Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: LA003, 2022 Award Period: 10/1/21-9/30/22 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Per (24 CFR sections 982.158(d) and 982.404), For units under HAP contract that fail to meet HQS, the 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. 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. Condition: During testing, it was noted that the Authority did not have adequate internal controls designed to ensure compliance with failed HQS inspection requirements. Questioned Costs: $25,491 Context: During our testing of a sample of 40 tenant files, it was noted that 1 file did not comply with compliance requirements. The sample was a statistically valid sample. ? 1 instance where a unit failed inspection and there is no documentation that the unit ever passed. Cause: The Authority did not sufficiently monitor staff and internal controls to ensure compliance with HQS inspection enforcement requirements. Effect: The Authority is not in compliance with federal regulations regarding inspections. The Authority paid HAP expenses for units that do not pass guidelines. Repeat finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2021-001. Recommendation: We recommend that management review their controls for conducting follow up inspections on initially failed home inspections and ensure compliance standards are met. Views of Responsible Officials: There is no disagreement with the audit finding.