Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871/14.879
Federal Award Identification Number and Year: DC001VO - 2023
Award Period: October 1, 2022 – September 30, 2023
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Material Noncompliance (Modified Opinion)
Criteria or Specific Requirement: When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404).
Condition/Context: Exceptions noted in 22 of 22 files tested:
• For 21 of 22 files tested, the file did not include the results letter to document the failed inspection and the required correction period for any deficiencies.
• For 19 of 22 files tested, the file did not contain a pass inspection report documenting repairs were completed.
• For 19 of 22 files tested, the file did not contain documentation that the unit was properly placed under abatement and/or HAP was not paid under the abatement period.
• For 19 of 22 files tested, the file did not contain documentation showing whether the tenant failed to correct deficiencies and that the PHA took proper steps to enforce the family obligations.
Questioned Costs: Unable to determine.
Cause: The Authority did not reinspect or abate units timely.
Effect: The Authority is not in compliance with HQS enforcement requirements.
Repeat Finding: The finding is a repeat of finding 2022-004 in the prior audit period.
Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe.
Views of Responsible Officials: There is no disagreement with the audit finding.