The County receives certain federal grants as subawards from non-federal entities. Pass-through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows: See footnotes to SEFA for table.
2025-001 – Review and Approval of Housing Quality Standards (HQS) Inspections (Repeat Finding) Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Special Tests and Provisions). Program. Housing Voucher Cluster; Housing Choice Vouchers; U.S. Department of Housing and Urban Development; Assistance Listing Number 14.871; Award Number MI198VO. Criteria. Public Housing Authorities (PHAs) must inspect the unit leased to a family at least annually to determine if the unit meets HQS and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report. Due to Regulation 24 CFR 982.405, 983.103, PHAs have the discretion to conduct unit inspections biennially rather than annually, for the Housing Choice Voucher programs. Condition. HQS inspection reports reviewed during testing did not bear evidence of independent review and approval. Cause. The cause of this condition appears to be a deficiency in the approval process related to HQS inspections. Effect. Because of this condition there was an increased risk that inspection reports could be incomplete or contain inaccuracies. Questioned Costs. As HQS inspections were noted for all 40 items tested, no costs are questioned. Recommendation. The County should implement a policy requiring all HQS inspection reports to have an independent review and that such review be sufficiently documented. View of Responsible Officials. Management concurs with the audit assessment regarding this matter. It should be noted that the HCV program ended as of December 31, 2024.