Finding 565954 (2023-006)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2025-06-24

AI Summary

  • Core Issue: The PHA failed to follow up on inspections, allowing HAP payments to continue despite unresolved health and safety deficiencies.
  • Impacted Requirements: Compliance with HUD regulations requiring timely correction of HQS deficiencies and abatement of HAP payments.
  • Recommended Follow-Up: The Authority should enhance tracking procedures for failed inspections to ensure timely follow-up and resolution.

Finding Text

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency. Criteria For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract (24 CFR sections 982.158(d) and 982.404). Condition We tested compliance with the Authority’s HQS Enforcement on 12 failed inspections and noted one failed inspection was not followed-up on and HAP was not abated. During our testing of 40 tenant files, we also noted two instances of failed inspections that were not followed-up on and HAP was not abated. Questioned Costs None. Context We reviewed a sample of 12 of the Authority’s 120 failed inspections during 2023 for HQS Enforcement requirements. Effect HAP payments could be paid to a tenant where they should not be due to insufficient clearing of HQS inspection deficiencies. Cause Lack of oversight and control procedures. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority review their procedures for tracking failed inspections to ensure that all failed inspections are being followed-up and cleared within the required timeframe. Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.

Corrective Action Plan

Contact Person Derek Johnson, Executive Director Corrective Action Plan The Authority will review its policies and procedures over program compliance requirements and continue to provide occupancy training to staff to prevent future exceptions. Planned Completion Date for CAP December 31, 2024.

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 565951 2023-003
    Significant Deficiency Repeat
  • 565952 2023-004
    Significant Deficiency Repeat
  • 565953 2023-005
    Significant Deficiency
  • 1142393 2023-003
    Significant Deficiency Repeat
  • 1142394 2023-004
    Significant Deficiency Repeat
  • 1142395 2023-005
    Significant Deficiency
  • 1142396 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $3.12M
14.872 Public Housing Capital Fund $500,196
14.850 Public Housing Operating Fund $396,952
14.879 Mainstream Vouchers $279,119