Finding 505324 (2024-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-11-12
Audit: 327969
Auditor: Smco

AI Summary

  • Core Issue: The PHA failed to conduct required bi-annual Housing Quality Standards inspections for 6 out of 40 selected tenants.
  • Impacted Requirements: Non-compliance with federal regulations regarding unit inspections and quality control measures.
  • Recommended Follow-up: Establish a robust system to ensure compliance and improve documentation practices related to federal grants.

Finding Text

2024-002 Housing Quality Standards Inspection/HQS Enforcement Significant Deficiency Special Test & Provisions (N) Criteria: "The PHA must inspect the unit leased to a family at least bi-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 (24CRF §§982.405, 983.103). " Condition: The above requirements were not met for the 2023 audit. Context: During our audit we selected 40 tenants to make sure that an HQS inspection was completed at least bi-annually, we noted 6 out of the 40 tenants did not have support for an HQS inspection. Cause: Controls over compliance associated with the Authority’s grants of federal funds are inadequate. Effect: The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. Recommendations: We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views: See Management's Corrective Action plan.

Corrective Action Plan

When the current director, Robert Weismore was appointed his first obligation was to inspect 51 units that had been neglected by former staff. As documentation in the files all previous inspections have been completed. The current staff, Sarah Schaefer, has become a certified inspector after completing the necessary course and passing the exam. All inspections whether annual or bi-annually are all completed within the time frame directed by HUD. The director currently will complete the supervisory inspections based on the percentage of program participation directed by HUD regulations.

Categories

HUD Housing Programs Significant Deficiency Special Tests & Provisions

Other Findings in this Audit

  • 1081766 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.61M