Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871/14.879/14.EHV
Federal Award Identification Number and Year: VA901; 2023-2024
Award Period: July 1, 2023 through June 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Per the Authority’s administrative plan, units sampled for quality control inspections must only include units that have been inspected within the preceding 3 months.
Condition/Context: During our testing of 31 files for Quality-Control Inspection requirements, we noted the following in 2 files:
- 2 of 31 inspections tested were performed more than 3 months after the initial inspection.
The samples were statistically valid samples.
Questioned costs: None
Cause: As a balance of state PHA, the Authority is responsible for ensuring the Housing Choice Voucher (HCV) program is administered in compliance with Federal regulations across Virginia. The Authority has partnered with 26 local housing agencies (LHAs) throughout the state to administer the program. However, due to the number of LHAs, inconsistencies in quality control practices have emerged. These variations result from differences in agency size, staffing structures, geographic service areas, and overall program capacity. The Authority has been actively working to improve the HCV program by taking a methodical approach, making intentional decisions about program enhancements while balancing the need for swift compliance with federal regulations.
One significant challenge identified by LHAs is the capacity to conduct inspections, particularly for agencies located in rural areas, where coordinating all required inspections remained difficult.
Effect: The Authority is not in compliance with their Administrative Plan.
Repeat Finding: This finding is a repeat finding in the immediate prior year. Prior year finding number was 2023-003.
Recommendation: We recommend that the Authority review its process over quality-control inspections to ensure they are completed timely.
Views of responsible officials: There is no disagreement with the audit finding.