Finding Text
2024-003 Significant Deficiency - Special Tests (N) - HQS Inspections
Questioned Costs None
Criteria "The PHA must inspect the unit leased to a family at least bi-annually 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 §§982.405, 983.103). "
Condition During our audit, we noted multiple instances where failed HQS inspections did not have the proper support for the failed HQS inspection. Therefore, the Authority falls out of the HQS inspection compliance as noted in the Uniform Guidance Part IV HUD 14.871.
Context We selected a sample of 23 failed inspections that occurred during the fiscal year. Out of the 23 samples selected, 4 of those lacked the proper documentation of a follow up passed inspection.
Cause Controls over compliance associated with the Authority’s grants of federal funds are inadequate.
Effect The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties.
Recommendations We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance.
Management Views Management agrees and has a corrective plan detailing the course of action to be taken in the next fiscal year.