Finding Text
2024 – 004 – PBRA/MOD Housing Quality Standards
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Section 8 Project-Based Cluster
Assistance Listing Number: 14.195/14.856
Federal Award Identification Number and Year: MD004 (various funding increments active during period 7/1/23 - 6/30/24)
Award Period: July 1, 2023 through June 30, 2024
Type of Finding:
-Material Weakness in Internal Control over Compliance.
-Material Noncompliance (Modified Opinion)
Criteria: PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS). The PHA must prepare a unit inspection report (24 CFR sections 880.612, 881.601, 882.516, 882.808(n), 883.701, 884.217, 886.123, and 886.323).).
Condition: During our testing, we noted the Commission did not have adequate internal controls designed to ensure that inspection requirements were being met. As a result, inspections were not completed timely or at all.
Questioned costs: Unknown
Context:
Testing of 60 PBRA tenant files for annual inspection standards revealed the following exceptions:
-40 instances where tenant files were missing one or more inspections and when inspections were included, it was indeterminable whether they were within the regulatory period
-26 files missing the letters sent to tenants informing them of the scheduled HQS inspections
Cause: The Commission does not have controls in place to ensure it is meeting HQS inspection requirements set by HUD.
Effect: The Commission is not in compliance with program requirements over HQS inspections. Repeat Finding: Yes
Recommendation: The Commission should implement processes to ensure that all proper documentation is being maintained for inspections of tenant residences.
View of Responsible Officials: There is no disagreement with the audit finding.