Finding Text
Housing Voucher Cluster - HQS Biennial Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879/14.EHV Federal Award Identification Number and Year: VA003, 2023-2024 Award Period: July 1, 2023 – December 31, 2024 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must inspect the unit leased to a family at least biennially 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: During our testing, we noted the Authority did not have adequate internal controls designed to ensure compliance over HQS inspections requirements was met. Context: During our testing of 60 units for biennial HQS requirements, we noted the following: - 18 of 60 units tested did not have documentation of a completed HQS inspection within 24 months of the effective date. - 36 of 60 units tested did not have inspections performed on a biennial basis. - 1 of 60 inspections tested did not have an inspection report that was signed off as completed by the inspector. Questioned costs: Unable to determine 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 regarding HQS inspections. Repeat Finding: Yes, 2023-004. Recommendation: We recommend the Authority review their inspection process to ensure that inspections are performed timely and that all documentation is maintained within Yardi or the tenant file. We recommend the Authority hiring additional inspectors or a third-party company to perform inspections to ensure compliance. Views of responsible officials: There is no disagreement with the audit finding.