Audit 14268

Finding 2023-002 AL Number and Title: CFDA 14.881—MTW Demonstration Program for Vouchers – Special Tests – HQS Enforcement Criteria: The federal program's compliance requirements include timely reinspection of units that fail HQS inspections, particularly when violations are deemed life-threatening. Federal regulations require that when lifethreatening violations are identified, the unit must be reinspected within 24 hours. Furthermore, the program should enforce compliance through voucher abatements and potential voucher loss when necessary. Condition: During the audit, a sample of 40 HQS failed inspections were reviewed. Of these, 10 inspections revealed life-threatening violations that warranted re-inspections within 24 hours. However, no timely reinspections were conducted, and no voucher abatement steps were taken to enforce compliance. Cause: The cause of noncompliance was due to inadequate internal controls and oversight, leading to a failure to prioritize and conduct timely re-inspections of units with life-threatening violations. Additionally, there was a lack of documented voucher abatement steps taken to enforce compliance and potential voucher loss. Effect or Potential Effect: The failure to conduct timely re-inspections of units with life-threatening violations poses a significant risk to the safety and well-being of program participants. Additionally, the absence of voucher abatement steps and the failure to enforce compliance through potential voucher loss may result in noncompliance with federal program requirements and potential financial implications. Questioned Costs: To be determined based on the financial impact of noncompliance. Context: The noncompliance findings are based on a statistically valid sample of 40 HQS inspections. These findings may represent systemic issues in the administration of the MTW Demonstration Program for Vouchers. Further analysis is required to quantify the dollar value of questioned costs. Recommendation: The auditee should take the following corrective actions: (1) Implement and strengthen internal controls and procedures to ensure timely re-inspections of units with life-threatening violations, in accordance with federal requirements; (2) Develop and document clear voucher abatement steps to address instances of noncompliance with HQS standards; (3) Establish a process for enforcing compliance through voucher abatements and potential voucher loss when necessary. Responsible Official's Response and Corrective Action Planned: Management acknowledges the audit findings and is committed to taking corrective actions.

Finding 2023-002 AL Number and Title: CFDA 14.881—MTW Demonstration Program for Vouchers – Special Tests – HQS Enforcement Criteria: The federal program's compliance requirements include timely reinspection of units that fail HQS inspections, particularly when violations are deemed life-threatening. Federal regulations require that when lifethreatening violations are identified, the unit must be reinspected within 24 hours. Furthermore, the program should enforce compliance through voucher abatements and potential voucher loss when necessary. Condition: During the audit, a sample of 40 HQS failed inspections were reviewed. Of these, 10 inspections revealed life-threatening violations that warranted re-inspections within 24 hours. However, no timely reinspections were conducted, and no voucher abatement steps were taken to enforce compliance. Cause: The cause of noncompliance was due to inadequate internal controls and oversight, leading to a failure to prioritize and conduct timely re-inspections of units with life-threatening violations. Additionally, there was a lack of documented voucher abatement steps taken to enforce compliance and potential voucher loss. Effect or Potential Effect: The failure to conduct timely re-inspections of units with life-threatening violations poses a significant risk to the safety and well-being of program participants. Additionally, the absence of voucher abatement steps and the failure to enforce compliance through potential voucher loss may result in noncompliance with federal program requirements and potential financial implications. Questioned Costs: To be determined based on the financial impact of noncompliance. Context: The noncompliance findings are based on a statistically valid sample of 40 HQS inspections. These findings may represent systemic issues in the administration of the MTW Demonstration Program for Vouchers. Further analysis is required to quantify the dollar value of questioned costs. Recommendation: The auditee should take the following corrective actions: (1) Implement and strengthen internal controls and procedures to ensure timely re-inspections of units with life-threatening violations, in accordance with federal requirements; (2) Develop and document clear voucher abatement steps to address instances of noncompliance with HQS standards; (3) Establish a process for enforcing compliance through voucher abatements and potential voucher loss when necessary. Responsible Official's Response and Corrective Action Planned: Management acknowledges the audit findings and is committed to taking corrective actions.