Finding Text
Federal Program Titles: Section 8 Housing Choice Vouchers Program
Federal Assistance Listing Numbers: 14.871
Noncompliance – N. Special Tests and Provisions– Housing Quality Standards Inspections
Non Compliance Material to the Financial Statements: Yes
Material Weakness in Internal Control over Compliance for Special Tests and Provisions– Housing Quality Standards Inspections
Criteria: The Authority must inspect the unit leased to a family annually to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)).
Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 318 units. Of a sample size of fourteen (14) tenant files, two (2) files did not contain annual inspection reports per HQS compliance requirements. Our sample size is statistically valid. Known Questioned Costs: $33,504. Cause: There is a material weakness in internal controls over the compliance for HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance.
Effect: The Section 8 Housing Choice Vouchers Program is in material non-compliance with the Special Tests and Provisions - HQS Inspections type of compliance related to the program.
Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.
Authority Response: The Authority accepts the recommendation of the auditor, and will implement internal control procedures that will ensure compliance with the Uniform Guidance.