Finding Text
Questioned Costs None Criteria "The PHA must inspect the unit leased to a family at least bi-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 §§982.405, 983.103). " Condition During our audit, we noted multiple instances where failed HQS inspections did not have the proper support for the failed HQS inspection. Therefore, the Authority falls out of the HQS inspection compliance as noted in the Uniform Guidance Part IV HUD 14.871. Context We selected a sample of 18 out of 175 failed inspections that occurred during the fiscal year. Out of the 18 samples selected, 2 of those lacked the proper documentation of a follow up passed inspection. With an error rate of 11%, the total number of deviations would be 19.4 if the average holds consistent across the population. Cause Controls over compliance associated with the Authority’s grants of federal funds are inadequate. Effect The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. Recommendations We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views Management agrees and has a Corrective Action Plan detailing the course of action to be taken in the next fiscal year.