Finding 558095 (2024-004)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-04-29

AI Summary

  • Core Issue: The Authority failed to keep a complete record of housing quality inspections, specifically missing a passed re-inspection report.
  • Impacted Requirements: This deficiency in internal controls could lead to non-compliance with eligibility requirements for housing assistance.
  • Recommended Follow-Up: Implement stronger filing controls to ensure all inspection documents are properly maintained in tenant files.

Finding Text

U.S. Department of Housing and Urban Development – CFDA #14.871 Housing Choice Vouchers Applicable Federal Award Number and Year – HCV2024 HQS Enforcement Significant Deficiency in Internal Control over Compliance Criteria: The Authority is to maintain a copy of all HQS inspections and re-inspections of failed inspections. Condition: During our testing, we noted one file that the passed re-inspection was not in the tenant file, however, we were able to substantiate that the re-inspection was completed and passed within the allowed time through their software system. Cause: The Authority’s internal controls related to maintaining proper files were not operating as designed and the inspection report was misplaced or filed incorrectly. Effect: Weaknesses in internal control over compliance could result in the Authority failing to comply with eligibility requirements. Questioned Costs: N/A Context/Sampling: We tested 26 files from the population of 152 total failed inspections during the fiscal year. Repeat Finding from Prior Year: No. Recommendation: We recommend that the Authority establish controls to ensure that all the proper documents be filed in the tenant files. View of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2024-004: U.S. Department of Housing and Urban Development – CFDA #14.871 Housing Choice Vouchers Applicable Federal Award Number and Year- HCV2024 HQS Enforcement Name of contact Person: Jenette Jemison, Director of Housing Operations Anticipated completion date: In Progress Planned Corrective Action: • SMHO will provide additional staff training and testing of understanding through a thirdparty training platform for inspections and re-inspections procedures. Management will quarterly review each file that requires re-inspection to ensure all documents are present in the file.

Categories

Eligibility HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 558093 2024-002
    Significant Deficiency
  • 558094 2024-003
    Significant Deficiency
  • 558096 2024-005
    Significant Deficiency
  • 1134535 2024-002
    Significant Deficiency
  • 1134536 2024-003
    Significant Deficiency
  • 1134537 2024-004
    Significant Deficiency
  • 1134538 2024-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $15.83M
14.871 Section 8 Housing Choice Vouchers $11.53M
14.195 Project-Based Rental Assistance (pbra) $3.62M
21.027 Coronavirus State and Local Fiscal Recovery Funds $600,000
14.239 Home Investment Partnerships Program $500,000
14.218 Community Development Block Grants/entitlement Grants $114,750