FAC Explorer

Finding 43122 (2022-009)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-31
Audit: 48606
Organization: City of Albuquerque (NM)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The City did not meet federal housing quality standards, performing fewer inspections than required for HOME-assisted units.
  • Impacted Requirements: Inspections should cover 100% of units for projects with 1-4 HOME-assisted units, and 20% of tenant files must be reviewed.
  • Recommended Follow-Up: Implement controls to ensure compliance with inspection requirements and update the Monitoring Checklist for staff guidance by June 2023.

Finding Text

2022 ? 009 Special Tests and Provisions ? Housing Quality Standards (Significant Deficiency and Noncompliance) Federal Agency: U.S. Department of Housing Federal Program Name: HOME Investment Partnerships Program Assistance Listing Number: 14.239 Federal Award Identification Number and Year: Various Award Period: Various Type of Finding: ? Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: According to 24 CFR 92.504(d)(1)(ii)(D), inspections must be based on a statistically valid sample of units appropriate for the size of the HOME-assisted project, as set forth by HUD through notice. For projects with one-to-four HOME-assisted units, participating jurisdiction must inspect 100 percent of the HOME-assisted units and the inspectable items (site, building exterior, building systems, and common areas) for each building housing HOME-assisted units. According to Ch 8 HOME Monitoring, the Comprehensive Review requires that 20% of HOME-assisted unit tenant files be reviewed for content, as well as conduct HQS inspections on 20% of the HOME-assisted units, utilizing the HQS inspection form (Form HUD-52580). For projects with one-to-four (1 ? 4) HOME-assisted units, the City inspects 100 % of the HOME-assisted units and the inspectable items (site, building exterior, building systems, and common areas) for each building housing HOME-assisted units. Upon completion of the Comprehensive Monitoring Review, Program Specialists are responsible for preparing a monitoring report letter and monitoring report. The cover letter, monitoring report and complete monitoring packet ? includes monitoring routing form, all required monitoring forms used as well as any additional information/documents used in and received during the monitoring ? are submitted to the Program Specialists? supervisor for review and approval within 2 weeks of the completion of the monitoring visit. Upon supervisor approval, Program Specialist will forward the entire packet for review, approval and signature by the Community Development Division Manager and Fiscal Manager. Condition: During our testing, it was noted that the City did not perform the required percent of inspections. Also, the City lacked evidence of approval of the monitoring. Questioned costs: None Context: During our testing, we noted the following exceptions over housing quality standards requirements: ? For 1 of 5 projects, the City performed 17% of the required inspections rather than 20%. The one unit not inspected due to COVID-19 was not scheduled for reinspection. HUD did have a waiver in place for HQS Inspections from April 2020 until December 31, 2021. The inspection, however, was scheduled for March 24, 2022 which is subsequent to the extended waiver. ? For 1 of 5 projects, the City performed 33% of the required inspections rather than 100%. The City inspected one unit versus all three units. ? For 2 of 5 projects, the cover letter signed by the Community Development Division Manager and Fiscal Manager was not provided to us. 2022 ? 009 Special Tests and Provisions ? Housing Quality Standards (Significant Deficiency and Noncompliance) (Continued) Cause: The City failed to follow federal housing quality standards regulation nor its HOME policies and procedures. Effect: The auditor noted instances of noncompliance. Noncompliance results in failure to identify those units on which housing quality inspections are due and perform inspections of units and that any needed repairs are completed timely. Recommendation: We recommend the City design controls to ensure compliance with federal housing quality standards regulation and its HOME policies and procedures. Management Response: The City concurs with the finding. The City did complete 20% of the program files however one unit was not inspected due to the client testing positive for COVID -19. In the future if a home in not able to be inspected, another tenant will be notified and a HQS inspection will occur at another residence at a later date. This action will be corrected by updating the Monitoring Checklist to ensure that staff knows the proper of units to be inspected. This will be reviewed with supervisor prior to monitoring. The City was not aware of the requirement that, in the case of HOME projects with between one and four units, all units needed to be inspected; the City typically looks at the project as a whole and inspects 10% or 20% depending on the Risk Assessment. This will be corrected in the future by updating the Monitoring Checklist to ensure staff knows the proper number of HOME units that need to be inspected. Timeline and Responsible Position: June 2023 ? Director of Family & Community Services

Corrective Action Plan

2022 ? 009 Special Tests and Provisions ? Housing Quality Standards (Significant Deficiency and Noncompliance) Management Response: The City concurs with the finding. The City did complete 20% of the program files however one unit was not inspected due to the client testing positive for COVID -19. In the future if a home in not able to be inspected, another tenant will be notified and a HQS inspection will occur at another residence at a later date. This action will be corrected by updating the Monitoring Checklist to ensure that staff knows the proper of units to be inspected. This will be reviewed with supervisor prior to monitoring. The City was not aware of the requirement that, in the case of HOME projects with between one and four units, all units needed to be inspected; the City typically looks at the project as a whole and inspects 10% or 20% depending on the Risk Assessment. This will be corrected in the future by updating the Monitoring Checklist to ensure staff knows the proper number of HOME units that need to be inspected. Timeline and Responsible Position: June 2023 ? Director of Family & Community Services

Categories

Subrecipient Monitoring Special Tests & Provisions HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 43123 2022-009
    Significant Deficiency
  • 43124 2022-005
    Significant Deficiency
  • 43125 2022-009
    Significant Deficiency
  • 43126 2022-009
    Significant Deficiency
  • 43127 2022-009
    Significant Deficiency
  • 43128 2022-005
    Significant Deficiency
  • 43129 2022-009
    Significant Deficiency
  • 43130 2022-009
    Significant Deficiency
  • 43131 2022-009
    Significant Deficiency
  • 43132 2022-009
    Significant Deficiency
  • 43133 2022-009
    Significant Deficiency
  • 43134 2022-009
    Significant Deficiency
  • 43135 2022-009
    Significant Deficiency
  • 43136 2022-005
    Significant Deficiency
  • 48311 2022-004
    Significant Deficiency Repeat
  • 48312 2022-006
    Significant Deficiency Repeat
  • 48313 2022-006
    Significant Deficiency Repeat
  • 48314 2022-006
    Significant Deficiency Repeat
  • 48315 2022-006
    Significant Deficiency Repeat
  • 48316 2022-008
    Significant Deficiency
  • 48317 2022-004
    Significant Deficiency Repeat
  • 48318 2022-005
    Significant Deficiency
  • 48319 2022-006
    Significant Deficiency Repeat
  • 48320 2022-007
    Significant Deficiency Repeat
  • 48321 2022-008
    Significant Deficiency
  • 619564 2022-009
    Significant Deficiency
  • 619565 2022-009
    Significant Deficiency
  • 619566 2022-005
    Significant Deficiency
  • 619567 2022-009
    Significant Deficiency
  • 619568 2022-009
    Significant Deficiency
  • 619569 2022-009
    Significant Deficiency
  • 619570 2022-005
    Significant Deficiency
  • 619571 2022-009
    Significant Deficiency
  • 619572 2022-009
    Significant Deficiency
  • 619573 2022-009
    Significant Deficiency
  • 619574 2022-009
    Significant Deficiency
  • 619575 2022-009
    Significant Deficiency
  • 619576 2022-009
    Significant Deficiency
  • 619577 2022-009
    Significant Deficiency
  • 619578 2022-005
    Significant Deficiency
  • 624753 2022-004
    Significant Deficiency Repeat
  • 624754 2022-006
    Significant Deficiency Repeat
  • 624755 2022-006
    Significant Deficiency Repeat
  • 624756 2022-006
    Significant Deficiency Repeat
  • 624757 2022-006
    Significant Deficiency Repeat
  • 624758 2022-008
    Significant Deficiency
  • 624759 2022-004
    Significant Deficiency Repeat
  • 624760 2022-005
    Significant Deficiency
  • 624761 2022-006
    Significant Deficiency Repeat
  • 624762 2022-007
    Significant Deficiency Repeat
  • 624763 2022-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $54.19M
21.023 Emergency Rental Assistance Program $19.60M
20.205 Highway Planning and Construction $4.46M
20.507 Federal Transit_formula Grants $2.99M
21.019 Coronavirus Relief Fund $2.39M
14.239 Home Investment Partnerships Program $2.34M
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $2.17M
11.307 Economic Adjustment Assistance $1.20M
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $1.10M
93.575 Child Care and Development Block Grant $1.02M
93.137 Community Programs to Improve Minority Health Grant Program $1.01M
97.U01 Tsa Law Enforcement Officer Reimbursement Program $682,666
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $673,670
20.106 Airport Improvement Program $637,381
10.559 Summer Food Service Program for Children $537,363
16.034 Coronavirus Emergency Supplemental Funding Program $509,513
97.067 Homeland Security Grant Program $437,844
97.083 Staffing for Adequate Fire and Emergency Response (safer) $419,435
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $396,423
93.997 Assisted Outpatient Treatment $305,689
93.052 National Family Caregiver Support, Title Iii, Part E $270,329
66.001 Air Pollution Control Program Support $250,473
97.072 National Explosives Detection Canine Team Program $211,723
93.053 Nutrition Services Incentive Program $181,544
97.U02 Tsa Law Enforcement Officer Reimbursement Program $153,300
16.738 Edward Byrne Memorial Justice Assistance Grant Program $130,768
94.011 Foster Grandparent Program $123,280
97.024 Emergency Food and Shelter National Board Program $110,839
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $101,680
11.805 Mbda Business Center $99,476
97.042 Emergency Management Performance Grants $97,120
16.833 National Sexual Assault Kit Initiative $86,265
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $77,339
16.741 Dna Backlog Reduction Program $70,122
16.838 Comprehensive Opioid Abuse Site-Based Program $64,373
97.039 Hazard Mitigation Grant $60,673
94.016 Senior Companion Program $57,073
16.575 Crime Victim Assistance $56,207
20.215 Highway Training and Education $56,203
10.558 Child and Adult Care Food Program $55,648
93.600 Head Start $52,964
95.001 High Intensity Drug Trafficking Areas Program $52,821
94.002 Retired and Senior Volunteer Program $51,949
14.231 Emergency Solutions Grant Program $44,459
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $44,105
16.001 Law Enforcement Assistance_narcotics and Dangerous Drugs_laboratory Analysis $42,422
20.500 Federal Transit_capital Investment Grants $42,070
20.600 State and Community Highway Safety $38,965
14.267 Continuum of Care Program $30,132
16.734 Special Data Collections and Statistical Studies $26,018
16.710 Public Safety Partnership and Community Policing Grants $17,942
94.013 Volunteers in Service to America $15,000
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $10,015
81.106 Transport of Transuranic Wastes to the Waste Isolation Pilot Plant: States and Tribal Concerns, Proposed Solutions $7,000
93.074 Hospital Preparedness Program (hpp) and Public Health Emergency Preparedness (phep) Aligned Cooperative Agreements $6,706
66.717 Source Reduction Assistance $4,311
15.904 Historic Preservation Fund Grants-in-Aid $3,022
93.213 Research and Training in Complementary and Integrative Health $3,011
14.218 Community Development Block Grants/entitlement Grants $2,483
16.301 Law Enforcement Assistance_fbi Crime Laboratory Support $486
16.588 Violence Against Women Formula Grants $185