Finding 1074347 (2023-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-09-23

AI Summary

  • Core Issue: The Commission failed to conduct timely Housing Quality Standards (HQS) inspections, violating federal requirements.
  • Impacted Requirements: Biennial inspections and quality control re-inspections were not performed as mandated by HUD regulations.
  • Recommended Follow-Up: Review and improve HQS inspection policies, and ensure the third-party inspection company adheres to timely inspection protocols.

Finding Text

2023-003 - HQS Inspections Federal Agency: Housing Choice Voucher Program FALM: 14.871/14.879 Federal Award Identification Number and Year: MD023, 2023 Award Period: 1/1/2023 - 12/31/2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion) 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) and the PHA 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: The Commission did not follow its policies and procedures designed to ensure HQS inspections were performed timely. Questioned costs: Unknown Context: During our testing of 60 files over HQS inspections, we noted the following: - 24 of 60 units tested had an inspection that was not performed on a biennial basis as required per the Commission’s Administrative Plan. Cause: HCHC employs a third-party inspection company. Many of the issues caused by the previous inspection company did not surface until early in 2023. Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP calculations. Repeat finding: Yes, 2022-003 Recommendation: We recommend the Commission review its HQS inspection policies and procedures and discuss these standards with the third-party inspection company that is utilized for these inspections to ensure all inspections are performed timely and that all necessary documentation is maintained for each inspection. Views of responsible officials: There is no disagreement with the audit finding.

Categories

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 497904 2023-001
    Significant Deficiency
  • 497905 2023-002
    Material Weakness Repeat
  • 497906 2023-003
    Material Weakness Repeat
  • 497907 2023-001
    Significant Deficiency
  • 497908 2023-002
    Material Weakness Repeat
  • 497909 2023-003
    Material Weakness Repeat
  • 1074346 2023-001
    Significant Deficiency
  • 1074348 2023-003
    Material Weakness Repeat
  • 1074349 2023-001
    Significant Deficiency
  • 1074350 2023-002
    Material Weakness Repeat
  • 1074351 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $26.23M
14.879 Mainstream Vouchers $1.40M
14.218 Community Development Block Grants/entitlement Grants $361,341
14.241 Housing Opportunities for Persons with Aids $229,967
21.023 Emergency Rental Assistance Program $96,322
14.896 Family Self-Sufficiency Program $6,011