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 – Failed HQS Inspections Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: According to the OMB Compliance Supplement for HCVP program. "For units under HAP contract that fail to meet HQS, if the reported deficiency is life-threatening, the PHA must, within 24 hours of notification, both inspect the housing unit and notify the owner if the lifethreatening deficiency is confirmed. The owner must then make the repairs within 24 hours of PHA notification. If the reported deficiency is non-life-threatening, the PHA 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 the PHA or within any PHA-approved extension. (24 CFR section 982.405(d))." Condition: The Authority did not have adequate internal controls designed to ensure that the failed HQS re-inspections were completed timely. Context: During our testing over failed HQS inspections, auditor noted 6 of the 10 selections were not re-inspected timely. Questioned costs: None Cause: The Authority did not have adequate internal controls designed to ensure that inspections were completely timely. Effect: The Authority is not in compliance with program requirements over failed HQS inspections. Recommendation: We recommend that the Authority implement internal controls to ensure failed HQS inspections are completed timely. Repeat Finding: No. Recommendation: We recommend that the Authority implement internal controls to ensure failed HQS inspections are completed timely. View of responsible officials and planned corrective action: There is no disagreement with the audit finding and the Authority will be meeting with their outsourced vendor of HQS inspections and implement more oversight of this vendor.