Finding 59937 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-12-13

AI Summary

  • Core Issue: The PHA failed to provide documentation for HQS inspections, hindering compliance verification.
  • Impacted Requirements: Bi-annual inspections and quality control re-inspections were not properly documented, violating federal regulations.
  • Recommended Follow-up: Establish a robust system for compliance oversight and improve documentation practices to meet regulatory standards.

Finding Text

Criteria: "The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR ??982.405, 983.103))."Condition: During our audit, the Authority was unable to provide us with a reliable listing of HQS Inspections or any supporting documentation that any HQS inspections had taken place during the fiscal year under examination. Therefore, we were not able to perform the necessary procedures as described in the Uniform Guidance Part IV HUD 14.871 to ensure compliance with the above criteria. Context: We selected a sample of 40 failed inspections that occurred during the fiscal year. Out of the 40 samples selected, 1 of those lacked the proper documentation and 2 of those did not get reinspected within the proper timeframe. Cause: Controls over compliance associated with the Authority?s grants of federal funds are inadequate. Effect: The Authority is non-compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. Recommendations: We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views: Management agrees and has a corrective plan detailing the course of action to be taken in the next fiscal year.

Corrective Action Plan

Management received an audit finding on failure to complete required re-inspections within the required timeline of 30 days from the failed date. Prior staff that were here during this period of time that these findings occurred are no longer here and IHA now has a Director of Section 8 in place since April 2022 that will monitor that program and ensure that these inspections and follow up inspections from failed items are completed. I believe that the inspections were done but the prior HCV staff just did not put the 52580 Inspection Form in the file or make notes in the tenant file or electronic file. This is the reason that we have removed certain staff in this department and refilled these positions to control these errors. A tracking spreadsheet has been created for Biennial Inspections and Failed Item Re-inspections so that going forward, we don't miss them. Anticipated Completion Date: IHA has an Independent Contractor coming in on December 10-16 to review around 280 of the Section 8 files to review for any errors and make proper internal control measures to keep this from occurring in the future. Once the audit results are reported back to IHA, we can move forward and either schedule to have all of the files reviewed by the Independent Contractor or review the rest of the files as we pull them for their Annual Reexam.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 636379 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $9.85M
14.850 Public and Indian Housing $1.85M
14.872 Public Housing Capital Fund $958,664
14.895 Jobs-Plus Pilot Initiative $164,521
14.870 Resident Opportunity and Supportive Services - Service Coordinators $16,613