Finding 503749 (2024-001)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2024-10-25
Audit: 325989
Organization: Sarasota Housing Authority (FL)

AI Summary

  • Core Issue: The Authority failed to conduct timely biennial inspections for one out of thirty units, violating Housing Quality Standards (HQS).
  • Impacted Requirements: Non-compliance with 24 CFR sections 982.158(d) and 982.405(b) regarding unit inspections and timely corrections of deficiencies.
  • Recommended Follow-Up: Implement stronger internal control procedures to ensure compliance with HQS inspections and related regulations.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Assistance Listing Number: 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 biennially 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 discussions with management, the Authority did not perform biennial inspections in a timely manner. Context: The Authority did not perform a biennial inspection in a timely manner for one (1) out of thirty (30) tenants' units selected for testing. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). Our sample size is statistically valid. Known Questioned Costs: $2,632 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 considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance with Notice PIH 2021-14(HA). 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 internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.

Corrective Action Plan

Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Section 8 Housing Choice Vouchers program and has implemented internal control procedures that will ensure compliance of federal regulations. Prepared by: Ana Mejia – HCV Director Description Problem #1: The HCV department has had an Audit’s finding in the inspections department due to inspections not completed within the required timeframe. Description Problem #2: The HCV department has had an Audit finding in the inspection department due to not placing units on abatement after failing two inspections. Cause Analysis: When the inspector completes an inspection, the Case Managers receive a notification from PHAWEB. These notifications were missed due to the case managers receiving several notifications for different reasons, and the notifications did not specify to a second failed inspection. Therefore, these were easy to miss. 1. The inspector was not required to copy Director alerting of upcoming abatement; therefore, providing a copy of the 2nd failed letter to anyone as a form of check and balances. 2. The Inspector was given the task of scheduling his own inspections and sending notifications to both participants and owners without proper training. This task is very time-consuming and requires ample time to be able to process and schedule inspections, this caused the inspector to miss and not schedule some of the units. Corrective Action Steps: • Print the following reports monthly: ▪ PHA-WEB: Annual/Biennial/ Triennial Inspection Status Report. ▪ REAC: SEMAP Indicators report for Indicator 12 (Annual Inspections). ▪ PIC Reports. • The HCV inspector will no longer schedule and send inspection letters. That has been assigned to another HCV employee. • Review these reports and investigate any late inspections to determine the reason inspection (s) has not been completed, (example: participant is moving, participant has moved, participant has ported out of jurisdiction, or participant is terminated from the program). • Schedule inspections that are due if not scheduled already. • The Inspector will provide the HCV Director and the assigned Case Manager with a copy of the 2nd Failed letter. • The Case Manager will place payment on hold. • The HCV Director will inform the Landlord Liaison to contact owners to discuss the upcoming abatement. • The HCV Director placed a reminder under tasks for end of month to follow up and verify hold is placed and/or inspection has not passed. Person responsible: HCV Director and any staff assigned by the HCV Director. William Russell, Chief Executive Officer, will be responsible to implement this corrective action by March 31, 2025.

Categories

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

Other Findings in this Audit

  • 1080191 2024-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $26.78M
14.879 Mainstream Vouchers $1.65M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.50M
14.850 Public and Indian Housing $1.22M
14.182 Section 8 New Construction and Substantial Rehabilitation $982,112
14.872 Public Housing Capital Fund $529,297
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $97,551
14.870 Resident Opportunity and Supportive Services - Service Coordinators $65,951
14.896 Family Self-Sufficiency Program $65,165