Housing Authority of the City of Pasco & Franklin County

Criteria: HUD requires that all units under the Housing Choice Vouchers Program meet specific Housing Quality Standards (HQS). In cases of failed inspections, timely re-inspections are mandatory, and if compliance is not achieved, abatement of Housing Assistance Payments (HAP) or voucher cancellation is required Condition: During the audit, it was noted that in one (1) instance a unit that failed its HQS inspection (life­threatening failure) did not undergo a subsequent reinspection within the proper 24-hour time period: Consequently, the required abatement of HAP or cancellation of the housing voucher was not executed. Context: This finding represents an issue within the Housing Voucher Cluster program, as it was identified in one (1) files tested out of a sample of two (2) failed inspections. It highlights a need for more rigorous enforcement and monitoring ofHQS compliance Cause: The non-compliance appears to stem from oversight or procedural lapses in the enforcement of HQS within the Housing Voucher Cluster program. This may be due to inadequate training, monitoring, or failure to adhere to established protocols Effect: This non-compliance undermines the integrity of the Housing Choice Vouchers Program and may lead to tenants living in substandard conditions. It also represents a risk of improper use of federal funds and can impact the credibility and effectiveness of the program. Recommendation: Implement more stringent procedures for monitoring HQS compliance, including timely reinspection and enforcement of HAP abatement or voucher cancellation. Enhance training for staff involved in the HQS process to ensure a thorough understanding of compliance requirements. Establish a system of regular audits to identify and rectify lapses in HQS enforcement promptly. Questioned CostsL The exact monetary impact needs further investigation to determine the amount of HAP that should have been abated for the period of non-compliance. A. HACPFC Corrective Actio11 P/all: Our staff who conduct the HCV inspections are certified in both HQS and NSP IRE Standards. This failure to re-inspect this life-threatening finding within 24 hours after the discovery was an obvious oversight by our inspection staff as they are all aware of this requirement. However, the Agency will review internal controls related to training and will ensure that all inspectors are provided with additional training to reinforce compliance with the 24-hour re-inspection requirement and follow up with the landlord to verify compliance and penalty if required. The HA CP FC will also continue to review process over the auditing of tenant files to ensure that there are no lapses in the compliance requirements. B. A1tticipated Completion Date: This is already in progress.

Criteria: Neither the PHA nor any of its contractors or subcontractors may enter into any contract or arrangement in connection with the HCV program in which any of the following classes of persons has any interest, direct or indirect, during tenure or for one year thereafter (2) Any employee of the PA, or any contractor, subcontractor or agent of the PHA, who formulates policy or who influences decisions with respect to the programs (24 CFR sections 982.161). Condition: During the audit, it was noted that multiple (3) participants of the HCV program were either employees or relatives of employees. Context: According to 24 CFR 982.161, any employee who exercise authority over the PHA cannot receive benefits. However, past OIG action has issued findings to Public Housing Authority entitles when any employee and immediate family member receives benefits as unallowable cost. The OIG's concern seems to be that the tenant may have received special treatment at admission or is currently receiving special treatment related to rent calculation, unit inspections, etc. The OIG regarded the HAP costs as ineligible and recommended that the PHA re-pay the funds. Cause: The non-compliance appears to stem from ambiguity in the Housing Authority's policy relating to Conflict of Interest. Effect: The Conflict of Interest undermines the community's trust with the Housing Choice Vouchers Program. It also represents a risk of improper use of federal funds and can impact the credibility and effectiveness of the program. Recommendations: Update the Authority's Conflict of Interest policy and implement more stringent procedures for monitoring Conflict of Interest. Questioned Costs: The exact monetary impact needs further investigation to determine the amount of HAP that should have been unallowable for the period of non-compliance. Management Views: Management Agrees - see Corrective Action Plan ecommended in the Independent Auditor's Report as it pertains to internal controls over our HCV program. Please note, our agency is in the midst of transitioning between executive directors - therefore, we request additional time so that our personnel policy can be gone through by our new executive director, after which such individual is hired, reviewed by our agency attorney, and then approved by our board of commissioners. This process will take additional time to complete. Our agency will review its internal control over annual policy reviews to ensure that all policies, not just our "Coriflict of Interest Policy", are adhered to. Below is our current HACPFC Coriflict of Interest Policy, followed by our proposed amended Coriflict of Interest Policy. You are to avoid placing yourself in a position that may create or lead to a conflict of interest or the appearance of one. A conflict of interest exists when there is evidence of or the appearance that a commissioner's/employee's personal interests have influenced or may influence HACPFC transactions or operations, or that these interests take precedence over the interests, goals, and/or mission of HACPFC. Or a situation where a benefit or advantage of an economic or tangible nature that might inure to an HACPFC employee, creates a potential bias or loss of independence of judgment in the performance of that employee's or Commissioner's duties. For the purpose of this policy, a relative is defined as a spouse/significant other, parent, sibling, child, grandchild, grandparent, parent-in-law, brother-in-law, sister-in-law, daughter-in-law, son in-law, aunt, uncle, niece, nephew, cousin, stepparent, or stepchild. An actual, potential, or perceived conflict of interest occurs when an employee, contractor, agent, officer, or member of the Board of Commissioners is in a position to influence a decision that may result in a personal gain for that employee or for a relative as a result of the HACPFC's business dealings. Employees need to refrain from conducting business that presents a conflict of interest as described above. No "presumption of guilt" is created by the mere existence of a relationship with outside firms. However, if employees have any influence on transactions involving purchases, contracts, or leases, it is imperative that they disclose to the Executive Director of HACPFC as soon as possible the existence of any actual or potential conflict of interest so that safeguards can be established to protect all parties. Employees should avoid any situations which involves or may involve a conflict between their personal interest and the interest in HACPFC or any other arrangement or circumstances including family or other personal relationships, which might dissuade the employees from acting in the best interest of HACPFC. All employees will be required to sign the Employee Conflict of Interest Disclosure Form as part of employment. You are also prohibited from having any personal interest, directly or indirectly, in any transaction with HACPFC or from otherwise using your position to secure special privileges for yourself or others. You may not directly or indirectly give or receive any compensation, gift, reward or gratuity from any source other than HACPFC for any matter or service which relates directly or indirectly in any way to your work for HACPFC. You also may not accept or engage in any business, personal or professional activity that might be reasonably expected to require or induce you to disclose confidential or proprietary information regarding HACPFC or its applicants, tenants or program participants. If you have any questions regarding whether a conflict may exist, you should ask the Executive Director before engaging in the conduct at issue. Proposed Personnel Policv Change/ added language in red: Gifts: Conflict of Interest: You are to avoid placing yourself in a position that may create or lead to a conflict of interest or the appearance of one. A conflict of interest generally exists when there is evidence of or the appearance that a commissioner's/employee's personal interests have influenced or may influence HACPFC transactions or operations, or that these interests take precedence over the interests, goals, and/or mission of HACPFC.