Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Moving to Work Demonstration Program
Assistance Listing Number: 14.881
Federal Award Identification Number and Year: DC001VO - 2023
Award Period: October 1, 2022 – September 30, 2023
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or Specific Requirement: MTW Agencies must ensure that housing assisted under the demonstration program meets housing quality standards established or approved by the Secretary. The HCV program regulations at 24 CFR sections 982.401 through 982.405 set forth basic housing quality standards (HQS) which all units must meet, and the PHA must verify by inspection, before initial assistance can be paid on behalf of a family and at least annually throughout the term of the assisted tenancy. Current HQS regulations consist of 13 key aspects of housing quality, performance requirements, and acceptability criteria to meet each performance requirement. HQS include requirements for all housing types, including single and multi-family dwelling units, as well as specific requirements for special housing types, such as manufactured homes, congregate housing, single room occupancy, shared housing, and group residences (Section 204(c)(3)(E) of Pub. L. No. 104-134 (42 USC 1437f (note))).
Condition/Context: For 4 of the 40 files tested, we were unable to view support for biennial inspections being performed.
Questioned Costs: Unable to determine.
Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements.
Effect: The Authority is not in compliance with federal regulations regarding HQS inspections.
Repeat Finding: No.
Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordance with their admin plan.
Views of Responsible Officials: There is no disagreement with the audit finding.