Finding Text
2024 – 002 – Housing Voucher Cluster – HQS Enforcement - Failed Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Federal Award Identification Number and Year: VA003, 2023-2024 Assistance Listing Number: 14.871/14.879/14.EHV Award Period: July 1, 2023 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAP's beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure compliance over HQS enforcement requirements was met. Context: During our testing of 15 failed HQS inspections, we noted 1 instance where HAP was not abated and the tenant did not change units. There was no documentation that the unit ever passed inspection. Additionally, we noted there only 94 failed inspections per the population received. Questioned costs: $5,915 Cause: The staff performing the inspections did not properly use the Yardi software program available to conduct and document the inspection process. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes, 2023-004. Recommendation: We recommend the Authority review their failed inspection process to ensure that any abatement/contract modifications are performed timely and in accordance with the compliance requirements. We recommend that the Authority utilize Yardi software to its full potential in terms of inspection documentation. Views of responsible officials: There is no disagreement with the audit finding.