Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Award Period: April 1, 2021 ? March 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: For units under HAP contract that fail to meet Housing Quality Standards (HQS), the Authority must require the owner to correct the deficiencies within a specified correction period. 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 (24 CFR sections 982.158(d) and 982.404). Condition: In a population of over 250 failed HQS inspections, an exception was noted in 1 of the 40 inspections tested. HAP was not properly abated until the unit passed inspection. Questioned costs: Unable to determine. Context: 40 failed HQS inspections were selected from a population of over 250. The sample was statistically valid. Cause: The Authority did not abate HAP for the correct period of time. Effect: The Authority is not in compliance with federal regulations regarding HQS enforcement. HAP was overpaid. Repeat Finding: No Recommendation: We recommend that the Authority reviews its internal controls over HAP abatement to ensure units that do not meet HQS are abated for the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.