Finding 615214 (2022-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-10-27

AI Summary

  • Core Issue: Inspections for housing units are being conducted, but re-inspections are not happening within the required 30 days after a failure.
  • Impacted Requirements: This violates federal guidelines outlined in 2 CFR 200.514(c) and 2 CFR 200.305(b)(3).
  • Recommended Follow-Up: Implement stronger internal controls to ensure timely re-inspections and compliance with federal reimbursement requests.

Finding Text

2022-001 ? Housing Quality Standards Inspections Federal Program Information: U.S. Department of Housing and Urban Development - Housing Choice Voucher: AL - 14.871 Section 8 Housing Choice Voucher Criteria: The following CFR(s) apply to this finding: 2 CFR 200.514(c), 2 CFR section 200.305(b)(3). Condition: During audit procedures, it was identified that the Unit?s inspections were being completed but if there was a failure, re-inspections were not completed as required within the 30-day period. Cause: The Unit does not have the necessary internal controls over compliance. Effect: The Unit is not effectively reinspecting units. Identification of Questioned Costs: None identified. Context: The population of 40 tenants were examine and there was 14 that had a failed inspection with no reinspection. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Unit implement internal control processes and procedures to ensure that federal reimbursements requests are submitted on a timely basis. Views of Responsible Officials and Corrective Action Plan: Catherine Bowler, Director of Finance and Operations is the responsible Official and please see the Corrective Action Plan issued by the Laconia Housing and Redevelopment Authority.

Categories

HUD Housing Programs Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 38772 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $3.88M
10.415 Rural Rental Housing Loans $1.44M
10.427 Rural Rental Assistance Payments $152,407
14.170 Congregate Housing Service Program $8,886