2023-001 - Eligibilty
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program: Housing Voucher Cluster
FALN: 14.871/14.879
Federal Awared Identification Number and Year: MD023, 2023
Award Period: 1/1/2023 - 12/31/23
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters
Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516)
Condition: The Commission did not follow it policies and procedures designed to ensure compliance with eligibility requirements.
Questioned costs: Unknown
Context: Testing of 40 HCVP files indicated that 1 file had incorrect income used to calculate tenant rent and HAP.
Cause: The Commission must verify income annually through third party verification and perform a calculation. The Commission did not complete this correctly.
Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP calculations.
Recommendation: We recommend that the Commission review its process for collecting third party income support to ensure the accurate data is used as part of the rent and HAP calculation.
Views of responsible officials: There is no disagreement with the audit finding.
2023-003 - HQS Inspections
Federal Agency: Housing Choice Voucher Program
FALM: 14.871/14.879
Federal Award Identification Number and Year: MD023, 2023
Award Period: 1/1/2023 - 12/31/2023
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion)
Criteria or specific requirement: 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)).
Condition: The Commission did not follow its policies and procedures designed to ensure HQS inspections were performed timely.
Questioned costs: Unknown
Context: During our testing of 60 files over HQS inspections, we noted the following:
- 24 of 60 units tested had an inspection that was not performed on a biennial basis as required per the Commission’s Administrative Plan.
Cause: HCHC employs a third-party inspection company. Many of the issues caused by the previous inspection company did not surface until early in 2023.
Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP calculations.
Repeat finding: Yes, 2022-003
Recommendation: We recommend the Commission review its HQS inspection policies and procedures and discuss these standards with the third-party inspection company that is utilized for these inspections to ensure all inspections are performed timely and that all necessary documentation is maintained for each inspection.
Views of responsible officials: There is no disagreement with the audit finding.
2023-003 - HQS Failed Inspections
Federal Program: Housing Choice Voucher Program
FALN: 14.871/14.879
Federal Award Identification Nuber and Year: MD023,2023
Award Period: 1/1/2023 - 12/31/2023
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion)
Criteria or specific requirement: 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) HAPs beginning no later than the first of the month following the specified incorrect period or must terminate the HAP contract (24 CFR sections 982.158(d) and 982.404).
Condition: The Commission did not properly enforce consequences to landlords or tenants of units that did not pass inspections in a timely manner.
Questioned costs: Unknown
Context: During our testing of 40 files for HQS enforcement, we noted the following:
- 27 of 40 units tested failed inspection due to owner responsibilities and the Commission never abated HAP.
- 2 of 40 units tested failed due to tenant responsibilities and the Commission did not take proper steps to enforce family obligations.
Cause: HCHC employs a third-party inspection company. Many of the issues caused by the previous inspection company did not surface until early in 2023.
Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP paid.
Repeat finding: Yes, 2022-004
Recommendation: We recommend the Commission review their abatement procedures to ensure that for any unit that has not met the HQS standards that HAP is properly abated as well as review their procedures for enforcing correction of deficiencies to tenants.
Views of responsible officials: There is no disagreement with the audit finding.
2023-001 - Eligibilty
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program: Housing Voucher Cluster
FALN: 14.871/14.879
Federal Awared Identification Number and Year: MD023, 2023
Award Period: 1/1/2023 - 12/31/23
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters
Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516)
Condition: The Commission did not follow it policies and procedures designed to ensure compliance with eligibility requirements.
Questioned costs: Unknown
Context: Testing of 40 HCVP files indicated that 1 file had incorrect income used to calculate tenant rent and HAP.
Cause: The Commission must verify income annually through third party verification and perform a calculation. The Commission did not complete this correctly.
Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP calculations.
Recommendation: We recommend that the Commission review its process for collecting third party income support to ensure the accurate data is used as part of the rent and HAP calculation.
Views of responsible officials: There is no disagreement with the audit finding.
2023-003 - HQS Inspections
Federal Agency: Housing Choice Voucher Program
FALM: 14.871/14.879
Federal Award Identification Number and Year: MD023, 2023
Award Period: 1/1/2023 - 12/31/2023
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion)
Criteria or specific requirement: 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)).
Condition: The Commission did not follow its policies and procedures designed to ensure HQS inspections were performed timely.
Questioned costs: Unknown
Context: During our testing of 60 files over HQS inspections, we noted the following:
- 24 of 60 units tested had an inspection that was not performed on a biennial basis as required per the Commission’s Administrative Plan.
Cause: HCHC employs a third-party inspection company. Many of the issues caused by the previous inspection company did not surface until early in 2023.
Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP calculations.
Repeat finding: Yes, 2022-003
Recommendation: We recommend the Commission review its HQS inspection policies and procedures and discuss these standards with the third-party inspection company that is utilized for these inspections to ensure all inspections are performed timely and that all necessary documentation is maintained for each inspection.
Views of responsible officials: There is no disagreement with the audit finding.
2023-003 - HQS Failed Inspections
Federal Program: Housing Choice Voucher Program
FALN: 14.871/14.879
Federal Award Identification Nuber and Year: MD023,2023
Award Period: 1/1/2023 - 12/31/2023
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion)
Criteria or specific requirement: 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) HAPs beginning no later than the first of the month following the specified incorrect period or must terminate the HAP contract (24 CFR sections 982.158(d) and 982.404).
Condition: The Commission did not properly enforce consequences to landlords or tenants of units that did not pass inspections in a timely manner.
Questioned costs: Unknown
Context: During our testing of 40 files for HQS enforcement, we noted the following:
- 27 of 40 units tested failed inspection due to owner responsibilities and the Commission never abated HAP.
- 2 of 40 units tested failed due to tenant responsibilities and the Commission did not take proper steps to enforce family obligations.
Cause: HCHC employs a third-party inspection company. Many of the issues caused by the previous inspection company did not surface until early in 2023.
Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP paid.
Repeat finding: Yes, 2022-004
Recommendation: We recommend the Commission review their abatement procedures to ensure that for any unit that has not met the HQS standards that HAP is properly abated as well as review their procedures for enforcing correction of deficiencies to tenants.
Views of responsible officials: There is no disagreement with the audit finding.
2023-001 - Eligibilty
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program: Housing Voucher Cluster
FALN: 14.871/14.879
Federal Awared Identification Number and Year: MD023, 2023
Award Period: 1/1/2023 - 12/31/23
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters
Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516)
Condition: The Commission did not follow it policies and procedures designed to ensure compliance with eligibility requirements.
Questioned costs: Unknown
Context: Testing of 40 HCVP files indicated that 1 file had incorrect income used to calculate tenant rent and HAP.
Cause: The Commission must verify income annually through third party verification and perform a calculation. The Commission did not complete this correctly.
Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP calculations.
Recommendation: We recommend that the Commission review its process for collecting third party income support to ensure the accurate data is used as part of the rent and HAP calculation.
Views of responsible officials: There is no disagreement with the audit finding.
2023-003 - HQS Inspections
Federal Agency: Housing Choice Voucher Program
FALM: 14.871/14.879
Federal Award Identification Number and Year: MD023, 2023
Award Period: 1/1/2023 - 12/31/2023
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion)
Criteria or specific requirement: 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)).
Condition: The Commission did not follow its policies and procedures designed to ensure HQS inspections were performed timely.
Questioned costs: Unknown
Context: During our testing of 60 files over HQS inspections, we noted the following:
- 24 of 60 units tested had an inspection that was not performed on a biennial basis as required per the Commission’s Administrative Plan.
Cause: HCHC employs a third-party inspection company. Many of the issues caused by the previous inspection company did not surface until early in 2023.
Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP calculations.
Repeat finding: Yes, 2022-003
Recommendation: We recommend the Commission review its HQS inspection policies and procedures and discuss these standards with the third-party inspection company that is utilized for these inspections to ensure all inspections are performed timely and that all necessary documentation is maintained for each inspection.
Views of responsible officials: There is no disagreement with the audit finding.
2023-003 - HQS Failed Inspections
Federal Program: Housing Choice Voucher Program
FALN: 14.871/14.879
Federal Award Identification Nuber and Year: MD023,2023
Award Period: 1/1/2023 - 12/31/2023
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion)
Criteria or specific requirement: 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) HAPs beginning no later than the first of the month following the specified incorrect period or must terminate the HAP contract (24 CFR sections 982.158(d) and 982.404).
Condition: The Commission did not properly enforce consequences to landlords or tenants of units that did not pass inspections in a timely manner.
Questioned costs: Unknown
Context: During our testing of 40 files for HQS enforcement, we noted the following:
- 27 of 40 units tested failed inspection due to owner responsibilities and the Commission never abated HAP.
- 2 of 40 units tested failed due to tenant responsibilities and the Commission did not take proper steps to enforce family obligations.
Cause: HCHC employs a third-party inspection company. Many of the issues caused by the previous inspection company did not surface until early in 2023.
Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP paid.
Repeat finding: Yes, 2022-004
Recommendation: We recommend the Commission review their abatement procedures to ensure that for any unit that has not met the HQS standards that HAP is properly abated as well as review their procedures for enforcing correction of deficiencies to tenants.
Views of responsible officials: There is no disagreement with the audit finding.
2023-001 - Eligibilty
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program: Housing Voucher Cluster
FALN: 14.871/14.879
Federal Awared Identification Number and Year: MD023, 2023
Award Period: 1/1/2023 - 12/31/23
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters
Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516)
Condition: The Commission did not follow it policies and procedures designed to ensure compliance with eligibility requirements.
Questioned costs: Unknown
Context: Testing of 40 HCVP files indicated that 1 file had incorrect income used to calculate tenant rent and HAP.
Cause: The Commission must verify income annually through third party verification and perform a calculation. The Commission did not complete this correctly.
Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP calculations.
Recommendation: We recommend that the Commission review its process for collecting third party income support to ensure the accurate data is used as part of the rent and HAP calculation.
Views of responsible officials: There is no disagreement with the audit finding.
2023-003 - HQS Inspections
Federal Agency: Housing Choice Voucher Program
FALM: 14.871/14.879
Federal Award Identification Number and Year: MD023, 2023
Award Period: 1/1/2023 - 12/31/2023
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion)
Criteria or specific requirement: 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)).
Condition: The Commission did not follow its policies and procedures designed to ensure HQS inspections were performed timely.
Questioned costs: Unknown
Context: During our testing of 60 files over HQS inspections, we noted the following:
- 24 of 60 units tested had an inspection that was not performed on a biennial basis as required per the Commission’s Administrative Plan.
Cause: HCHC employs a third-party inspection company. Many of the issues caused by the previous inspection company did not surface until early in 2023.
Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP calculations.
Repeat finding: Yes, 2022-003
Recommendation: We recommend the Commission review its HQS inspection policies and procedures and discuss these standards with the third-party inspection company that is utilized for these inspections to ensure all inspections are performed timely and that all necessary documentation is maintained for each inspection.
Views of responsible officials: There is no disagreement with the audit finding.
2023-003 - HQS Failed Inspections
Federal Program: Housing Choice Voucher Program
FALN: 14.871/14.879
Federal Award Identification Nuber and Year: MD023,2023
Award Period: 1/1/2023 - 12/31/2023
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion)
Criteria or specific requirement: 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) HAPs beginning no later than the first of the month following the specified incorrect period or must terminate the HAP contract (24 CFR sections 982.158(d) and 982.404).
Condition: The Commission did not properly enforce consequences to landlords or tenants of units that did not pass inspections in a timely manner.
Questioned costs: Unknown
Context: During our testing of 40 files for HQS enforcement, we noted the following:
- 27 of 40 units tested failed inspection due to owner responsibilities and the Commission never abated HAP.
- 2 of 40 units tested failed due to tenant responsibilities and the Commission did not take proper steps to enforce family obligations.
Cause: HCHC employs a third-party inspection company. Many of the issues caused by the previous inspection company did not surface until early in 2023.
Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP paid.
Repeat finding: Yes, 2022-004
Recommendation: We recommend the Commission review their abatement procedures to ensure that for any unit that has not met the HQS standards that HAP is properly abated as well as review their procedures for enforcing correction of deficiencies to tenants.
Views of responsible officials: There is no disagreement with the audit finding.