Finding 2024-002
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers, Mainstream Vouchers and Emergency Housing Vouchers Programs
Federal Assistance Listing Number: 14.871, 14.879 and 14.EHV
Material Noncompliance – N. Special Tests and Provisions – Housing Quality Standards Inspections Non Compliance Material to the Financial Statements: No
Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions
Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the 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)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days.
Condition: Based upon inspection of the Authority’s files and on discussion with management, there were units that were not inspected within the biennial inspection period of two (2) years. Additionally, there were units that failed inspections that did not pass reinspection within 30 days without penalty.
Context: There are approximately seven hundred and sixty six (766) Housing Voucher Cluster units. Of a sample size of eighteen files, one (1) biennial inspection, was not completed in a timely manner. Additionally, there are approximately ninety three (93) units with failed inspections. Of a sample size of ten (10) failed inspections, six (6) did not pass reinspection within 30 days. Housing assistance payments were not abated nor were the tenants relocated. Our sample size is statistically valid. Known Questioned Costs: $ 18,100 Cause: There is a significant deficiency in internal controls for the Housing Voucher Cluster over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed biennial HQS inspections in compliance with program requirements.
Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of
compliance related to HQS inspections.
Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Finding 2024-003
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers, Mainstream Vouchers and Emergency Housing Vouchers Programs
Federal Assistance Listing Number: 14.871, 14.879 and 14.EHV
Noncompliance – N. Special Tests and Provisions – Reasonable Rent
Non Compliance Material to the Financial Statements: No
Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions
Criteria: Reasonable Rent. The Authority must do the following: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the Authority must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract)(24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507).
Condition: Based upon inspection of the Authority’s files and on discussion with management, there were newly leased units for which rent reasonablness evaluations were not performed.
Context: There were approximately one hundred and forty three (143) newly leased Housing Voucher Cluster units. Of a sample size of fifteen (15) newly leased units, rent reasonableness evaluations for five (5) units were not performed. Our sample size is statistically valid. Known Questioned Costs: $ 34,257 Cause: There is a significant deficiency for the Housing Voucher Cluster in internal controls over the compliance for the special tests and provisions type of compliance related to reasonable rent. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the programs are in compliance.
Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of
compliance related to reasonable rent.
Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.
Finding 2024-002
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers, Mainstream Vouchers and Emergency Housing Vouchers Programs
Federal Assistance Listing Number: 14.871, 14.879 and 14.EHV
Material Noncompliance – N. Special Tests and Provisions – Housing Quality Standards Inspections Non Compliance Material to the Financial Statements: No
Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions
Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the 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)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days.
Condition: Based upon inspection of the Authority’s files and on discussion with management, there were units that were not inspected within the biennial inspection period of two (2) years. Additionally, there were units that failed inspections that did not pass reinspection within 30 days without penalty.
Context: There are approximately seven hundred and sixty six (766) Housing Voucher Cluster units. Of a sample size of eighteen files, one (1) biennial inspection, was not completed in a timely manner. Additionally, there are approximately ninety three (93) units with failed inspections. Of a sample size of ten (10) failed inspections, six (6) did not pass reinspection within 30 days. Housing assistance payments were not abated nor were the tenants relocated. Our sample size is statistically valid. Known Questioned Costs: $ 18,100 Cause: There is a significant deficiency in internal controls for the Housing Voucher Cluster over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed biennial HQS inspections in compliance with program requirements.
Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of
compliance related to HQS inspections.
Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Finding 2024-003
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers, Mainstream Vouchers and Emergency Housing Vouchers Programs
Federal Assistance Listing Number: 14.871, 14.879 and 14.EHV
Noncompliance – N. Special Tests and Provisions – Reasonable Rent
Non Compliance Material to the Financial Statements: No
Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions
Criteria: Reasonable Rent. The Authority must do the following: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the Authority must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract)(24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507).
Condition: Based upon inspection of the Authority’s files and on discussion with management, there were newly leased units for which rent reasonablness evaluations were not performed.
Context: There were approximately one hundred and forty three (143) newly leased Housing Voucher Cluster units. Of a sample size of fifteen (15) newly leased units, rent reasonableness evaluations for five (5) units were not performed. Our sample size is statistically valid. Known Questioned Costs: $ 34,257 Cause: There is a significant deficiency for the Housing Voucher Cluster in internal controls over the compliance for the special tests and provisions type of compliance related to reasonable rent. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the programs are in compliance.
Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of
compliance related to reasonable rent.
Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.
Finding 2024-002
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers, Mainstream Vouchers and Emergency Housing Vouchers Programs
Federal Assistance Listing Number: 14.871, 14.879 and 14.EHV
Material Noncompliance – N. Special Tests and Provisions – Housing Quality Standards Inspections Non Compliance Material to the Financial Statements: No
Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions
Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the 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)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days.
Condition: Based upon inspection of the Authority’s files and on discussion with management, there were units that were not inspected within the biennial inspection period of two (2) years. Additionally, there were units that failed inspections that did not pass reinspection within 30 days without penalty.
Context: There are approximately seven hundred and sixty six (766) Housing Voucher Cluster units. Of a sample size of eighteen files, one (1) biennial inspection, was not completed in a timely manner. Additionally, there are approximately ninety three (93) units with failed inspections. Of a sample size of ten (10) failed inspections, six (6) did not pass reinspection within 30 days. Housing assistance payments were not abated nor were the tenants relocated. Our sample size is statistically valid. Known Questioned Costs: $ 18,100 Cause: There is a significant deficiency in internal controls for the Housing Voucher Cluster over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed biennial HQS inspections in compliance with program requirements.
Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of
compliance related to HQS inspections.
Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Finding 2024-003
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers, Mainstream Vouchers and Emergency Housing Vouchers Programs
Federal Assistance Listing Number: 14.871, 14.879 and 14.EHV
Noncompliance – N. Special Tests and Provisions – Reasonable Rent
Non Compliance Material to the Financial Statements: No
Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions
Criteria: Reasonable Rent. The Authority must do the following: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the Authority must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract)(24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507).
Condition: Based upon inspection of the Authority’s files and on discussion with management, there were newly leased units for which rent reasonablness evaluations were not performed.
Context: There were approximately one hundred and forty three (143) newly leased Housing Voucher Cluster units. Of a sample size of fifteen (15) newly leased units, rent reasonableness evaluations for five (5) units were not performed. Our sample size is statistically valid. Known Questioned Costs: $ 34,257 Cause: There is a significant deficiency for the Housing Voucher Cluster in internal controls over the compliance for the special tests and provisions type of compliance related to reasonable rent. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the programs are in compliance.
Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of
compliance related to reasonable rent.
Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.
Finding 2024-002
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers, Mainstream Vouchers and Emergency Housing Vouchers Programs
Federal Assistance Listing Number: 14.871, 14.879 and 14.EHV
Material Noncompliance – N. Special Tests and Provisions – Housing Quality Standards Inspections Non Compliance Material to the Financial Statements: No
Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions
Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the 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)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days.
Condition: Based upon inspection of the Authority’s files and on discussion with management, there were units that were not inspected within the biennial inspection period of two (2) years. Additionally, there were units that failed inspections that did not pass reinspection within 30 days without penalty.
Context: There are approximately seven hundred and sixty six (766) Housing Voucher Cluster units. Of a sample size of eighteen files, one (1) biennial inspection, was not completed in a timely manner. Additionally, there are approximately ninety three (93) units with failed inspections. Of a sample size of ten (10) failed inspections, six (6) did not pass reinspection within 30 days. Housing assistance payments were not abated nor were the tenants relocated. Our sample size is statistically valid. Known Questioned Costs: $ 18,100 Cause: There is a significant deficiency in internal controls for the Housing Voucher Cluster over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed biennial HQS inspections in compliance with program requirements.
Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of
compliance related to HQS inspections.
Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Finding 2024-003
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers, Mainstream Vouchers and Emergency Housing Vouchers Programs
Federal Assistance Listing Number: 14.871, 14.879 and 14.EHV
Noncompliance – N. Special Tests and Provisions – Reasonable Rent
Non Compliance Material to the Financial Statements: No
Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions
Criteria: Reasonable Rent. The Authority must do the following: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the Authority must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract)(24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507).
Condition: Based upon inspection of the Authority’s files and on discussion with management, there were newly leased units for which rent reasonablness evaluations were not performed.
Context: There were approximately one hundred and forty three (143) newly leased Housing Voucher Cluster units. Of a sample size of fifteen (15) newly leased units, rent reasonableness evaluations for five (5) units were not performed. Our sample size is statistically valid. Known Questioned Costs: $ 34,257 Cause: There is a significant deficiency for the Housing Voucher Cluster in internal controls over the compliance for the special tests and provisions type of compliance related to reasonable rent. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the programs are in compliance.
Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of
compliance related to reasonable rent.
Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.