Finding Text
2023 – 006: Annual Inspections
Federal agency: U.S. Department of Housing and Urban Development
Federal program title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871, 14.879
Award period: January 1, 2023 – December 31, 2023
Type of Finding:
• Internal Control, 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 annually 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: During our testing, we noted the Authority failed to comply with the requirements of the annual HQS inspection as stated in the criteria section of this finding.
Questioned Costs: Known - None | Likely - Undeterminable
Context: From a sample of sixty (60) program participant files selected for testing, two (2) instances noted where the repairs were not completed timely in accordance with the stated criteria and the HAP was not held. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding.
Effect: The failure of the internal controls has resulted in noncompliance with the stated criteria.
Repeat Finding: Yes; 2022-005
Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria.
Views of responsible officials: There is no disagreement with the audit finding.