Finding 1220139 (2025-005)

2025 – 005 Special Tests and Provisions – HQS Enforcement Federal Agency: Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster ALN: 14.871 14.879 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: October 1, 2024 – September 31, 2025 Section III – Findings and Questioned Costs – Major Federal Programs (Continued) 2025 – 005 Special Tests and Provisions – HQS Enforcement (Continued) Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Dallas County must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the Federal award in compliance with federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 24 CFR 982.405(d)(2), when a participant family or government official notifies Dallas County of a potential deficiency, the following conditions apply: Non-Life-Threatening. If the reported deficiency is non-life-threatening, Dallas County must, within 15 days of notification, both inspect the unit and notify the owner if the deficiency is confirmed. The owner must then make the repairs within 30 days of notification from Dallas County or within any approved extension. Condition: Audit procedures included a review of 40 inspections (failed). For 20 out of 40 selected, the owner of the rental unit failed to make the repairs within 30 days of notification from Dallas County. Questioned costs: None. Context: See “Condition.” Cause: Dallas County’s automated system appears to have limitations to flag upcoming or overdue repair deadlines which may result in missed enforcement actions or delayed responses by program staff. In addition, the County has been experiencing staff shortages among inspectors which is limiting Dallas County’s ability to timely track, verify, and enforce repair deadlines, leading to delays in ensuring compliance. Effect: As a result of system limitations and staffing shortages, Dallas County did not timely enforce repair deadlines, leading to noncompliance with federal HQS requirements, increased risk of potential payment of housing assistance for noncompliant units, increased risk to tenant health and safety, and weakened internal controls over program compliance. Repeat Finding: No Recommendation: Dallas County should enhance its internal control processes by improving automated tracking of repair deadlines, strengthening enforcement procedures, addressing staffing limitations, and implementing supervisory review to ensure timely correction of HQS deficiencies and compliance with federal requirements. Views of responsible officials: See corrective action plan.