Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: The South Carolina State Housing Finance and Development Authority (the Authority) must inspect a unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control (QC) re-inspections (24 CFR sections 982.405(a) and 982.405(b)). Condition: The Authority did not perform HQS and QC inspections in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 units found that 2 units that were not inspected timely. The Authority did not perform QC inspections during the fiscal year. The sample was statistically valid. Cause: HQS inspections were not completed within the required timeframe for 2 units. Due to the COVID-19 pandemic, QC inspections were waived under PIH notice 2021-14 until December 31, 2021; however, the Authority did not perform QC inspections for the period January 1, 2022 ? June 30, 2022. Effect: The Authority is not in compliance with HQS and QS inspection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that required HQS and QC inspections are completed timely. Views of responsible officials: There is no disagreement with the audit finding.