Audit 412003

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: NH010-2025 Award Period: January 1, 2025 – December 31, 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). The PHA must prepare a unit inspection report (24 CFR section 982.405(b)). Condition: In 2 out of the 25 samples selected, inspections were not performed timely. Questioned costs: None identified. The Authority did not complete the annual HQS inspection within the required timeframe for the unit tested. While this represents noncompliance with program requirements, we did not perform procedures to determine whether the unit failed to meet HQS. As a result, we did not determine whether HAP payments made during the period of noncompliance were unallowable. Accordingly, questioned costs could not be determined. Context: Adequate documentation was not maintained to support late inspections for 2 out of 25 sampled units. Cause: Procedures are not in place for the Authority to ensure that the Authority is performing inspections in compliance with their policies and federal requirements. Adequate documentation regarding inspection extensions has not been maintained. Effect: The Authority is not in compliance with program requirements over HQS inspections. Repeat Finding: No Recommendation: The Authority should implement a process and control to ensure that all proper documentation is being maintained for HQS inspections. Views of responsible officials: There is no disagreement with the audit finding.