Finding Text
Finding Reference: 2024-003
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Grant Number: Not Applicable
Category of Finding: Special Tests and Provisions (Housing Quality Standards Inspections)
Classification of Finding: Significant Deficiency in Internal Control over Compliance
Instance of Noncompliance
Criteria
Pursuant to 24 CFR 982.158 and 982.405, the Authority must inspect the units leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and must also conduct quality control re-inspections. The PHA must prepare and maintain a unit inspection report for at least three years.
Condition
From a total population of 16,907 tenants for the fiscal year ended September 30, 2024, we selected a statistically valid sample of one monthly subsidy payment for each of 60 selected tenants and identified five tenants whose HQS inspections were not completed within the required due dates prior to the subsidy payments.
Cause of Condition
The Authority’s internal control procedures were not sufficient to ensure that all HQS inspections were completed within the specified due dates and that all related inspection records are properly filed.
Effect
The Authority is not in compliance with the HQS inspection requirements. The Authority may be paying Housing Assistance Payments (HAPs) to property owners whose units have inadequate housing quality.
Questioned Costs
The units were ultimately inspected and determined to be compliant with the Housing Quality Standards. Questioned costs were not identified.
Identification of Repeat Finding
This is a repeat of finding 2023-002 reported for the year ended September 30, 2023.
Recommendation
The Authority should revisit its procedures, systems and controls to ensure the required HQS inspections are completed in a timely manner, and to strengthen its record retention and filing systems.
View of Responsible Officials and Planned Corrective Action
See separately prepared Corrective Action Plan.