Finding Text
U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Finding 2022-001 ? Special Tests & Provisions ? HQS Enforcement Housing Choice Voucher #14.871 Other Matter/Significant Deficiency Statement of Condition Audit procedures noted instances of incorrect abatement procedures related to failed HQS Inspections. Criteria PHA?s must require owners to cure HQS deficiencies within the required correction period or otherwise abate HAPs beginning no later than the first of the month following the correction period and no retroactive payments are to be made for the abatement period. Cause The Authority?s procedures call for withholding of housing assistance during HQS enforcement, however, no actual abatement occurs as landlords were given retroactive payments upon receipt of passed inspection. Effect or Potential Effect Overpayment of housing assistance due to failure to implement abatement procedures. Questioned Costs Known questioned costs totaling $13,504. Context A sample of 15 files were selected to audit failed HQS inspections from a population of 130. The test found 4 files with some form of HQS inspection documentation issue. Our sample was not a statistically valid sample. Recommendation We recommend the Authority continue its efforts in restructuring the HQS enforcement policies by initiating abatements in accordance with the revised administrative plan. In addition, the Authority should establish a formal process to document inspections extensions provided. Management?s Response Management agrees with finding, see Corrective Action Plan for plan of action.