Finding Text
2022-003 HCVP HQS Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Federal Award Identification Number and Year: MO004; 2022 Award Period: January 1, 2022 through December 31, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: The PHA must inspect the unit leased to a family at least biennially 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(d) 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 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 (24 CFR sections 982.158(d) and 982.404). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that HQS inspection requirements were being met. Questioned Costs: $39,976 Context: Of the 60 annual HQS inspections tested, it was noted that 4 out of 60 units were not inspected on a biennial basis. Our sample was a statistically valid sample. Of the 40 failed HQS inspection tested, it was noted: ? 3 units were not reinspected within 30 days of the initial failure date ? 9 units did not have their housing assistance payments (HAP) abated or their HAP contract terminated due to the owner not correcting cited HQS deficiencies within the specified correction period Of the 11 quality control re-inspections tested, it was noted that 8 were not inspected within 90 days of original inspection date. Our sample was a statistically valid sample. Cause: The Authority does not have adequate internal controls designed to ensure that HQS inspection requirements were being met. Effect: The Authority is not in compliance with program requirements over HQS Inspections. Repeat Finding: This finding is a repeat finding in the immediate prior year. Prior year finding number was 2021-004. Recommendation: The Authority should implement processes to ensure all HQS biennial and re-inspections are completed timely and that there is proper documentation and enforcement of approved extensions and abatements. View of Responsible Officials: Management agrees with the finding.