Finding Text
2025-004: HQS Quality Control Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 8 Choice Housing Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: CA103VO, CA103AF, CA103 AFR; 2024 and 2025 Award Period: July 1, 2024 – June 30, 2025 Compliance Requirement Affected: N Special Tests and Provisions Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: The Public Housing Agency (PHA) must conduct supervisory quality control HQS inspections (24 CFR section 982.405(c)). Condition: The City was unable to provide us with a complete list of supervisory quality control HQS inspections performed for the fiscal year. Questioned Costs: None identified Context: The Section 8 Management Assessment Program (SEMAP) is the U.S. Department of Housing and Urban Development’s assessment program to measure performance of entities administering Section 8 Choice Housing Vouchers programs. One of the requirements is for the entity to perform supervisory quality control HQS inspections on a sample basis based on the number of vouchers being administered. For the current year, a minimum of 15 supervisory quality control HQS inspections were supposed to have been performed. Cause: Staff turnover in the City’s Housing Department Effect: The City was not in compliance with requirements of Housing Quality Standards for inspections. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City update their controls to ensure that the supervisory quality control HQS inspections are performed in a timely manner and that proper documentation of the annual process and results are maintained. Furthermore, we recommend reperformance of the supervisory quality control HQS inspections for FY24-25. Views of Responsible Officials and Corrective Action: Management agrees with this finding. The RBHA updated the administrative plan in 2026. The RBHA has calendared the required monthly days for current and future staff to schedule and conduct quality control inspections. Calendar reminders will alert staff to begin and complete the quality control inspections process. RBHA staff also created a file folder for Quality Control Inspections in the share drive to centralize the quality control inspections details for current and future staff. Within these folders are tracking forms to document that the supervisory inspections that are performed in a timely manner and that proper documentation of the annual process and results are maintained.