Finding Text
Finding 2024-003
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Section 8 Housing Choice Vouchers Program
Federal Assistance Listing Numbers: 14.871
Noncompliance – N. Special Tests and Provisions - Housing Quality Standards
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 was a unit that was not inspected within the required biennial period.
Context: Of a sample size of eighteen (18) tenant files, one (1) biennial inspection, was not completed in a timely manner.
Our sample size is statistically valid.
Known Questioned Costs: Amount is below threshold of $25,000. Cause: There is a significant deficiency in internal controls 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 Section 8 Housing Choice Vouchers Program 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 Plan, Uniform Guidance and the compliance supplement.