Finding Text
Finding 2023-002:
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: - Section 8 Housing Choice Vouchers
- Emergency Housing Vouchers Assistance Listing Numbers: 14.871, 14.EHV
Noncompliance – N. Special Tests and Provisions - Housing Quality Standards
Non Compliance Material to the Financial Statements: Yes
Material Weakness in Internal Control over Compliance for Special Tests and Provisions
Criteria: HQS Inspections. Per the Authority's HCV Admin Plan, the PHA must inspect the unit leased to a family biennially in order to determine if the unit meets HQS standards, 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)). These inspection reports are required to be maintained and available for examination at the time of audit.
Condition: Based upon inspection of the Authority’s files and on discussion with management there were inspection reports that were unavailable for examination at the time of audit.
Context: Of a sample size of forty-four (44) units, twelve (12) units did not have biennial HQS inspections performed timely.
Our sample size is statistically valid.
Known Questioned Costs: - 14.871 - Section 8 Housing Choice Vouchers - $246,504
- 14.EHV - Emergency Housing Vouchers - $30,252 Finding 2023-002: (continued)
Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance.
Effect: The Section 8 Housing Choice Vouchers and Emergency Housing Vouchers programs are in material non-compliance with the 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.
Views of responsible officials and planned corrective action: The Authority has recognized the material weakness in the Section 8 Housing Choice Vouchers and Emergency Housing Vouchers programs and will implement internal control procedures that will ensure compliance with federal regulations.