Finding Text
Finding 2022-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance ? N. Special Tests and Provisions - Housing Quality Standards Inspections Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions - Housing Quality Standards Inspections Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets 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)). Condition: Based upon inspection of the Authority?s files and on discussion with management, there were biennial HQS inspections that were not performed in a timely manner. Context: Of a sample size of thirty-four (34) tenant files, six (6) biennial HQS inspections were not performed in a timely manner. Our sample size is statistically valid. Known Questioned Costs: $19,878 Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to housing quality standards inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the special tests and provisions type of compliance related to housing quality standards inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.