Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 Award Period: 1/1/2022-12/31/2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or Specific Requirement: Under 24 CFR § 982.158 and 982.405, Public Housing Agencies (PHA) must inspect the unit leased to a family at least 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. In accordance with the Authority's administrative plan, all units must pass an HQS inspection prior to the approval of a lease and at least once every 24 months during the term of the contract and at other times as needed, to determine that the unit meets HQS. Condition: During our testing we noted instances where the Authority did not follow the internal controls in place to ensure that HQS inspections were performed timely. Questioned Costs: None Context: In 3 of the 60 files tested, the Authority did not complete the HQS inspections timely. Cause: The Authority did not consistently complete Housing Quality Standards (HQS) inspections within the required timeframes due to operational challenges experienced during the COVID-19 public health emergency and the implementation of a new housing management software system. Staffing adjustments, remote operations, increased administrative workload, and the transition to a new software platform affected the Authority's ability to effectively monitor inspection schedules and ensure all required inspections were completed timely. Although management implemented procedures to continue serving participants and maintain housing stability during this period, those procedures were not sufficient to prevent delays in all instances. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: No Recommendation: We recommend that the Authority review their process for scheduling HQS inspections to ensure that they are done timely. Views of Responsible Officials: The Authority concurs with this finding and acknowledges that certain HQS inspections were not completed within the required timeframes. During the audit period, the Authority faced significant operational challenges resulting from the COVID-19 public health emergency, including remote operations, increased administrative demands, and the implementation of a new housing management software system. These factors affected the Authority's ability to consistently monitor inspection schedules and complete all required inspections on time. Throughout this period, the Authority prioritized maintaining housing assistance for eligible families while continuing to operate under evolving federal guidance issued in response to the pandemic. Although these circumstances contributed to the delays, the Authority recognizes its responsibility to maintain compliance with HUD inspection requirements. Management has reviewed its inspection scheduling and monitoring procedures and has implemented additional controls within its current software system to better track inspection due dates and ensure timely completion of HQS inspections. The Authority is committed to strengthening its internal processes, improving oversight, and maintaining compliance with HUD requirements going forward.