Finding 584859 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-01-12

AI Summary

  • Core Issue: One unit under the Section 8 Housing Choice Vouchers Program was not reinspected within the required two-year period, leading to non-compliance with Housing Quality Standards.
  • Impacted Requirements: The PHA must conduct biennial inspections and quality control re-inspections as per federal regulations (24 CFR sections 982.158(d) and 982.405(b)).
  • Recommended Follow-Up: Implement a corrective action plan to ensure timely inspections and compliance with Uniform Guidance and the compliance supplement.

Finding Text

Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the 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: Based upon inspection of the Authority’s files and on discussion with management, there was a unit that was not reinspected within the biennial reinspection period of two (2) years. Context: There are approximately 353 Section 8 Housing Choice Vouchers units. Of a sample size of fifteen (15) files, one (1) biennial inspection was not completed in a timely manner. Our sample size is statistically valid. Known Questioned Costs: $934 Cause: The Authority's contract administrator for the Section 8 Housing Choice Vouchers Program was unable to complete the inspection in a timely basis due to lack of manpower. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement a corrective action plan that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority has an interlocal agreement with a neighboring housing authority for administration of the Section 8 Housing Choice Vouchers Program. The authority understands the reason for the finding, in that the inspection was one month late. Previously a quality control sample of Section 8 Housing Choice Voucher files administered by the neighboring Housing Authority had been reviewed each month. This was with respect to the income calculation, specifically. Housing Kitsap will add a verification of inspection requirements to this process.

Categories

Questioned Costs HUD Housing Programs Significant Deficiency Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

  • 8417 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $4.27M
10.415 Rural Rental Housing Loans $3.17M
10.420 Rural Self-Help Housing Technical Assistance $864,543
14.247 Self-Help Homeownership Opportunity Program $846,024
14.195 Section 8 Housing Assistance Payments Program $728,227
14.850 Public and Indian Housing $525,806
14.872 Public Housing Capital Fund $413,408
14.218 Community Development Block Grants/entitlement Grants $338,925
14.239 Home Investment Partnerships Program $4,228