Finding 571903 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-07-24

AI Summary

  • Core Issue: Two quality control reinspections were conducted more than three months after the initial inspections, violating HUD's Housing Quality Standards.
  • Impacted Requirements: Compliance with 24 CFR 982.405(b) regarding timely quality control reinspections.
  • Recommended Follow-Up: Review and adjust the scheduling process for quality control reinspections to ensure compliance with the three-month requirement.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster - Section 8 Housing Choice Vouchers / Mainstream Vouchers Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: OH003 - 2024 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: Housing Quality Standard (HQS) Quality Control inspections must be drawn from recently completed HQS inspections (i.e. performed during the three months preceding reinspection) (24 CFR 982.405(b)). Condition: During our testing of 22 quality control reinspections, we noted that two quality control reinspections were performed more than three months after the initial inspection. Questioned costs: Unknown Context: Testing of 22 Housing Voucher Cluster tenant files identified an exception in two files. In these instances, the quality control reinspections were not drawn from recently completed HQS inspections. Cause: We have revised our QC inspection instance generation process to ensure the 90-day window does not calculate based on the batch scheduling date but rather on the actual date of the inspection being reviewed. Going forward, any QC-related inspection that is conducted outside of the three-month compliance period will be excluded from sampling. Effect: The Authority is not in compliance with HUD guidelines for HQS requirements. Repeat Finding: No Recommendation: We recommend the Authority review their process for scheduling quality control reinspections to ensure they are performed timely. Views of responsible officials: CMHA would like to note that the 2024 sample size for QC for SEMAP compliance is approximately 95-100 inspections. Nonetheless, CMHA’s contracted vendor conducted over 170 QC inspections in 2024 and scheduled nearly double that amount. We are on track to far exceed the volume required by SEMAP sampling again this year. The team continues to review our inspections processes to ensure compliance with HQS guidelines and requirements.

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 571902 2024-001
    Significant Deficiency
  • 571904 2024-001
    Significant Deficiency
  • 1148344 2024-001
    Significant Deficiency
  • 1148345 2024-001
    Significant Deficiency
  • 1148346 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $47.36M
14.182 Lower Income Housing Assistance Program_section 8 New Construction/substantial Rehabilitation $25.72M
14.872 Public Housing Capital Fund $22.89M
14.866 Demolition and Revitalization of Severely Distressed Public Housing $7.47M
14.871 Section 8 Housing Choice Vouchers $3.71M
14.879 Mainstream Vouchers $1.34M
14.870 Resident Opportunity and Supportive Services - Service Coordinators $557,456
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $327,443
14.888 Lead-Based Paint Capital Fund Program $238,220
14.896 Family Self-Sufficiency Program $62,135