FAC Explorer

Finding 569421 (2024-023)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-06-30
Audit: 360910
Organization: District of Columbia Housing Authority (MD)
Auditor: Sb & Company LLC

AI Summary

  • Core Issue: The Authority failed to conduct timely reinspections and abate units that did not meet Housing Quality Standards (HQS), leading to non-compliance.
  • Impacted Requirements: Compliance with 24 CFR sections 982.158(d) and 982.404, which mandate timely inspections and abatement for units with cited deficiencies.
  • Recommended Follow-Up: Implement stronger controls to ensure timely reinspections and proper abatement of units failing to meet HQS requirements.

Finding Text

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Condition • For 47 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 7 of 60 files tested, the unit failed reinspection and there was no documentation that the unit was properly placed under abatement. Criteria When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404). Questioned Costs Unknown. Cause The Authority did not reinspect or abate units timely. Effect The Authority is not in compliance with HQS enforcement requirements. Recommendation We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated. Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Condition • For 8 of the 60 samples, we were unable to view biennial inspections being performed. Criteria The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS). The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Questioned Costs Unknown. Cause The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect The Authority is not in compliance with federal regulations regarding HQS inspections. Recommendation We recommend the Authority implements controls to ensure that HOS inspections are completed in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Corrective Action Plan

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Auditee’s Corrective Action Plan: The HCVP Inspections department has begun a department reorganization which includes updating Standard Operating Procedures (SOPs), enhancement to the Yardi inspections module, and training. The reorganization will allow oversight of DCHA inspection team and contracted inspection staff that was brought on to assist the backlog of annual inspections. Quality control measures have also been put into place to monitor the Yardi system of timely inspections, reinspections, and/or abatements. Contact Person: Anton Shaw, Director, Housing Choice Voucher Program Completion Date: September 30, 2026

Categories

HUD Housing Programs Special Tests & Provisions Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 569417 2024-021
    Material Weakness Repeat
  • 569418 2024-021
    Material Weakness Repeat
  • 569419 2024-021
    Material Weakness Repeat
  • 569420 2024-022
    Material Weakness Repeat
  • 569422 2024-024
    Material Weakness Repeat
  • 569423 2024-025
    Material Weakness Repeat
  • 569424 2024-022
    Material Weakness Repeat
  • 569425 2024-023
    Material Weakness Repeat
  • 569426 2024-024
    Material Weakness Repeat
  • 569427 2024-025
    Material Weakness Repeat
  • 569428 2024-022
    Material Weakness Repeat
  • 569429 2024-023
    Material Weakness Repeat
  • 569430 2024-024
    Material Weakness Repeat
  • 569431 2024-025
    Material Weakness Repeat
  • 1145859 2024-021
    Material Weakness Repeat
  • 1145860 2024-021
    Material Weakness Repeat
  • 1145861 2024-021
    Material Weakness Repeat
  • 1145862 2024-022
    Material Weakness Repeat
  • 1145863 2024-023
    Material Weakness Repeat
  • 1145864 2024-024
    Material Weakness Repeat
  • 1145865 2024-025
    Material Weakness Repeat
  • 1145866 2024-022
    Material Weakness Repeat
  • 1145867 2024-023
    Material Weakness Repeat
  • 1145868 2024-024
    Material Weakness Repeat
  • 1145869 2024-025
    Material Weakness Repeat
  • 1145870 2024-022
    Material Weakness Repeat
  • 1145871 2024-023
    Material Weakness Repeat
  • 1145872 2024-024
    Material Weakness Repeat
  • 1145873 2024-025
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.881 Mtw Housing Choice Voucher $252.23M
14.881 Mtw Operations $66.72M
14.881 Mtw Capital Fund $25.79M
14.871 Emergency Housing Voucher $18.72M
14.871 Section 8 Housing Vouchers (non-Mtw) $18.17M
18.879 Mainstream Voucher $2.07M
14.856 Section 8 Moderate Rehabilitiation Housing Assistance $1.76M
14.249 Section 8 Single Room Occupancy Housing Assistance $1.72M
14.870 Residential Opportunity and Supportive Services $359,352