Finding 566011 (2024-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-06-24

AI Summary

  • Core Issue: The PHA failed to conduct timely HQS inspections for housing units, violating federal regulations.
  • Impacted Requirements: The PHA must inspect units biennially and conduct quality control checks as per 24 CFR sections 982.158(d) and 982.405(b).
  • Recommended Follow-Up: Implement a tracking system for inspections, assess staffing needs, and provide training on HQS compliance.

Finding Text

Finding 2024 – 002 – Annual HQS Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Federal Award Identification Number and Year: FL080; 2024 Award Period: October 1, 2023 to September 30, 2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Noncompliance (Other Matters Criteria or Specific Requirement: The 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 (24 CFR sections 982.158(d) and 982.405(b)). Condition: During the testing of 60 housing voucher cluster tenant files, certain special provision compliance deficiencies were noted as summarized below: Annual HQS Inspections Number of Instances Finding 2 The HQS inspection was not performed in a timely manner Questioned Costs: Undeterminable Context: Out of 60 files tested for annual inspections, 2 files contained errors as noted above. Cause: The Authority does not have adequate procedures in place to ensure units are inspected timely. Effect: The Authority is not in compliance with federal regulations regarding minimum housing quality standards. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2017-002, 2018-002, 2019-002, 2020-002, 2021-002, 2022-002, and 2023-002. Recommendation: To ensure compliance with federal requirements, we recommend the Authority takes the following actions: 1. Implement a centralized tracking system to monitor inspection due dates and follow-up timelines to ensure all inspections are completed within the HUD-mandated timeframes. 2. Evaluate staffing levels and consider hiring additional inspectors or contracting third-party services to meet inspection demands. 3. Provide ongoing training on HQS protocols and compliance expectations. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

2024-002 – Annual HQS Inspection Housing Voucher Cluster – Assistance Listing 14.871 and 14.879 Recommendation: We recommend that management implement a centralized tracking system to monitor inspection due dates and follow-up timelines, ensuring all inspections are completed within HUD- mandated timeframes. Additionally, we recommend that PBCHA evaluate current staffing levels and consider hiring additional inspectors or contracting with third-party providers to meet inspection demands. Ongoing training should also be provided to staff on Housing Quality Standards (HQS) protocols and compliance expectations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The PBCHA has seen vast improvement in this area. The PBCHA will continue to monitor its third-party inspection vendor to ensure continued adherence for the provision of inspection reports. The PBCHA will utilize centralized tracking systems within Yardi and other systems to improve oversight of inspection due dates and follow-up timelines, ensuring timely completion of all inspections in accordance with HUD requirements. The PBCHA will assess current staffing levels and evaluate the feasibility of hiring internal inspectors or contracting with additional third-party inspection services to meet demand while being cognizant of current funding uncertainties. Additionally, training will be provided to staff to reinforce Housing Quality Standards (HQS) protocols and compliance expectations. Name(s) of the contact person(s) responsible for corrective action: Yvette Bembry Planned completion date for corrective action plan: August 30, 2026

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 566008 2024-001
    Material Weakness Repeat
  • 566009 2024-001
    Material Weakness Repeat
  • 566010 2024-001
    Material Weakness Repeat
  • 566012 2024-002
    Significant Deficiency Repeat
  • 566013 2024-002
    Significant Deficiency Repeat
  • 566014 2024-003
    Significant Deficiency Repeat
  • 566015 2024-003
    Significant Deficiency Repeat
  • 566016 2024-003
    Significant Deficiency Repeat
  • 566017 2024-004
    Significant Deficiency Repeat
  • 566018 2024-004
    Significant Deficiency Repeat
  • 566019 2024-004
    Significant Deficiency Repeat
  • 566020 2024-005
    Significant Deficiency Repeat
  • 566021 2024-005
    Significant Deficiency Repeat
  • 566022 2024-005
    Significant Deficiency Repeat
  • 566023 2024-006
    Significant Deficiency Repeat
  • 566024 2024-007
    Significant Deficiency
  • 1142450 2024-001
    Material Weakness Repeat
  • 1142451 2024-001
    Material Weakness Repeat
  • 1142452 2024-001
    Material Weakness Repeat
  • 1142453 2024-002
    Significant Deficiency Repeat
  • 1142454 2024-002
    Significant Deficiency Repeat
  • 1142455 2024-002
    Significant Deficiency Repeat
  • 1142456 2024-003
    Significant Deficiency Repeat
  • 1142457 2024-003
    Significant Deficiency Repeat
  • 1142458 2024-003
    Significant Deficiency Repeat
  • 1142459 2024-004
    Significant Deficiency Repeat
  • 1142460 2024-004
    Significant Deficiency Repeat
  • 1142461 2024-004
    Significant Deficiency Repeat
  • 1142462 2024-005
    Significant Deficiency Repeat
  • 1142463 2024-005
    Significant Deficiency Repeat
  • 1142464 2024-005
    Significant Deficiency Repeat
  • 1142465 2024-006
    Significant Deficiency Repeat
  • 1142466 2024-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $40.81M
14.879 Mainstream Vouchers $4.46M
14.241 Housing Opportunities for Persons with Aids $3.56M
14.850 Public Housing Operating Fund $1.75M
14.871 Emergency Housing Vouchers $1.48M
14.872 Public Housing Capital Fund $946,341
14.895 Jobs-Plus Pilot Initiative $690,328
17.274 Youthbuild $389,862
14.896 Family Self-Sufficiency Program $140,985
14.870 Resident Opportunity and Supportive Services - Service Coordinators $83,755