Finding Text
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: VA001, 2021 Award Period: 1/1/2021-12/31/2021 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) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. 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: Of the 25 tenant files tested: - 4 instances where the reinspection was performed late (after the 30 day or 24 hour required period) - 4 instances where the Authority failed to process abatements of units failed on the second inspection. Questioned costs: $4,309 Context: Of the 25 tenant files tested, 4 files contained exceptions. Those 4 files contained 8 instances of findings. Cause: The Authority failed to implement the internal controls designed to ensure compliance with HQS Enforcement requirements were met. Effect: The Authority is not in compliance with federal regulations regarding HQS inspection requirements determined by HUD. Errors could result in incorrect HAP payments. Recommendation: We recommend the Authority review its controls over HQS inspections and abatements to ensure the controls are properly implemented. Views of responsible officials: There is no disagreement with the audit finding.