Finding Text
2022 ? 005: Annual Inspections Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Material Weakness in Internal Control over Compliance ? Material Noncompliance Criteria or specific requirement: Reviewed the tenant file to ensure that it documented the completion of an HQS inspection in accordance with the HCVP Admin Plan and 24 CFR 982.158(d) & 982.405(b) either on a paper inspection form or electronically. This includes the proper reinspection procedures. If the family was a participant in the Family Self Sufficiency (FSS) Program an inspection is not required. (Special Tests and Provisions- Housing Quality Standards Inspections). Per discussion with Roscely Santiago, there were no annual HQS Inspections performed in 2021. Instead, HARC sent a letter acquiring signature of landlord and tenant that there were no life threatening deficiencies. The most recent passed inspection occurred within 12 months of previous passed inspection. If HQS required reinspections, re-inspection was completed with required time period. Condition: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the criteria section of this finding. Questioned Costs: Known - None Likely - Undeterminable Context: From a sample of sixty (60) program participant files selected for testing, twenty-one (21) tenant files failed their annual inspection, repairs were not completed within the required timeframe and HAP was not abated. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the stated criteria. Repeat Finding: No Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Views of responsible officials: There is no disagreement with the audit finding.