Audit 372426

Condition: During our testing of a sample of tenant files, we identified three instances in which biennial inspections were not completed within the required timeframe. Criteria: 24 CFR § 982.405(a) requires PHAs to inspect each unit assisted under the Housing Choice Voucher (HCV) program at least biennially to determine whether the unit meets housing quality standards. Cause: The Commission’s inspection scheduling process is primarily automated through its housing management software, which tracks move-in and inspection dates and generates reminders for the inspector. Because the Commission relies solely on the automated notifications, untimely inspections occurred when the system failed to properly generate or escalate alerts for some tenants. The Commission does not have a process in place to ensure the software system is operating effectively and sending notifications prior to inspection due date. Effect: Failure to complete biennial inspections timely increases the risk that the housing assistance payments may be made for units that do not meet HUD’s housing quality standards. This condition could result in tenants residing in substandard housing and could place the Commission in noncompliance with federal regulations. Context: An initial sample of 40 biennial inspections identified two untimely biennial inspections. We expanded testing to an additional 58 inspections and noted one more exception before discontinuing further testing, as results indicated a consistent pattern. In total, three (3) of 41 inspections tested were not completed timely. The exceptions noted were limited in number and did not indicate a pervasive breakdown of the Commission’s inspection process; however, the results demonstrate that existing controls are not fully effective in ensuring timely completion of all required inspections. Repeat of Prior Year Finding: No Auditor’s Recommendation: We recommend that the Commission implement stronger internal controls and tracking mechanisms to ensure biennial inspections are scheduled and completed on time. This could include the use of automated alerts, improved documentation of rescheduled inspections, and periodic supervisory review of inspection reports to ensure compliance with federal requirements. View of Management: Management agrees with the finding. A response can be found in the Corrective Action Plan.