FAC Explorer

Finding 566952 (2024-002)

-
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-06-25
Audit: 359820
Organization: North East Community Action Corporation and Subsidiaries (MO)
Auditor: Uhy LLP

AI Summary

  • Issue: The Agency failed to conduct required biennial inspections for 2 out of 40 sampled housing units.
  • Impacted Requirement: Inspections must meet Housing Quality Standards (HQS) to avoid potential sanctions.
  • Recommended Follow-Up: Train additional staff to ensure timely inspections in line with HUD guidelines.

Finding Text

2024-002 U.S. Department of Housing and Urban Development Housing Voucher Cluster - 14.871 Section 8 Housing Choice Vouchers and 14.879 Mainstream Vouchers Condition and Criteria: The Agency must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS). The Agency did not perform inspections for two of the forty units in our sample. Cause: Procedures are in place for performing inspections, but due to inspector turnover, the inspections were not performed during the fiscal year. Effect: There is a possibility that sanctions could be imposed if they do not perform inspections as required by the program. Context: The Agency is aware of the requirement and has promoted an Inspector to oversee the processes and ensure the Agency is complying with the requirements. Auditor’s Recommendation: The Agency should train additional staff to insure the Agency can perform inspections timely as required by HUD guidelines. Views of Responsible Officials and Planned Corrective Actions: The Agency concurs and is implementing this recommendation.

Corrective Action Plan

2024-002 U.S. Department of Housing and Urban Development Housing Voucher Cluster - 14.871 Section 8 Housing Choice Vouchers and 14.879 Mainstream Vouchers Condition and Criteria: The Agency must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS). The Agency did not perform inspections for two units in our sample. Cause: Procedures are in place for performing inspections, but due to inspector turnover, the inspections were not performed during the fiscal year. Effect: There is a possibility that sanctions could be imposed if they do not perform inspections as required by the program. Context: The Agency is aware of the requirement and has promoted an Inspector to oversee the processes and ensure the Agency is complying with the requirements. Anticipated completion date: 9/30/25 Responsible party: Michelle Worthington, Section 8 Housing Director Please contact Vicky Pritchett, Finance Director at 573-213-4811 extension #10102 with questions regarding this plan.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 566951 2024-001
    Material Weakness Repeat
  • 566953 2024-003
    Material Weakness Repeat
  • 566954 2024-001
    Material Weakness Repeat
  • 566955 2024-002
    -
  • 566956 2024-003
    Material Weakness Repeat
  • 1143393 2024-001
    Material Weakness Repeat
  • 1143394 2024-002
    -
  • 1143395 2024-003
    Material Weakness Repeat
  • 1143396 2024-001
    Material Weakness Repeat
  • 1143397 2024-002
    -
  • 1143398 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $11.19M
14.879 Mainstream Vouchers $1.17M
14.896 Family Self-Sufficiency Program $74,233