Finding 598959 (2022-003)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: The Authority lacks adequate policies and procedures for managing the Housing Choice Voucher program, leading to insufficient documentation of Housing Quality Standards (HQS) inspections.
  • Impacted Requirements: Compliance with HUD regulations regarding timely HQS inspections and documentation is not being met, risking the quality of assisted housing.
  • Recommended Follow-Up: Implement a tracking system for HQS inspections and establish supervisory quality control to ensure adherence to policies and HUD requirements.

Finding Text

U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Finding 2022-003: HCV Program Management - HUD Monitoring Review Special Tests and Provisions Housing Voucher Cluster ? CFDA #14.871 Material Weakness Statement of Condition HUD conducted a Monitoring Review in September 2022 resulting in 23 findings pertaining to the Housing Voucher Cluster primarily pertaining to the lack of sufficient policies and procedures to administer the Housing Choice Voucher program. In addition, the audit noted that the Authority was unable to provide documentation for HQS inspections conducted or enforcement actions taken. Criteria The Authority is to ensure that leased units meet Housing Quality Standards prior and during the term of occupancy in accordance with HUD rules and regulations. Cause The Authority relied on the former Executive Director to conduct HQS inspections and such prior inspections were not tracked and/or documented in participant files. Effect or Potential Effect Staff was unable to effectively monitor, or track inspection deadlines and units were assisted without conducting HQS inspections within the required timeframes. Context A sample of 15 files were selected to audit HQS inspections from a population of 110. The test found five files lacked a current year inspection including three of which that indicated prior failed HQS items without evident of enforcement or passed inspection from the prior year. Recommendation The Authority must conduct, track, and enforce HQS inspection in accordance with its HCV Administrative Plan, as currently revised. In addition, the Authority should implement a process for supervisory quality control HQS inspection to ensure adherence to its policies and comply with HUD Requirements. Management?s Response Management agrees with finding, see Corrective Action Plan for plan of action.

Categories

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring Material Weakness

Other Findings in this Audit

  • 22516 2022-002
    Significant Deficiency
  • 22517 2022-003
    Material Weakness
  • 598958 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.18M
14.850 Public and Indian Housing $317,703