Finding 638184 (2022-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: Missing documentation for reinspection and follow-up on 4 out of 40 failed housing inspections indicates a lack of proper procedures.
  • Impacted Requirements: Housing assistance payments may have been made for units not meeting housing quality standards, violating HUD regulations.
  • Recommended Follow-Up: Strengthen procedures to ensure all inspection documentation and enforcement actions are properly maintained.

Finding Text

2022-003 ? SPECIAL TESTS AND PROVISIONS ? HQS ENFORCEMENT Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.871 ? Housing Voucher Cluster CRITERIA The PHA must not make any housing assistance payments for a dwelling unit that fails to meet the HQS, unless the owner corrects the defect within the period specified by the PHA and the PHA verifies the correction. If a defect is life threatening, the owner must correct the defect within no more than 24 hours. For other defects, the owner must correct the defect within no more than 30 calendar days (or any PHA-approved extension). (24 CFR 982.404 (3)) CONDITION Reinspection, follow up and/or abatement documentation was missing for 4 out of 40 initial failed inspections. CAUSE Procedures were not in place to properly document the corrections of deficiencies and abate the housing assistance payments when necessary. EFFECT The Authority may have made housing assistance payments to landlords for units that failed to meet housing quality standards QUESTIONED COSTS None Identified. CONTEXT There were 261 failed HQS inspections for the Housing Choice Voucher Program during 2022. We selected a sample of 40 failed HQS inspections. This was not a statistically valid sample. REPEAT FINDING Repeated from Finding 2021-005. RECOMMENDATION We recommend that procedures be strengthened to ensure that documentation is maintained for all inspections and enforcements. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Categories

HUD Housing Programs Material Weakness Special Tests & Provisions

Other Findings in this Audit

  • 61742 2022-003
    Material Weakness Repeat
  • 61743 2022-002
    Material Weakness Repeat
  • 61744 2022-004
    Material Weakness
  • 638185 2022-002
    Material Weakness Repeat
  • 638186 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $8.43M
14.850 Public and Indian Housing $3.97M
14.872 Public Housing Capital Fund $545,966
14.896 Family Self-Sufficiency Program $149,487
14.870 Resident Opportunity and Supportive Services - Service Coordinators $93,296