Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Assistance Listing Numbers: 14.871 and 14.879
Noncompliance – N. Special Tests and Provisions - Housing Quality Standards
Non Compliance Material to the Financial Statements: Yes
Material Weakness in Internal Control over Compliance for Special Tests and Provisions
Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the 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)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days.
Condition: Based upon inspection of the Authority’s files and on discussion with management, there were units that were not inspected within the biennial inspection period of two (2) years. Additionally, there were units that failed inspections that did not pass reinspection within 30 days without penalty.
Context: There are approximately one thousand four hundred and twenty five (1,425) Section 8 Housing Choice Vouchers' units and ninety nine (99) Mainstream Vouchers' units. Of a samples size of twenty seven (27) Section 8 Housing Choice Vouchers' files and ten (10) Mainstream Vouchers' files, two (2) and one (1) biennial inspections, respectively, were not completed in a timely manner. Additionally, there are approximately two hundred and twelve (212) Section 8 Housing Choice Vouchers' units and fifteen (15) Mainstream Vouchers' units with failed inspections. Of a sample size of twenty one (21) Section 8 Housing Choice Vouchers' failed inspections and two (2) Mainstream Vouchers' failed inspections, ten (10) and one (1) failed inspections, respectively, did not pass reinspection within 30 days. Housing assistance payments were not abated nor was the tenant relocated.
Our sample size is statistically valid.
Known Questioned Costs: $5,324
Cause: There is a material weakness for the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed biennial HQS inspections in compliance with program requirements.
Effect: The Section 8 Housing Choice Vouchers and Mainstream Vouchers program is in material non-compliance with the special tests and provisions type of compliance related to HQS inspections.
Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.