action plan that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority accepts the recommendation of the auditor and will make the necessary changes to its inspection process to ensure enforcement of Housing Quality Standards (or any subsequent replacement).

Corrective Action Plan

Views of responsible officials and planned corrective action: The Authority accepts the finding of eviewed its process for properly managing the Housing Quality Standards policies. This finding reflects a missed process step by the caseworker, and the Authority will put process steps in place for weekly reviews of all abated units housed in our database by the department supervisor to ensure that housing units are placed in the eligible pool of habitable housing. The corrective process steps will require the department supervisor to extract all abated units weekly and cross reference that report with the updated HQS caseworker has processed the change within 24 hours of the unit passing. Anton Shaw, Vice President of the Housing Choice Voucher Program, is responsible for implementing this corrective action by September 30, 2023 and has since enhanced internal controls immediately, as noted above, to mitigate future exceptions.

Categories

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

Other Findings in this Audit

  • 618731 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $28.27M
14.182 Section 8 New Construction and Substantial Rehabilitation $916,101
14.879 Mainstream Vouchers $203,835