Audit 385109

Finding 2025-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program Assisted Listing Number: 14.881 Noncompliance – N. Special Tests and Provisions – Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Housing Quality Standards. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the Housing Quality Standards and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.401 through 982.405). For units that fail inspection the PHA must correct all life threatening Housing Quality Standards 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 with failed inspections that did not pass reinspection within 30 days without penalty. Context: There are approximately one hundred fifty five (155) units with failed inspections. Of a sample size of sixteen (16) failed inspections, one (1) unit did not pass reinspection within 30 days. Housing assistance payments were not abated nor were the tenants relocated in a timely manner. Our sample size is statistically valid. Known Questioned Costs: Amount is below threshold of $25,000. Cause: There is a significant deficiency in internal controls for the Moving to Work Demonstration Program over the compliance for the special tests and provisions type of compliance related to Housing Quality Standards. Effect: The Moving to Work Demonstration Program is in non-compliance with the reporting type of compliance related to Housing Quality Standards. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.