Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Mainstream Vouchers and Emergency Housing Vouchers
Federal Assistance Listing Numbers: 14.879 and 14.EHV
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: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually 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 failed inspections that did not pass reinspection within 30 days without penalty.
Context: There are approximately 172 units with failed inspections. Of a sample size of seventeen (17) failed inspections, two (2) failed inspections did not pass reinspection within 30 days. HAP was not abated nor was the tenant evicted.
Our sample size is statistically valid.
Known Questioned Costs:
14.879 - Mainstream Vouchers - $1,002
14.EHV - Emergency Housing Vouchers - $7,555
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 performed HQS inspections in compliance with program requirements following the expiration of HUD waivers as a result of insufficient staffing .
Effect: The Mainstream Vouchers and Emergency Housing Vouchers programs are in non-compliance with the special tests and provisions type of compliance related to HQS inspections.
Recommendation: We recommend the Authority design and implement a corrective action plan that will assure compliance with the Uniform Guidance and the compliance supplement.
Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor, and will design and implement internal controls over compliance in order to ensure all necessary failed HQS inspections with life threatening deficiencies are addressed within 24 hours and all other deficiencies are addressed within 30 days. Shannon Koenig and CEO, executive director, is responsible for implementing this corrective action by December 31, 2024.