Finding Text
HVC HQS Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: NE 001; 2024 Award Period: January 1, 2024 – December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 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)). Condition: Out of 40 tenant files tested for annual HQS inspections, 6 tenant files contained exceptions. Questioned costs: None Context: During the testing of 40 tenant files for annual HQS inspections, there were 6 instances where the unit was not inspected on an annual basis Cause: The Authority failed to implement internal controls designed to ensure the units are inspected annually. Effect: The Authority is not in compliance with federal regulations regarding HQS inspection requirements determined by HUD. Repeat Finding: No Recommendation: We recommend the Authority implement controls to ensure that all units are inspected annually. We recommend the Authority hire an outside firm to perform inspections if there is not capacity internally. Views of responsible officials: There is no disagreement with the audit finding.