Finding Text
Finding 2024-002
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers, Mainstream Vouchers and Emergency Housing Vouchers Programs
Federal Assistance Listing Number: 14.871, 14.879 and 14.EHV
Material Noncompliance – N. Special Tests and Provisions – Housing Quality Standards Inspections Non Compliance Material to the Financial Statements: No
Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions
Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the 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)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days.
Condition: Based upon inspection of the Authority’s files and on discussion with management, there were units that were not inspected within the biennial inspection period of two (2) years. Additionally, there were units that failed inspections that did not pass reinspection within 30 days without penalty.
Context: There are approximately seven hundred and sixty six (766) Housing Voucher Cluster units. Of a sample size of eighteen files, one (1) biennial inspection, was not completed in a timely manner. Additionally, there are approximately ninety three (93) units with failed inspections. Of a sample size of ten (10) failed inspections, six (6) did not pass reinspection within 30 days. Housing assistance payments were not abated nor were the tenants relocated. Our sample size is statistically valid. Known Questioned Costs: $ 18,100 Cause: There is a significant deficiency in internal controls for the Housing Voucher Cluster over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed biennial HQS inspections in compliance with program requirements.
Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of
compliance related to HQS inspections.
Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.