Finding 611550 (2022-003)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-12-27

AI Summary

  • Issue: The Authority failed to conduct required annual inspections of Low Rent Public Housing units.
  • Requirements: 24 CFR 5.705 mandates annual inspections following HUD guidelines to ensure housing quality.
  • Follow-up: The Authority must implement annual inspections to ensure units are decent, safe, and sanitary, addressing oversight and internal control gaps.

Finding Text

Condition: The Authority did not conduct annual inspections of its Low Rent Public Housing units. Criteria: 24 CFR 5.705 require that the Authority annually inspect its units in accordance with HUD-prescribed physical inspection procedures. Context: As part of our audit of eligibility of the Public and Indian Housing program, the auditor noted that annual inspections were not completed in a timely manner. Cause: Lack of proper oversight contributed to the noncompliance noted. The Authority did not have adequate internal controls in place over failed inspections. Effect: The Authority?s Low Rent Public Housing units may not be decent, safe, sanitary and in good repair. The lack of annual inspections resulted in excessive costs related to unit turnover. Questioned Costs: None. Auditor Recommendations: The Authority should conduct inspections of its Low Rent Public Housing units annually in accordance with HUD requirements to comply with the housing stock being decent, safe, sanitary and in good repair. Management Response: See Corrective Action Plan.

Categories

HUD Housing Programs Internal Control / Segregation of Duties Eligibility

Other Findings in this Audit

  • 35100 2022-004
    Material Weakness
  • 35101 2022-005
    Material Weakness
  • 35102 2022-004
    Material Weakness
  • 35103 2022-005
    Material Weakness
  • 35104 2022-002
    Material Weakness
  • 35105 2022-003
    Material Weakness
  • 35106 2022-005
    Material Weakness
  • 35107 2022-002
    Material Weakness
  • 35108 2022-003
    Material Weakness
  • 35109 2022-005
    Material Weakness
  • 611542 2022-004
    Material Weakness
  • 611543 2022-005
    Material Weakness
  • 611544 2022-004
    Material Weakness
  • 611545 2022-005
    Material Weakness
  • 611546 2022-002
    Material Weakness
  • 611547 2022-003
    Material Weakness
  • 611548 2022-005
    Material Weakness
  • 611549 2022-002
    Material Weakness
  • 611551 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $3.66M
14.850 Public and Indian Housing $440,778
14.871 Covid-19 Section 8 Housing Choice Vouchers $91,403
14.850 Covid-19 Public and Indian Housing $20,209