Finding Text
Criteria or specific requirement: (1) According to the OMB Compliance Supplement for the Moving To Work Program, "MTW Agencies must ensure that housing assisted under the demonstration program meets housing quality standards established or approved by the Secretary. The HCV program regulations at 24 CFR sections 982.401 through 982.405 set forth basic housing quality standards (HQS) which all units must meet, and the PHA must verify by inspection, before initial assistance can be paid on behalf of a family and at least annually throughout the term of the assisted tenancy. Current HQS regulations consist of 13 key aspects of housing quality, performance requirements, and acceptability criteria to meet each performance requirement. HQS include requirements for all housing types, including single and multi-family dwelling units, as well as specific requirements for special housing types, such as manufactured homes, congregate housing, single room occupancy, shared housing, and group residences (Section 204(c)(3)(E) of Pub. L. No. 104-134 (42 USC 1437f (note)))."
(2) According to the Authority’s inspection procedures, inspection team initials and dates the comment box within the Yardi system when inspection is completed.
Condition: The Authority did not have adequate internal controls designed to ensure that NSPIRE inspections were completed in accordance with compliance requirements.
Questioned costs: None
Context: During the testing of the MTW tenant files, certain eligibility compliance deficiencies were noted in 3 out of 40 files:
(1) 2 out of 40 sampled units did not have inspections completed in a timely manner. Only one unit’s issues overlapped with the issues noted below.
(2) 2 out of 40 sampled units did not provide the inspections results for the correct unit addresses that were being tested, and therefore did not meet the internal control requirement. Only one unit’s issues overlapped with the issues noted above.
Cause: Lots of turnover in the inspections department during the fiscal year. The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as its internal inspection procedures.
Effect: The Authority is not in compliance with federal regulations regarding housing quality standards and completing reinspections in a timely manner that aligns with its administrative plan. The Authority is not following its internal inspection procedures.
Repeat Finding: 2023 – 002
Recommendation: We recommend that the Authority review the controls in place to ensure that the inspections team can complete the reinspections in a timely manner and are knowledgeable of all internal procedures in place over inspections. We also recommend that the Authority review rules and internal controls in place around record retention for completed inspections.
Views of responsible officials: There is no disagreement with the audit finding.