Finding 1146137 (2024-005)

2024-005 ALN 14.871 – Housing Voucher Cluster – Special Tests – HQS Enforcement Condition and Criteria: The PHA must inspect the unit leased to a family at least annually to determine if the unit meets 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)). During testing, it was noted that the Authority did not have adequate internal controls designed to ensure compliance with failed HQS inspection requirements. Amount of Questioned Costs: None Context: During testing of a sample of 40 units for HQS enforcement, it was noted that 6 files did not comply with compliance requirements. These tenants who failed inspections were missing HUD-52580-A inspection forms. We were unable to obtain sufficient evidence that these failed HQS inspections were followed up with a reinspection within the allowed numbers of days or that the HQS inspection had finally passed at some point. Therefore, we were unable to determine if the Authority took proper steps to abate Housing Assistance Payments or enforce family obligations when appropriate. Cause: The Authority did not sufficiently monitor staff and internal controls to ensure compliance with HQS inspection requirements. The Authority was transitioning to a new data collection system and during this period of transition, inspections were written down on the back of letters & previous inspection reports. The actual prescribed HUD inspection form did not exist for these failed inspections. Effect: The Authority is not in compliance with federal regulations regarding HQS inspections. Auditor’s Recommendation: We recommend that management review their controls for conducting HQS inspections and ensure compliance standards are met. We also recommend that staff receive appropriate training to be able to navigate the new software system properly. Lastly, we recommend that the Authority contacts the software vendor or IT service to resolve any remaining issues with the software system. Grantee Response: The Chief Executive Officer agrees with the finding and will follow the Auditor's recommendation.