Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Section 8 Project-Based Cluster
Assistance Listing Number: 14.195/14.856
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.
Material Noncompliance (Modified Opinion)
Criteria: PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS). The PHA must prepare a unit inspection report (24 CFR sections 880.612, 881.601, 882.516, 882.808(n), 883.701, 884.217, 886.123, and 886.323).).
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: Unknown
Context:
Testing of 40 HCVP tenant files for annual inspection standards revealed the following exceptions:
- 4 files did not have an annual inspection that was completed within the 12-month fiscal period.
- 33 files did not have a previous or subsequent inspection performed to verify the Commission is performing inspection on an annual basis.
Cause: The Commission does not have controls in place to ensure it is meeting HQS inspection requirements set by HUD.
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.