Finding 1118254 (2024-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-31

AI Summary

  • Core Issue: The Authority failed to conduct required Housing Quality Standards (HQS) inspections on time for 7 out of 40 sampled units.
  • Impacted Requirements: Compliance with annual HQS inspection requirements as outlined in 24 CFR sections 982.405(a) and 982.405(b).
  • Recommended Follow-Up: Implement controls to ensure timely completion of HQS inspections to avoid repeat findings.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879Federal Award Identification Number and Year: SC911VO - 2024 Award Period: July 1, 2023 – June 30, 2024 Compliance Requirement: Special Tests and Provisions – Housing Quality Standards (HQS) Inspections Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The South Carolina State Housing Finance and Development Authority (the Authority) must inspect a unit leased to a family at least annually to determine if the unit meets HQS (24 CFR sections 982.405(a) and 982.405(b)). Condition: The Authority did not perform HQS inspections in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 units found that 7 units that were not inspected timely. Cause: HQS inspections were not completed within the required timeframe for 7 units. Effect: The Authority is not in compliance with HQS inspection requirements. Repeat Finding: Yes, see finding 2023-002. Recommendation: We recommend the Authority implements controls to ensure that required HQS are completed timely. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Special Tests & Provisions Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 541812 2024-002
    Material Weakness Repeat
  • 541813 2024-002
    Material Weakness Repeat
  • 541814 2024-002
    Material Weakness Repeat
  • 541815 2024-003
    Material Weakness Repeat
  • 541816 2024-003
    Material Weakness Repeat
  • 541817 2024-003
    Material Weakness Repeat
  • 541818 2024-004
    Significant Deficiency Repeat
  • 541819 2024-004
    Significant Deficiency Repeat
  • 541820 2024-004
    Significant Deficiency Repeat
  • 541821 2024-005
    Significant Deficiency Repeat
  • 541822 2024-005
    Significant Deficiency Repeat
  • 541823 2024-005
    Significant Deficiency Repeat
  • 1118255 2024-002
    Material Weakness Repeat
  • 1118256 2024-002
    Material Weakness Repeat
  • 1118257 2024-003
    Material Weakness Repeat
  • 1118258 2024-003
    Material Weakness Repeat
  • 1118259 2024-003
    Material Weakness Repeat
  • 1118260 2024-004
    Significant Deficiency Repeat
  • 1118261 2024-004
    Significant Deficiency Repeat
  • 1118262 2024-004
    Significant Deficiency Repeat
  • 1118263 2024-005
    Significant Deficiency Repeat
  • 1118264 2024-005
    Significant Deficiency Repeat
  • 1118265 2024-005
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.195 Project-Based Rental Assistance (pbra) $164.29M
14.239 Home Investment Partnerships Program $93.81M
14.275 Housing Trust Fund $8.84M
21.023 Emergency Rental Assistance Program $6.50M
21.026 Homeowner Assistance Fund $4.56M
14.871 Section 8 Housing Choice Vouchers $2.90M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $981,190
14.879 Mainstream Vouchers $450,646