Finding Text
Finding Reference: 2023-001
Federal Agency: US. Department of Housing and Urban Development
Federal Program(s): Section 8 Housing Choice Vouchers
ALN: 14.871
Category of Finding: Special Tests and Provisions (N)
Type of Finding: Noncompliance; Significant Deficiency
CONDITION: Based upon inspection of the PHA’s files and on discussions with management, the PHA failed to document biannual Housing Quality Standards (HQS) inspections for two units in accordance with the PHA’s Administrative Plan and HUD regulations.
CRITERIA: PHAs are required to inspect units leased to Housing Choice Voucher program participants at least biannually and prepare unit inspection reports in accordance with 21 CFR 982.158(d).
QUESTIONED
COSTS: The amount of questioned costs could not be determined.
CONTEXT: During audit fieldwork, 40 HAP contract files from a statistically valid sample were examined for compliance with annual HQS inspection requirements. Of the files examined, 2 files did not contain current biannual inspection reports.
EFFECT: The Authority is not in compliance with federal regulations regarding HQS inspections and documentation. This could result in unallowable HAP payments to owners of units that do not meet required Housing Quality Standards.
CAUSE: The overall cause was a lack of management oversight and quality control over this program.
RECOMMENDATION: We recommend the PHA design and implement a corrective action plan that will assure compliance with the Uniform Guidance and the compliance supplement.
MANAGEMENT’S
RESPONSE See separately prepared Corrective Action Plan.