Finding Text
Finding 2025-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers and Emergency Housing Vouchers Federal Assistance Listing Numbers: 14.871 and 14.EHV Noncompliance - N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the 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)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were units that failed inspections that did not pass reinspection within 30 days without penalty. Context: There were approximately two hundred six (206) Housing Voucher Cluster units with failed inspections. Of a sample size of twenty one (21) failed inspections, two (2) units did not pass reinspection within 30 days. Housing assistance payments were not abated nor was the tenant relocated. Our sample size is statistically valid. Known Questioned Costs: Amount is below threshold of $25,000. Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed annual HQS inspections in compliance with program requirements. Effect: The Authority's failure to ensure timely correction of HQS deficiencies and enforce required abatement procedures increases the risk that federal funds were used to provide housing assistance for units that did not meet HUD Housing Quality Standards. This may result in unsupported housing assistance payments, increased program costs, and reduced assurance that program funds were used in accordance with federal requirements. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.