Finding 1081766 (2024-002)

2024-002 Housing Quality Standards Inspection/HQS Enforcement Significant Deficiency Special Test & Provisions (N) Criteria: "The PHA must inspect the unit leased to a family at least bi-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 (24CRF §§982.405, 983.103). " Condition: The above requirements were not met for the 2023 audit. Context: During our audit we selected 40 tenants to make sure that an HQS inspection was completed at least bi-annually, we noted 6 out of the 40 tenants did not have support for an HQS inspection. Cause: Controls over compliance associated with the Authority’s grants of federal funds are inadequate. Effect: The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. Recommendations: We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views: See Management's Corrective Action plan.