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: OR005 – 2025 Award Period: January 1, 2025 – December 31, 2025 Compliance Requirement: Special Tests and Provisions – Quality Control Re-inspections (QC) Type of Finding: • Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Criteria or Specific Requirement: According to the OMB Compliance Supplement for HCVP program. "The PHA must inspect the unit leased to a family at least biennially 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 sections 982.158(d) and 982.405(b))." Condition: The Authority did not perform QC inspections in accordance with program compliance requirements. Context: During our discussions with management, it was determined that no quality control reinspections were performed during the fiscal year. Questioned costs: None Cause: The Authority did not perform QC inspections during the fiscal year. Effect: The Authority is not in compliance with program requirements over QC inspections. Repeat Finding: No Recommendation: We recommend that the Authority implement internal controls to ensure that required quality control re-inspections are completed on an annual basis. Views of responsible officials: There is no disagreement with the audit finding and the Authority has already begun the process of scheduling QC inspections for FY 2026.