Finding Text
2023‐001 Direct Program Department of Housing and Urban Development
FFAL #14.871
Section 8 Housing Choice Vouchers
Special Tests and Provisions: HQS Enforcement
Material Noncompliance and Material Weakness in Internal Control over Compliance
Criteria: As a condition of receiving Federal awards, non‐Federal entities agree to comply with laws, regulations, and the provisions of grant agreements and contracts, and to maintain internal controls to provide reasonable assurance of compliance with these requirements.
The Housing Choice Voucher program requires that recipients perform inspections of properties where tenants receiving Housing Assistance Payments reside and when inspections fail, re‐inspections must be performed within 30 days for non‐life‐threatening issues.
Condition: Metro West Housing Solutions did not perform re‐inspections of 16 failed inspections within the prescribed 30‐day HAP requirement during 2023. In addition, HAP was not properly reviewed for possible abatement for these tenants.
Cause: Controls over inspections that are a part of special tests and provisions were not properly designed to ensure that re‐inspections of properties occurred within 30 days of a failed inspection, thus resulting in a deficiency of internal control.
Effect: Metro West Housing Solutions could be issuing HAP for properties that are not up to code or potentially dangerous for their recipients if inspections fail and re‐inspections are not occurring timely. In addition, an abatement of HAP might be missed if the re‐inspections are not occurring timely.
Questioned Costs: None reported
Context/Sampling: We tested 33 out of 161 of the failed inspections during 2023 (20% of the population) based on maximum risk of material noncompliance.
Repeat Finding from Prior Year(s): Yes
Recommendation: We recommend management revisit controls over follow‐up on failed inspections to correct this matter and ensure no further findings occur.
Views of Responsible Officials: There is no disagreement with the audit finding