Finding Text
PBRA/MOD Housing Quality StandardsFederal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 8 Project-Based Cluster Assistance Listing Number: 14.195/14.856 Federal Award Identification Number and Year: MD004 (various funding increments active during period 7/1/24 - 6/30/25) Award Period: July 1, 2024 through June 30, 2025 Type of Finding: - Material Weakness in Internal Control over Compliance. - Material Noncompliance (Modified Opinion) Criteria: PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS). The PHA must prepare a unit inspection report (24 CFR sections 880.612, 881.601, 882.516, 882.808(n), 883.701, 884.217, 886.123, and 886.323).). Condition: During our testing, we noted the Commission did not have adequate internal controls designed to ensure that inspection requirements were being met. As a result, inspections were not completed timely or at all. Questioned costs: $ 75,780 Context: Testing of 60 PBRA tenant files for annual inspection standards revealed the following exceptions: - 23 instances where tenant files were missing one or more inspections and when inspections were included, it was indeterminable whether they were within the regulatory period - 2 files were missing the Housing Specialist signoff on the inspection completed. Cause: The Commission does not have controls in place to ensure it is meeting HQS inspection requirements set by HUD. Effect: The Commission is not in compliance with program requirements over HQS inspections. Repeat Finding: Yes Recommendation: The Commission should implement processes to ensure that all proper documentation is being maintained for inspections of tenant residences and that related inspections are performed on a timely basis. View of Responsible Officials: There is no disagreement with the audit finding