Finding 600312 (2022-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-26
Audit: 19862

AI Summary

  • Core Issue: The Authority failed to conduct timely annual inspections of housing units, violating HUD regulations.
  • Impacted Requirements: Non-compliance with 24 CFR sections 982.158(d) and 982.405(b) regarding Housing Quality Standards inspections.
  • Recommended Follow-up: Review and update HQS inspection policies to ensure timely inspections and proper documentation are maintained.

Finding Text

Finding 2022-003 ? Annual HQS Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 Award Period: 7/1/21-6/30/22 Type of Finding: Material Weakness in Internal Control Over Compliance Criteria: 24 CFR sections 982.158(d) and 982.405(b) state that the PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct qualify control re-inspections. The PHA must prepare a unit inspection report. Context: During our testing of 60 files for HQS inspection criteria, we noted the following: - 20 of 60 files tested had an inspection that was not performed timely. Questioned Costs: Unable to determine. Cause: The Authority did not have written procedures in place prior to 2021 for documenting inspections. Support was often not available for prior period inspections and/or inspections were not completed timely. The Authority experienced challenges during COVID in completing inspections timely. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes Recommendation: The Authority should review their HQS inspection policies to ensure that all inspections are performed timely and that all necessary documentation is maintained for each inspection. View of Responsible Officials: There is no disagreement with this audit finding.

Categories

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 23868 2022-001
    Significant Deficiency Repeat
  • 23869 2022-002
    Significant Deficiency Repeat
  • 23870 2022-003
    Material Weakness Repeat
  • 23871 2022-004
    Significant Deficiency Repeat
  • 23872 2022-001
    Significant Deficiency Repeat
  • 23873 2022-002
    Significant Deficiency Repeat
  • 23874 2022-003
    Material Weakness Repeat
  • 23875 2022-004
    Significant Deficiency Repeat
  • 600310 2022-001
    Significant Deficiency Repeat
  • 600311 2022-002
    Significant Deficiency Repeat
  • 600313 2022-004
    Significant Deficiency Repeat
  • 600314 2022-001
    Significant Deficiency Repeat
  • 600315 2022-002
    Significant Deficiency Repeat
  • 600316 2022-003
    Material Weakness Repeat
  • 600317 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $9.04M
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $330,481
14.182 Section 8 New Construction and Substantial Rehabilitation $275,551
14.871 Emergency Housing Voucher $187,157
10.415 Rural Rental Housing Debt $99,369
10.427 Rural Rental Assistance Payments $70,850
10.415 Rural Rental Housing Subsidy $11,532
14.239 Home/tenant Based Assistance $0