Finding 824081 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-04-10

AI Summary

  • Core Issue: Two out of 40 units lacked required annual housing quality inspections.
  • Impacted Requirements: Inspections must occur at initial occupancy and annually to ensure units are decent, safe, and sanitary.
  • Recommended Follow-Up: Implement internal controls to ensure timely inspections and maintain reports in tenant files.

Finding Text

Criteria: Housing quality inspections must be performed at the time of initial occupancy and at least annually thereafter to assure that the units are decent, safe, and sanitary. Condition: 2 of the 40 units selected for testing did not have annual housing quality inspections completed within one year of the previous inspection. Cause: Procedures to ensure that the required annual housing inspections were performed within one year of the previous inspection did not exist. Effect: Housing could potentially not meet the requirement that it be decent, safe, and sanitary. Auditor's Recommendation: We recommend that an internal control procedure be implemented to ensure that the required annual housing inspections are performed within one year of the previous inspection and that the inspection reports are being maintained within the tenant files. View of Responsible Officials and Planned Corrective Action: Management will continue to work tenaciously to comply with "performing unit inspections on at lease an annual basis to determine whether the applicants and equipment in the unit are functioning properly and to assess whether a component needs to be repaired or replaced.? [HUD Occupancy Handbook, 4350.3 rev-1, Chapter 6 Lease Requirement and Leasing Activities, Section 6-29, Unit Inspection, Paragraph 3].

Categories

HUD Housing Programs Equipment & Real Property Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 247638 2022-001
    Significant Deficiency
  • 247639 2022-002
    Significant Deficiency
  • 824080 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.129 Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities $7.28M
14.314 Assisted Living Conversion for Eligible Multifamily Housing Projects $6.05M
14.195 Section 8 Housing Assistance Payments Program $3.79M