Finding 501165 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-10-01

AI Summary

  • Core Issue: The housing authority failed to conduct an annual inspection of a unit within the required 24-month period, violating federal regulations.
  • Impacted Requirements: Compliance with Housing Quality Standards (HQS) inspections and quality control re-inspections as mandated by HUD.
  • Recommended Follow-Up: Designate a responsible individual to ensure timely completion of HQS inspections moving forward.

Finding Text

2024 – 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The 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. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition: During the testing of the HCV program tenant files for the Annual HQS, we noted one instance where the HQS inspection was not done within the 24-month regulatory period. Questioned costs: None Context: Out of the 40 files tested, one contained an error as noted above. The samples were statistically valid samples. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority is not in compliance with federal regulations regarding the annual HQS. Repeat Finding: No Recommendation: We recommend that the housing authority designate an individual to assure HQS inspections are completed timely. Views of responsible officials: The agency feels the item in question for the inspection date is outside the scope of the audit dates which are July 1, 2023, to June 30, 2024. Additionally, when the agency discovered the error in March 2023 during a time of restructuring a very high turnover department, we took immediate action in correcting the inspection to be compliant.

Corrective Action Plan

2024-002 Housing Voucher Cluster – Assistance Listing No. No. 14.871 and 14.879 Recommendation: We recommend the housing authority designate an individual to assure HQS inspections are completed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Although the agency understands the basis of the finding, the Agency feels the item in question for the inspection date is outside the scope of the audit dates which are July 1, 2023, to June 30, 2024. Additionally, when the agency discovered the error in March 2023 during a time of restructuring a very high turnover department, the newly appointed management and leadership took immediate action in correcting the inspection to be compliant. In addition to our current HCV internal processes, the agency has added an inspection section to review a 10% sample of all inspections monthly to ensure compliance. Name(s) of the contact person(s) responsible for corrective action: Morgan Gower Planned completion date for corrective action plan: In progress as of September 2024 and is ongoing.

Categories

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 501163 2024-001
    Significant Deficiency
  • 501164 2024-001
    Significant Deficiency
  • 501166 2024-002
    Significant Deficiency
  • 1077605 2024-001
    Significant Deficiency
  • 1077606 2024-001
    Significant Deficiency
  • 1077607 2024-002
    Significant Deficiency
  • 1077608 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $5.59M
14.879 Mainstream Vouchers $278,048
14.896 Family Self-Sufficiency Program $79,200
10.427 Rural Rental Assistance Payments $44,636