Finding Text
2023-003 - HQS Inspections
Federal Agency: Housing Choice Voucher Program
FALM: 14.871/14.879
Federal Award Identification Number and Year: MD023, 2023
Award Period: 1/1/2023 - 12/31/2023
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion)
Criteria or specific requirement: The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)).
Condition: The Commission did not follow its policies and procedures designed to ensure HQS inspections were performed timely.
Questioned costs: Unknown
Context: During our testing of 60 files over HQS inspections, we noted the following:
- 24 of 60 units tested had an inspection that was not performed on a biennial basis as required per the Commission’s Administrative Plan.
Cause: HCHC employs a third-party inspection company. Many of the issues caused by the previous inspection company did not surface until early in 2023.
Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP calculations.
Repeat finding: Yes, 2022-003
Recommendation: We recommend the Commission review its HQS inspection policies and procedures and discuss these standards with the third-party inspection company that is utilized for these inspections to ensure all inspections are performed timely and that all necessary documentation is maintained for each inspection.
Views of responsible officials: There is no disagreement with the audit finding.