Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Housing Choice Vouchers
Federal Catalog Numbers: 14.871
Noncompliance – N. Special Tests and Provisions - Housing Quality Standards
Non Compliance Material to the Financial Statements: No
Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions
Criteria: HQS Inspections. Per the Authority's HCV Admin Plan, the PHA must inspect the unit leased to a family at least annually to determine if the unit meets HQS standards 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)). These inspection reports are required to be maintained and available for examination at the time of audit.
Condition: Based upon inspection of the Authority’s files and on discussion with management there were inspection reports that were unavailable for examination at the time of audit.
Context: Of a sample size of thirty-two (32) units, four (4) units did not have annual HQS inspections performed timely.
Our sample size is statistically valid.
Known Questioned Costs: $2,249
Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance.
Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the 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.
Views of responsible officials and planned corrective action: The Authority has recognized the significant deficiency in the Section 8 Housing Choice Vouchers Program and will implement internal control procedures that will ensure compliance with federal regulations. Joanna Lara, Director of Housing Administration is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring by December 31, 2024.