Audit 406999

Compliance- 2025-002 Lack of Documentation for Annual Housing Quality Standards Inspections Federal Program: Low-Income Housing Assistance Program Federal Agency: United States Department of Housing and Urban Development Assistance Listing Number: 14.871 Questioned Costs: Unknown Criteria - In accordance with 2 CFR Part 200 (Uniform Guidance), the Police Jury is required to maintain records sufficient to demonstrate compliance with federal program requirements. Additionally, Housing Quality Standards regulations require annual inspections of assisted units to ensure that housing continues to meet minimum health and safety standards. Condition - During our review of tenant files, we noted that documentation supporting the completion of required annual Housing Quality Standards (HQS) inspections was not maintained in several files tested. As a result, we were unable to determine whether annual inspections were performed in accordance with program requirements. Cause - The program did not maintain adequate document retention and monitoring procedures to ensure annual inspection reports and supporting documentation were consistently retained in tenant files. Effect - Failure to maintain documentation of annual HQS inspections limits the ability to demonstrate compliance with federal housing requirements and increases the risk that units may not meet required health and safety standards. However, based on the audit procedures performed, no questioned costs were identified. Recommendation - We recommend management strengthen controls over tenant file documentation by implementing procedures to 1) ensure annual HQS inspections are completed and properly documented; 2) maintain inspection reports and related documentation in each tenant file; 3) conduct periodic supervisory reviews of tenant files for completeness; and 4) implement tracking procedures for upcoming and completed annual inspections.