Finding 570547 (2024-002)

Finding 2024-002 Assistance Listing Number: 14.871 Program Title: Housing Voucher Cluster: Section 8 Housing Choice Voucher Program Award Number / Year: WI003VO0119 (2010) / 2024 Pass-Through Entity: Not applicable Criteria: 24 CFR, sections 982.158(d) and 982.405(b) require all units leased to have a unit inspection report filed biennially to determine if the unit meets Housing Quality Standards. Condition/Context: One unit tested did not have an inspection completed within the last two years, and another unit tested did not have adequate support that the inspection was completed. Our sample was statistically valid. Cause: The City did not have internal control processes and procedures in place to ensure timely completion of inspections and a HUD 50058 report was submitted without adequate supporting documentation. Effect: A unit may have unsafe housing conditions. Questioned Costs: None noted. Recommendation: The City should review its internal control procedures to ensure all applicable requirements of the HUD 50058 are met before submissions, including making sure an inspection is performed biennially, and that adequate supporting documentation is maintained. Management's Response: On a monthly schedule, management will review Annual HQS Inspections Report that is part of the Section Eight Management Assessment Program (SEMAP) Indicators Report generated from Inventory Management System/PIH Information Center (PIC) submissions and follow up with inspectors regarding units with incomplete information of final inspection within the last 25 months, the acceptable timeline per U.S Department of Housing and Urban Development (HUD) guidelines. By year end, CDA will train staff and fully implement the use of Emphasys HQS Mobile to schedule, complete and store reports electronically, improving internal controls of tracking inspection completion.