Finding Text
2024 – 007 – Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: FL007, 2024 Award Period: July 1, 2023 to June 30, 2024 Type of Finding: • Material Weakness in Internal Control Over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified Authority approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). In addition, all HCV units are required to be inspected annually. The Authority 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 Authority must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below. Of the 120 files tested: • 3 instances where the Authority did not perform an annual inspection • 4 instances where repairs were not completed within the required correction period of 30 days for deficiencies • 2 instances where the repairs were not completed within the required correction period of 24 hours for life threatening deficiencies • 60 instances where the internal control over HQS enforcement was not documented Questioned costs: Known: $3,706 Context: Of the 60 files tested for annual HQS inspections, we noted that 3 had exceptions. Of the 60 files tested for HQS enforcement, 60 inspections had exceptions. Cause: The Authority does not have adequate internal controls designed to ensure that inspection requirements were being met. Effect: The Authority is not in compliance with inspection requirements. Repeat Finding: Yes 2024 – 007 – Inspections Recommendation: We recommend that the Authority designate an individual to review the third party inspection reports and track inspections and their timing. Views of responsible officials: There is no disagreement with the audit finding.