Finding Text
2022 ? 006: Housing Quality Standards (HQS) Enforcement Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: For units under HAP contract that fail to meet (Housing Quality Standards (HQS), the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the criteria section of this finding. Questioned Costs: Known - None Likely - Undeterminable Context: From a sample of forty (40) program participant files selected for testing, we noted six (6) instances where the repairs were not completed timely in accordance with the stated criteria and the HAP was not held. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the requirements of the 24 CFR sections 982.158(d) and 982.404 related to the HQS enforcement. Repeat Finding: Yes; 2021-004 Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of HQS enforcement. Views of responsible officials: There is no disagreement with the audit finding.