Finding Text
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). 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. We selected a sample of 40 failed inspections that occurred during the fiscal year. Out of the 40 samples
selected, 6 of those lacked the proper documentation of a follow up passed inspection. Controls over compliance associated with the Authority’s grants of federal funds are inadequate. The Authority is non‐compliant with the federal regulations over this federal program, this could potentially
result in significant operating and financial penalties. 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 agrees and has a corrective plan detailing the course of action to be taken in the next fiscal
year.