Finding 967153 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-31

AI Summary

  • Core Issue: The Authority is not conducting required quality control re-inspections for housing units, which violates HUD guidelines.
  • Impacted Requirements: The waiting list includes ineligible applicants, and there is no executed General Depository Agreement for bank accounts.
  • Recommended Follow-Up: Ensure quality control re-inspections are performed, update waiting list procedures, and obtain the necessary General Depository Agreement by June 30, 2024.

Finding Text

Condition and Criteria: The Authority’s purpose for existence is providing decent safe and affordable housing to low-income persons. As such, HUD requires the Authority to comply with special tests and provisions relating to its Housing Choice Voucher program. The Authority must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control re-inspections. The Authority must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). In addition, the PHA is required to obtain an executed General Depository Agreement for all bank accounts. During our testing of 10 HCV tenant files, we noted annual HQS inspections for all the tested units. However, the Authority did not perform the required quality control re-inspections. Tenants were selected and traced to the waiting list. However, as documented in the CMR, the waiting list did not include applicants that had been ineligible when they originally applied. We also were not provided with an executed General Depository Agreement. Due to the change in management, some bank accounts have not been able to update the authorized signers on the accounts. Auditor’s Recommendation: The Authority should perform housing quality control re-inspections according to HUD guidelines. The Authority should update its waiting list requirements and ensure that applicants are selected in the proper order. The PHA should obtain the required General Depository Agreement and make sure that current management and board members have access to all bank accounts. Grantee Response: We will comply with the auditor’s recommendation. Anticipated Completion Date: June 30, 2024

Categories

HUD Housing Programs Eligibility Special Tests & Provisions

Other Findings in this Audit

  • 390711 2023-001
    Significant Deficiency
  • 390712 2023-002
    Significant Deficiency
  • 390713 2023-003
    Significant Deficiency
  • 390714 2023-004
    Material Weakness
  • 390715 2023-005
    Significant Deficiency
  • 390716 2023-006
    Significant Deficiency
  • 967154 2023-002
    Significant Deficiency
  • 967155 2023-003
    Significant Deficiency
  • 967156 2023-004
    Material Weakness
  • 967157 2023-005
    Significant Deficiency
  • 967158 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $499,357
14.871 Section 8 Housing Choice Vouchers $412,093
14.872 Public Housing Capital Fund $346,365
14.195 Section 8 Housing Assistance Payments Program $214,618
10.415 Rural Rental Housing Loans $140,753