Finding 518396 (2024-003)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-01-09

AI Summary

  • Core Issue: The City failed to conduct required housing quality inspections for 15% of sampled units, risking tenant health and safety.
  • Impacted Requirements: Non-compliance with 24 CFR sections 982.158(d) and 982.405(b) regarding biennial inspections and documentation.
  • Recommended Follow-up: Management should establish controls to ensure timely inspections and proper documentation of housing quality standards.

Finding Text

Finding: 2024‐003 U.S. Department of Housing & Urban Development Program Name: Housing Voucher Cluster AL Number: 14.871 Material Non‐Compliance Material Weakness, Special Tests and Provisions Criteria: In accordance with 24 CFR sections 982.158(d) and 982.405(b), the Public Housing Agencies (PHA) must inspect the unit leased to a family at least biennially 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. Condition: The City did not follow procedures to ensure compliance of housing quality standards inspections. Context: Of the 1,598 applicants during the current year valued at $771,603, we examined 60 and determined that 9 (15% valued at $5,400) did not have a unit inspection report to verify that the unit was inspected. Effect: Units leased to a family could not meet the housing quality standards necessary for the health and safety of program participants. Cause: Lack of proper internal control over housing quality standards inspections. Questioned Cost: The finding represented an internal control weakness; therefore, no questioned costs are applicable. Recommendation: Management should implement controls to ensure that housing quality standards inspections are completed at lease biennially and documented on a unit inspection report. Views of Responsible Officials and Planned Corrective Actions: The City agrees with this finding. Please refer to the Corrective Action Plan section of this report.

Corrective Action Plan

Name of Contact Person: Renae Miller, Public Housing Director Corrective Action/Management’s Response: Inspector Skills and Certifications The current HCV staff inspector demonstrates the necessary skills to effectively inspect units. The inspector has successfully obtained both HQS and NSPIRE certifications. The HCV Manager has also successfully obtained the NSPIRE certification. Coordination of Inspections The Executive Director and HCV Manager ensure the inspector is informed of potential lease-ups promptly. The receptionist collaborates with the inspector to schedule inspections efficiently. The inspector and receptionist have addressed outstanding inspections and will continue to work together to ensure timely scheduling of all future inspections.   Review of HUD PIC Reports The Executive Director and HCV Manager will review and discuss the HUD PIC report monthly, or more frequently, if necessary, to maintain oversight and compliance. Training for Inspection Documentation The HCV inspector will receive training on accurately entering all inspection appointments into the Management Software system. This will enhance tracking and ensure comprehensive documentation of inspection activities. Proposed Completion Date: Immediately and ongoing.

Categories

HUD Housing Programs Special Tests & Provisions Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 518394 2024-001
    Material Weakness
  • 518395 2024-002
    Material Weakness
  • 518397 2024-004
    Material Weakness
  • 1094836 2024-001
    Material Weakness
  • 1094837 2024-002
    Material Weakness
  • 1094838 2024-003
    Material Weakness
  • 1094839 2024-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.17M
14.850 Public Housing Operating Fund $705,509
14.872 Public Housing Capital Fund $305,791
66.458 Clean Water State Revolving Fund $219,340
21.027 Coronavirus State and Local Fiscal Recovery Funds $210,200