Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers
Federal Assistance Listing Numbers: 14.871 and 14.879
Noncompliance N. Special Tests and Provisions HQS Enforcement
Non Compliance Material to the Financial Statements: Yes
Material Weakness in Internal Control over Compliance for Special Tests and Provisions
Criteria: HQS Enforcement. For units under HAP contract that fail to meet HQS, the PHA must require
the owner to correct all life threatening HQS deficiencies within 24 hours after the inspections and all
other deficiencies within 30 days or within a specified PHA-approved extension.
Condition: Based upon inspection of the Authoritys files and on discussion with management there were
inspection reports that were unavailable for examination at the time of audit.
Context: The Authority was not able to provide eight (8) out of eight (8) failed and passed inspections
selected for testing. As a result, we were unable to determine if the units meet the HQS as required by 24
CFR sections 982.158(d) and 982.405(b).
Known Questioned Costs: $39,511
Cause: There is a material weakness in internal controls over the compliance for the special tests and
provisions type of compliance related to HQS inspections. The Authority has not properly considered,
designed, implemented, maintained and monitored a system of internal controls that assures the
program is in compliance.
Effect: The Section 8 Housing Choice Vouchers and Mainstream Vouchers programs are in material
non-compliance with the special tests and provisions type of compliance related to HQS enforcement.
Recommendation: We recommend the Authority design and implement internal control procedures that
will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Views of responsible officials and planned corrective action: The Authority has recognized the material
weakness in the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs and will
implement internal control procedures that will ensure compliance with federal regulations.