Finding 596674 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-07-09
Audit: 18756
Organization: Longmont Housing Authority (CO)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Authority failed to resolve life-threatening HQS deficiencies within the required 24-hour timeframe.
  • Impacted Requirements: Compliance with HUD's HQS enforcement standards is not being met, risking HAP payment issues.
  • Recommended Follow-up: Implement stronger controls to ensure timely resolution of HQS deficiencies and improve monitoring processes.

Finding Text

U.S. Department of Housing and Urban Development ? CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year ? Housing Choice Vouchers ? 2022 Special Tests and Provisions ? HQS Enforcement Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: For units under a HAP contract that fail to meet HQS requirements, the Authority must require the owner to correct life threatening HQS deficiencies within 24 hours after the inspection and all other HQS deficiencies within 30 calendar days or within a specified Authorityapproved extension. Condition: During our testing of compliance for HQS Enforcement, we identified 2 instances in which life threatening HQS deficiencies were not resolved within 24 hours of the inspection date. Cause: The Authority?s internal controls related to the proper monitoring and tracking of failed inspections and the subsequent passing of those inspections were not operating as designed. Effect: Weaknesses in internal control over compliance could result in the Authority failing to abate HAP payments to landlords as required by HUD. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 23 failed inspections were selected for testing. 2 out of the 23 failed inspections did not have proper documentation. Repeat Finding from Prior Year: No. Recommendation: We recommend that the Authority establish controls to ensure the proper enforcement of life threatening HQS deficiencies View of Responsible Officials: Management agrees with the finding.

Categories

HUD Housing Programs Subrecipient Monitoring Significant Deficiency Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

  • 20229 2022-004
    -
  • 20230 2022-004
    Significant Deficiency
  • 20231 2022-001
    Significant Deficiency
  • 20232 2022-002
    Significant Deficiency
  • 20233 2022-003
    Significant Deficiency
  • 596671 2022-004
    -
  • 596672 2022-004
    Significant Deficiency
  • 596673 2022-001
    Significant Deficiency
  • 596675 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $5.72M
21.027 Coronavirus State and Local Fiscal Recovery Funds $875,000
14.218 Community Development Block Grants/entitlement Grants $402,916
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $50,055