Finding 537530 (2024-005)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-26

AI Summary

  • Core Issue: The Authority failed to conduct timely inspections of housing units, violating Housing Quality Standards (HQS).
  • Impacted Requirements: Biennial inspections and quality control re-inspections were not performed as required, leading to material noncompliance.
  • Recommended Follow-Up: Implement controls to ensure timely HQS inspections and maintain proper documentation.

Finding Text

2024 – 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: MD015VO – 2024 Award Period: July 1, 2023 – June 30, 2024 Compliance Requirement: Special Tests and Provisions – HQS Inspections Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Criteria or Specific Requirement: The Authority must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the Authority 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: The Authority did inspect units timely or maintain proper inspection documentation. Questioned Costs: Unable to determine. Context: Exceptions were noted in 11 out of 60 units tested for annual HQS: 9 instances where the Authority failed to conduct the inspection timely. 2 instances where no information was provided. Exceptions were noted in 1 out of 14 quality control re-inspections. The re-inspection was not completed within 90 days of the original inspection. Cause: The Authority did not inspect units timely. Effect: The Authority is not in compliance with HQS inspection requirements Repeat Finding: No Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are performed timely. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

2024-005 Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are performed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: HAPGC has hired a new Voucher Program Director. The new Director will strictly enforce current program policy which requires strict enforcement of HQS inspection rules. Additionally, HAPGC will review processes associated with scheduling HQS Inspections and work with the HQS Inspection contractor to ensure compliance. Finally, all HCV staff persons will be required to take the Housing Choice Voucher Certification class annually to ensure proper training and adequate understanding of the voucher program rules. Name(s) of the contact person(s) responsible for corrective action: Carolyn Floyd, Housing Choice Voucher Program, Director cefloyd@co.pg.md.us. Planned completion date for corrective action plan: December 31, 2025. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Jessica Anderson-Preston, Executive Director at 301-883-5552 or email jgandersonpreston@co.pg.md.us.

Categories

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

Other Findings in this Audit

  • 537526 2024-001
    Significant Deficiency Repeat
  • 537527 2024-002
    Significant Deficiency Repeat
  • 537528 2024-003
    Significant Deficiency Repeat
  • 537529 2024-004
    Material Weakness Repeat
  • 537531 2024-001
    Significant Deficiency Repeat
  • 537532 2024-002
    Significant Deficiency Repeat
  • 537533 2024-003
    Significant Deficiency Repeat
  • 537534 2024-004
    Material Weakness Repeat
  • 537535 2024-005
    Material Weakness
  • 1113968 2024-001
    Significant Deficiency Repeat
  • 1113969 2024-002
    Significant Deficiency Repeat
  • 1113970 2024-003
    Significant Deficiency Repeat
  • 1113971 2024-004
    Material Weakness Repeat
  • 1113972 2024-005
    Material Weakness
  • 1113973 2024-001
    Significant Deficiency Repeat
  • 1113974 2024-002
    Significant Deficiency Repeat
  • 1113975 2024-003
    Significant Deficiency Repeat
  • 1113976 2024-004
    Material Weakness Repeat
  • 1113977 2024-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $2.39M
14.871 Section 8 Housing Choice Vouchers $2.24M
14.872 Public Housing Capital Fund $381,200
14.896 Family Self-Sufficiency Program $191,687
14.218 Community Development Block Grants/entitlement Grants $91,815