Finding Text
Finding 2024-023
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.871/14.879 Housing Voucher Cluster
Material Weakness in Internal Controls over Compliance for Special Tests and Provisions – HQS Enforcement
Repeat Finding: Yes; 2023-004
Condition
• For 47 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period.
• For 7 of 60 files tested, the unit failed reinspection and there was no documentation that the unit was properly placed under abatement.
Criteria
When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404).
Questioned Costs
Unknown.
Cause
The Authority did not reinspect or abate units timely.
Effect
The Authority is not in compliance with HQS enforcement requirements.
Recommendation
We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in this report.
Auditor’s Conclusion:
Finding remains as stated.
Finding 2024-024
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.871/14.879 Housing Voucher Cluster
Material Weakness in Internal Controls over Compliance for Special Tests and Provisions - HQS
Repeat Finding: Yes; 2023-005
Condition
• For 8 of the 60 samples, we were unable to view biennial inspections being performed.
Criteria
The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS). The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)).
Questioned Costs
Unknown.
Cause
The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements
Effect
The Authority is not in compliance with federal regulations regarding HQS inspections.
Recommendation
We recommend the Authority implements controls to ensure that HOS inspections are completed in accordance with their administrative plan.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in this report.
Auditor’s Conclusion:
Finding remains as stated.