Finding 961234 (2023-004)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-03-26

AI Summary

  • Core Issue: The Authority lacks adequate internal controls for Housing Quality Standards (HQS) inspections, leading to noncompliance with HUD requirements.
  • Impacted Requirements: Biennial inspections and timely abatement/enforcement actions were not consistently followed, affecting 13 out of 40 units tested.
  • Recommended Follow-Up: Review and enhance the inspection process and documentation in Yardi, and ensure timely enforcement of HQS deficiencies.

Finding Text

2023 – 004 – Housing Voucher Cluster - HQS Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879/14.EHV Federal Award Identification Number and Year: VA003, 2022-2023 Award Period: July 1, 2022 – June 30, 2023 Type of Finding: Material Weakness, Material Noncompliance (Modified Opinion) Criteria or specific requirement: Housing Quality Standards Inspections The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). HQS Enforcement For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAP's beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not have sufficient internal controls over Housing Quality Standards to ensure compliance with HUD requirements. Context: During our testing of 40 tenants for Annual HQS requirements, we noted the following: - 13 of 40 units tested did not have documentation of a completed HQS inspection within 24 months of the effective date. - 30 of 40 units tested did not have inspections performed on a biennial basis. - 10 of 40 tenants tested did not have an inspection report that was signed off as completed by the inspector. During our testing of 9 failed inspections, we noted 4 instances where abatement was not properly started and 2 instances where the Authority failed to enforce the family obligation in a timely manner. During our testing of 4 quality control (QC) re-inspections, we noted 2 instances where the QC inspection was not performed within 3 months of the original inspection. 1 file did not list the QC inspector’s name. 2 files had the same QC inspector for both the original inspection and the re-inspection. Questioned costs: $6,800 Cause: The staff performing the inspections did not properly use the Yardi software program available to conduct and document the inspection process. Additional training will be provided to staff. Effect: The Authority is not in compliance with HUD regulations regarding HQS inspections or HQS enforcement, which could have an impact on HAP calculations. Repeat Finding: No Recommendation: We recommend the Authority review their inspection process to ensure that they are performed timely and that all documentation is maintained within Yardi. We recommend the Authority review their process for abatement/enforcing family obligations to ensure timely correction and enforcement. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Questioned Costs HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 384786 2023-001
    Significant Deficiency Repeat
  • 384787 2023-003
    Material Weakness
  • 384788 2023-004
    Material Weakness
  • 384789 2023-005
    Material Weakness
  • 384790 2023-006
    Significant Deficiency
  • 384791 2023-003
    Material Weakness
  • 384792 2023-004
    Material Weakness
  • 384793 2023-005
    Material Weakness
  • 384794 2023-006
    Significant Deficiency
  • 384795 2023-003
    Material Weakness
  • 384796 2023-004
    Material Weakness
  • 384797 2023-005
    Material Weakness
  • 384798 2023-006
    Significant Deficiency
  • 384799 2023-002
    Significant Deficiency Repeat
  • 384800 2023-002
    Significant Deficiency Repeat
  • 384801 2023-002
    Significant Deficiency Repeat
  • 384802 2023-002
    Significant Deficiency Repeat
  • 384803 2023-002
    Significant Deficiency Repeat
  • 384804 2023-002
    Significant Deficiency Repeat
  • 961228 2023-001
    Significant Deficiency Repeat
  • 961229 2023-003
    Material Weakness
  • 961230 2023-004
    Material Weakness
  • 961231 2023-005
    Material Weakness
  • 961232 2023-006
    Significant Deficiency
  • 961233 2023-003
    Material Weakness
  • 961235 2023-005
    Material Weakness
  • 961236 2023-006
    Significant Deficiency
  • 961237 2023-003
    Material Weakness
  • 961238 2023-004
    Material Weakness
  • 961239 2023-005
    Material Weakness
  • 961240 2023-006
    Significant Deficiency
  • 961241 2023-002
    Significant Deficiency Repeat
  • 961242 2023-002
    Significant Deficiency Repeat
  • 961243 2023-002
    Significant Deficiency Repeat
  • 961244 2023-002
    Significant Deficiency Repeat
  • 961245 2023-002
    Significant Deficiency Repeat
  • 961246 2023-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $5.46M
14.889 Choice Neighborhoods Implementation Grants $2.38M
14.872 Public Housing Capital Fund $1.87M
14.879 Mainstream Vouchers $1.09M
14.218 Community Development Block Grants/entitlement Grants $574,604
14.871 Section 8 Housing Choice Vouchers $244,041
14.195 Section 8 Housing Assistance Payments Program $240,266
14.896 Family Self-Sufficiency Program $168,232
14.267 Continuum of Care Program $115,390
14.870 Resident Opportunity and Supportive Services - Service Coordinators $71,309
14.239 Home Investment Partnerships Program $61,922
14.182 Section 8 New Construction and Substantial Rehabilitation $55,474