Finding 606726 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-27
Audit: 31889
Organization: Waukegan Housing Authority (IL)
Auditor: Aprio LLP

AI Summary

  • Core Issue: Five out of twelve units failed to be re-inspected within the required 30 days after initial HQS inspections.
  • Impacted Requirements: This non-compliance violates HUD regulations regarding timely inspections and corrections of Housing Quality Standards deficiencies.
  • Recommended Follow-Up: Strengthen internal controls and provide additional training to ensure timely re-inspections and compliance with HUD guidelines.

Finding Text

Finding 2022 - 001 - Housing Choice Vouchers HQS Inspection Deficiencies Housing Choice Vouchers ? CFDA No. 14.871; Grant period - year ended December 31, 2022 Criteria: The Code of Federal Regulations and HUD guidelines give the requirements for annual inspections to determine if the units leased to families meet the Housing Quality Standards. Specifically, HUD regulations CFR Parts 982.158 and 982.404 require inspections of units under HAP contract that fail to meet HQS. The PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. Condition & Cause: HQS inspections were tested for compliance in the current year. Of the 12 failed HQS inspections selected for review: 5 units were not re-inspected within the 30-day requirement. Effect: Non-compliance with HUD regulations. Questioned Costs: None Identified Repeat Finding: No Recommendation: We recommend the Authority should continue to strengthen its internal controls in relation to the HQS inspection and re-inspection process to ensure that they are completed within the required time-frame to meet the compliance requirements. Management?s Response to Finding: We concur with the recommendation, and we will put procedures in place to make sure that the financial reports are submitted to HUD within the required time. Responsible Party: Charles Chambers, Jr., Executive Director, (847)244-8500. Anticipated Completion Date: December 31, 2023 Reply: The Authority is in the continuing to work on the procedures for failed inspections to ensure that the re-inspections are performed within the 30-day requirement. The Authority is also planning on additional training for employees to make sure they are qualified to meet the HQS re-inspection requirements. Charles Chambers, Jr., Executive Director, expects the deficiencies which led to this finding to be resolved and this finding to be cleared in the 2023 fiscal year audit.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $6.98M
14.850 Public and Indian Housing $1.42M
14.872 Public Housing Capital Fund $383,722
14.879 Mainstream Vouchers $216,444
14.896 Family Self-Sufficiency Program $92,419