Finding Text
2023-001: Lack of Documentation for Unit Inspections
Federal Departments: Department of Housing and Urban Development
Assistance Listing #: 14.239
Internal Controls Significant Deficiency & Noncompliance
Category of Finding – Special Tests and Provisions: Housing Quality Standards
Criteria – During the period of affordability, the Organization must perform on-site inspections of rental housing occupied by tenants receiving HOME-assisted tenant-based rental assistance to determine compliance with housing quality standards.
Condition – Personnel at the Organization were unable to produce documentation supporting the inspections for three of the six units tested.
Cause – The Organization has an informal process for unit inspections. The documentation of the inspections was not always maintained.
Effect – Housing quality standards may not be being maintained and needed repairs may not be made timely.
Recommendation – We recommend that management create written unit inspection policies and procedures and inspections be kept in the file when they are completed.
Auditee’s comments and response – The Organization changed management companies after June 30, 2023. The new management company has written policies and procedures and will ensure unit inspections are maintained in the tenant files.
Responsible party for corrective action: Deqa Essa, Chief Financial Officer