Finding Text
Finding No. 2022-001 ? CFDA No. 14.871 ? Special Tests and Provisions CONDITION: The Authority failed to document annual Housing Quality Standards (HQS) inspections in accordance with its Administrative Plan and HUD regulations. CRITERIA: PHAs are required to inspect units leased to Housing Choice Voucher program participants at least annually and prepare unit inspection reports in accordance with 21 CFR 982.158(d). QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: During audit fieldwork, 40 HAP contract files from a statistically valid sample were examined for compliance with annual HQS inspection requirements. Of the 40 files examined, nine (9) files did not contain current annual inspection reports. EFFECT: The Authority is not in compliance with federal regulations regarding HQS inspections and documentation. This could result in unallowable HAP payments to owners of units that do not meet required Housing Quality Standards. CAUSE: The overall cause was a lack of management oversight and quality control over this program. RECOMMENDATION: The Authority should implement greater oversight over the Housing Choice Voucher program to ensure that annual inspections are completed and documented at least annually as required. The Authority indicated in the 2021 Corrective Action plan they hope to have a process in place for this by October 1, 2022, after the conclusion of this period under audit.