Audit 392052

Program Name Section 8 Housing Choice Vouchers Internal Control Significant Deficiency N Special Tests ALN(s) 14.871 2025-007 SEMAP Approval Criteria 24 CFR Part 985 Subpart B—Program Operation § 985.101—SEMAP certification. An PHA must submit the HUD required SEMAP certification form within 60 calendar days after the end of its fiscal year. The certification must be approved by PHA board resolution and signed by the PHA executive director. If the PHA is a unit of local government or a state, a resolution approving the certification is not required, and the certification must be executed by the Section 8 program director. Condition During the audit, it was noted that the SEMAP was submitted on time, but the PHA board did not approve the SEMAP via board resolution. Context The PHA board did not approve the SEMAP via board resolution within 60 calendar days after the end of the fiscal year end. Cause The PHA did not know the board resolution was required. Effect The Authority did not follow the federal guidelines relating to SEMAP certification. Recommendations The SEMAP was prepared by the Authority, so just have the board approve the SEMAP via Board Resolution. Questioned Costs None. Management Views Management agrees and has a Corrective Action Plan identifying steps to resolve this finding.

Program Name Section 8 Housing Choice Vouchers ALN(s) 14.871 2025-008 HQS Enforcement Criteria HUD requires that all units under the Housing Choice Vouchers Program meet specific Housing Quality Standards (HQS). In cases of failed inspections, timely re-inspections are mandatory, and if compliance is not achieved, abatement of Housing Assistance Payments (HAP) or voucher cancellation is required. Condition During the audit, it was noted that in three (3) instances, a unit that failed its HQS inspection did not undergo a subsequent re-inspection within the 30 day required window. Context This finding represents a potentially systemic issue within the Housing Voucher Cluster program, as it was identified in three (3) files tested out of a sample of six (6) cases. It highlights a need for more rigorous enforcement and monitoring of HQS compliance. Cause The non-compliance appears to stem from oversight or procedural lapses in the enforcement of HQS within the Housing Voucher Cluster program. This may be due to inadequate training, monitoring, or failure to adhere to established protocols. Effect This non-compliance undermines the integrity of the Housing Choice Vouchers Program and may lead to tenants living in substandard conditions. It also represents a risk of improper use of federal funds and can impact the credibility and effectiveness of the program. Recommendations Implement more stringent procedures for monitoring HQS compliance, including timely reinspection and enforcement of HAP abatement or voucher cancellation. Enhance training for staff involved in the HQS process to ensure a thorough understanding of compliance requirements. Establish a system of regular audits to identify and rectify lapses in HQS enforcement promptly. Questioned Costs The exact monetary impact needs further investigation to determine the amount of HAP that should have been abated for the period of non-compliance. Management Views The auditee acknowledges the deficiency in enforcing Housing Quality Standards (HQS) as highlighted in the finding. In response to this issue, the management commits to implementing a comprehensive Corrective Action Plan.