Finding 478309 (2021-005)

-
Requirement
N
Questioned Costs
-
Year
2021
Accepted
2024-07-11
Audit: 314981
Organization: City of Compton (CA)

AI Summary

  • Core Issue: The City failed to conduct the required annual inspection for one housing unit due to a HUD system error.
  • Impacted Requirements: Compliance with Housing Quality Standards (HQS) inspections and quality control re-inspections.
  • Recommended Follow-Up: The City should enhance procedures to ensure all annual inspections are completed and documented by the planned implementation date of December 31, 2024.

Finding Text

2021-005- Housing Quality Standards Inspection {NC) Federal Program Title: Federal Catalog Number: Federal Agency: Pass-Through Entity: Federal Award Number and Year: Category of Finding: Section 8 Housing Choice Vouchers 14.871 U.S. Department of Housing and Urban Development Not applicable CA-071 - 2021 Special Tests and Provisions Criteria: The public housing agency (PHA) must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. Condition: In one instance, the City did not perform the required annual inspection. Cause: We were informed that the HUD system did not release the address for inspection so no inspection was performed. Effect or Potential Effect: The City's failure to comply with stated requirements exposes the City to sanctions from the federal agency, including loss of funding. Questioned Cost: None Context: The exception was noted in one out of 60 participants tested. The City has noted that they will investigate the issue. Statistical Sampling Validity: Samples are haphazardly selected. Repeat of a Prior-Year Finding: No Recommendation: We recommend the City to improve procedures to ensure that all annual inspections are performed. Management Response and Corrective Action Plan City's Response: The City concurs with the recommendation. Corrective Action Plan: Policies will be enforced or monitored more closely by Housing Authority management to ensure all inspections and re-inspections are complete and documented. Planned Implementation Date: December 31, 2024 Responsible Person(s): Community Development Director

Corrective Action Plan

Management Response and Corrective Action Plan City's Response: The City concurs with the recommendation. Corrective Action Plan: Policies will be enforced or monitored more closely by Housing Authority management to ensure all inspections and re-inspections are complete and documented. Planned Implementation Date: December 31, 2024 Responsible Person(s): Community Development Director

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 478306 2021-002
    Material Weakness Repeat
  • 478307 2021-003
    Significant Deficiency
  • 478308 2021-004
    -
  • 478310 2021-007
    Significant Deficiency Repeat
  • 478311 2021-008
    Significant Deficiency
  • 478312 2021-006
    Significant Deficiency
  • 1054748 2021-002
    Material Weakness Repeat
  • 1054749 2021-003
    Significant Deficiency
  • 1054750 2021-004
    -
  • 1054751 2021-005
    -
  • 1054752 2021-007
    Significant Deficiency Repeat
  • 1054753 2021-008
    Significant Deficiency
  • 1054754 2021-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $8.70M
14.218 Community Development Block Grants/entitlement Grants $1.38M
21.019 Coronavirus Relief Fund (crf) $1.21M
14.248 Section 108 Loans Receivable - Balance at Beginning of Year $522,691
14.248 Section 108 Note Payable - Current Expenditures $506,125
14.871 Cares Act - Supplemental Housing Assistance Payment (hap) $300,953
16.034 Coronavirus Emergency Supplemental Funding Program $149,719
14.239 Home Investment Partnership Program $148,848
14.871 Cares Act -Supplemental Administative Fee Funding $67,493
14.218 Community Development Block Grants/disaster Recovery Grants (drgr) $4,420
14.218 Covid-19-Cdbg - Cv, Cares Act $4,068