FAC Explorer

Finding 9572 (2023-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-01-23
Audit: 13226
Organization: Northwest Oregon Housing Authority (OR)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The U.S. Department of Housing and Urban Development found a material weakness in internal controls over compliance regarding housing unit inspections.
  • Impacted Requirements: The Public Housing Authority (PHA) failed to conduct bi-annual inspections and improperly used self-certification forms beyond the allowed timeframe.
  • Recommended Follow-Up: The Authority should revise its inspection policies to ensure timely inspections and proper documentation for compliance with HUD regulations.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Award Period: 7/1/22-6/30/23 Type of Finding: Material Weakness in Internal Control Over Compliance Criteria: 24 CFR sections 982.158(d) and 982.405(b) state that the PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct qualify control re-inspections. The PHA must prepare a unit inspection report. Context: During our testing of 60 files for HQS inspection criteria, we noted the following: - 10 of 60 files tested had an inspection that was not performed within the bi-annual period. - 3 of 60 files tested utilized self-certification forms past the allowable time frame. Questioned Costs: Unable to determine. Cause: Prior to 2021, NOHA did not have written procedures in place for documenting inspections. NOHA applied the COVID waivers which allowed for more than 24 months in between inspections; and, NOHA attempted to acquire landlord self-certifications but in a small number of cases, did not receive the certification or it was not received by the due date. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes Recommendation: The Authority should review their HQS inspection policies to ensure that all inspections are performed timely, and that all necessary documentation is maintained for each inspection. View of Responsible Officials: There is no disagreement with this audit finding.

Corrective Action Plan

2023-003 Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: The Authority should review their HQS inspection policies to ensure that all inspections are performed timely, and that all necessary documentation is maintained for each inspection. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Northwest Oregon Housing Authority has reviewed its inspection policies regarding timely inspections. All units are being scheduled in a biennial cycle. The units noted in this audit all had inspections completed in 2021 or 2022. The units inspected in 2021 have subsequently been inspected (and passed HQS) in 2023, and the units inspected in 2022 are or will be scheduled in 2024, thus resolving this finding. Name(s) of the contact person(s) responsible for corrective action: Sandra Soucie, HCV Manager, HCVManager@nwoha.org Planned completion date for corrective action plan: 1/31/2024 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Hsu-Feng Andy Shaw, Executive Director, at 503-861-0119.

Categories

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 9568 2023-001
    Significant Deficiency Repeat
  • 9569 2023-001
    Significant Deficiency Repeat
  • 9570 2023-002
    Significant Deficiency Repeat
  • 9571 2023-002
    Significant Deficiency Repeat
  • 9573 2023-003
    Material Weakness Repeat
  • 586010 2023-001
    Significant Deficiency Repeat
  • 586011 2023-001
    Significant Deficiency Repeat
  • 586012 2023-002
    Significant Deficiency Repeat
  • 586013 2023-002
    Significant Deficiency Repeat
  • 586014 2023-003
    Material Weakness Repeat
  • 586015 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $554,937
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $307,900
14.182 Section 8 New Construction and Substantial Rehabilitation $249,323
10.415 Rural Rental Housing Loans $88,782
21.027 Coronavirus State and Local Fiscal Recovery Funds $75,000
10.427 Rural Rental Assistance Payments $70,850