Audit 375153

2025 – 001 Annual HQS Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Award Period: July 1, 2024, through June 30, 2025 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters 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: During the testing of the HCV program tenant files for HQS, we noted four instances where the HQS inspection was not done within the 24-month regulatory period. Questioned costs: None Context: Out of the 60 files tested, four contained inspection timing errors as noted above. Cause: Out of the 60 files tested, the Authority did not fully meet the timing requirements of the biennial HQS to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: Out of the 60 files tested, the Authority did not meet the HQS timing requirement in compliance with HUD rules and regulations regarding biennial HQS inspections. Repeat finding: Yes. See prior year finding 2024-002. Recommendation: We recommend the housing authority designate an individual to ensure HQS inspections are completed timely. Views of responsible officials: The agency identified the system cause of the late inspections. The issue stemmed from a software system configuration error which prevented certain units from generating in the biennial batch inspection scheduling process.