Section 8 Housing Choice Vouchers AL #14.871 Material Weakness Internal Control Over Compliance Lack of Timely Abatement of Housing Assistance Payments for Failed Inspections 2022-001 Condition: During audit fieldwork and at the time the Comission was preparing the SEMAP Certification, we identifi...
Section 8 Housing Choice Vouchers AL #14.871 Material Weakness Internal Control Over Compliance Lack of Timely Abatement of Housing Assistance Payments for Failed Inspections 2022-001 Condition: During audit fieldwork and at the time the Comission was preparing the SEMAP Certification, we identified that the Commission did not reinspect units with failed inspections within 30 calendar days. In addition, the Commission did not abate Housing Assistance Payments (HAP) timely. Criteria: Re-inspections should be performed by an inspector within 30 calendar days of the initial failed inspection. HAP should be abated in instances where the owner or family failed to correct the HQS deficiencies within the required timeframe Repeat of Prior Year Finding: No Auditor?s Recommendation: The Commission should provide training for the inspector on Housing Quality Standards, the timeframes for correcting cited deficiencies, and logging the information within the compliance software. We recommend the Commission implement a system to ensure re-inspections are scheduled within 30 calendar days following a failed inspection. In addition, we recommend establishing a process for monitoring when HQS deficiencies are not corrected and when the Commission should abate HAP or terminate the HAP contract. Management?s Response: In completing the first SEMAP certification following the start of the COVID-19 pandemic, it was recognized that there was a slight deficiency in the overall compliance requirements concerning Housing Quality Standards (HQS). This deficiency was attributed to the following three factors: 1. There was an increase in the volume of HQS inspections completed during the fiscal year. We were catching up following COVID-19. 2. The sole housing authority?s inspector was inexperienced and untrained. Specifically, he was only hired in February 2021 to complete HQS inspections following the retirement of a long-term employee. 3. The HQS process did not receive the required supervision to maintain compliance. To correct the deficiency with HQS, the Commission addressed the underlying factors which led to the deficiency: 1. A level of normalization has been achieved in units needing HQS inspections following December 2021. 2. The inspector has received formal training from a reputable third-party vendor on the requirements of the HQS process. 3. Supervision of the Section 8 Program has been changed in February 2022, and systems and reports have been put in place to better monitor the program including HQS.