Finding 599000 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2022-12-12

AI Summary

  • Core Issue: Several housing unit inspections failed to meet Housing Quality Standards (HQS) and were not re-inspected on time.
  • Impacted Requirements: The PHA must conduct annual inspections and enforce timely corrections of deficiencies to avoid HAP payment issues.
  • Recommended Follow-Up: Strengthen internal controls to ensure timely correction of HQS deficiencies and compliance with inspection requirements.

Finding Text

2022-001 ? Section 8 Housing Choice Vouchers Program CFDA Number: 14.871 Compliance Requirements: Special Tests and Provisions Condition and Criteria: The 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(3) and 982.405(b)). For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies with 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. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Auditors? review of HQS inspections reflected that several inspections failed and were not reinspected within the required time frame. Type of Finding: Significant Deficiency Cause: The internal control structure was not adequate to prevent these deficiencies. Effect: HAP payments were not abated. Questioned Costs: $12,612 Auditors? Recommendation: We recommend the Housing Authority strengthen its internal controls to ensure that HQS deficiencies are corrected within the required time frame.

Categories

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

Other Findings in this Audit

  • 22558 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $6.19M