FAC Explorer

Finding 563603 (2024-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-06-03
Audit: 357879
Organization: Olmsted County Housing and Redevelopment Authority (MN)
Auditor: Hawkins Ash CPAS

AI Summary

  • Core Issue: Housing Quality Standards (HQS) inspections were not done on time, and enforcement actions for failed re-inspections were not followed as required by HUD.
  • Impacted Requirements: The Authority lacks necessary internal controls to ensure compliance with HUD's HQS inspection and enforcement standards.
  • Recommended Follow-Up: Implement stronger controls to ensure timely HQS inspections and enforce actions on failed re-inspections, while monitoring improvements through monthly reports.

Finding Text

Program: Housing Vouchers Cluster Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance with HUD requirements. Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections. Cause: The Authority does not have the appropriate internal controls in place to ensure that HQS inspection and enforcement requirements are being implemented and followed. Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements. Questioned Cost: Not applicable. Information: Sampling was statistically valid and a systemic problem. Prior Year Finding: 2023-001 Recommendation: It is recommended that the Authority implements and applies the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections. Management’s Response: Monthly reports for failed inspections were set up in May of 2024 in response to the previous year’s finding. While these reports were helpful, they did not fully resolve the issue. Two additional changes have since been implemented: 1) Staffing changes including the removal of one Specialist that had a high frequency of missed follow-ups and the addition of a “Lead” Housing Specialist; 2) The Lead Housing Specialist is now receiving all-staff monthly reports on failed HQS inspections to ensure that follow-up is not only completed by completed timely. We expect a drastic improvement in this category.

Corrective Action Plan

Audit Finding Number: 2024-001 Housing Quality Standards Inspections & Enforcement Agency: Department of Housing and Urban Development Responsible Person, Title: Dave Dunn, Housing Director Completion date: 5/15/2025 Agency Response: Concur Corrective Action Plan: Monthly reports for failed inspections were set up in May of 2024 in response to the previous year’s finding. While these reports were helpful, they did not fully resolve the issue. Two additional changes have since been implemented: 1) Staffing changes including the removal of one Specialist that had a high frequency of missed follow-ups and the addition of a “Lead” Housing Specialist; 2) The Lead Housing Specialist is now receiving all-staff monthly reports on failed HQS inspections to ensure that follow-up is not only completed by completed timely. We expect a drastic improvement in this category.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 563602 2024-003
    Significant Deficiency
  • 563604 2024-002
    Material Weakness
  • 563605 2024-001
    Material Weakness Repeat
  • 563606 2024-002
    Material Weakness
  • 563607 2024-001
    Material Weakness Repeat
  • 563608 2024-002
    Material Weakness
  • 1140044 2024-003
    Significant Deficiency
  • 1140045 2024-001
    Material Weakness Repeat
  • 1140046 2024-002
    Material Weakness
  • 1140047 2024-001
    Material Weakness Repeat
  • 1140048 2024-002
    Material Weakness
  • 1140049 2024-001
    Material Weakness Repeat
  • 1140050 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.08M
14.872 Public Housing Capital Fund $971,926
14.879 Mainstream Vouchers $852,076
14.181 Supportive Housing for Persons with Disabilities $647,200
14.267 Continuum of Care Program $535,611
14.850 Public Housing Operating Fund $363,989
14.149 Rent Supplements Rental Housing for Lower Income Families $49,833
10.427 Rural Rental Assistance Payments $28,970
10.415 Rural Rental Housing Loans $17,607