Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Voucher Cluster
Assistance Listing Number: 14.871 / 14.879
Federal Award Identification Number and Year: MD004 (various funding increments active during period 7/1/22-6/30/23)
Award Period: July 1, 2022 through June 30, 2023
Type of Finding:
Material Weakness in Internal Control over Compliance.
Other Matters.
Criteria: PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved
extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. (24 CFR sections 982.158(d) and 982.404). PHA must inspect the unit leased to a family at least 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 sections 982.158(d) and 982.405(b)).
Condition: During our testing, we noted the Commission did not have adequate internal controls designed to ensure that HQS requirements were being met. As a result, inspections were not completed timely or at all.
Questioned Costs: $38,180
Context:
Testing of 40 HCVP tenant files for failed inspection standards revealed the following:
9 files where abatement ought to have been implemented, but records could not be located.
Testing of 40 HCVP tenant files for annual inspection standards revealed the following:
13 files where the inspection was not completed and passed within regulatory period.
Cause: The Commission works with a third-party contractor to conduct all HCV inspections. The contractor did not inspect several units during the COVID pandemic and consequently played catch up this fiscal year. Moreover, the inspection company did not always notify the Commission to place a unit in abatement. As a result, the Commission has hired a new inspection company effective October 1, 2023 to conduct all inspections.
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.