Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 8 Project-Based Cluster Assistance Listing Number: 14.195/14.856 Federal Award Identification Number and Year: MD004 (various funding increments active during period 7/1/21-6/30/22) Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance. ? Material Noncompliance (Modified Opinion) Criteria: PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS). The PHA must prepare a unit inspection report (24 CFR sections 880.612, 881.601, 882.516, 882.808(n), 883.701, 884.217, 886.123, and 886.323).). Condition: During our testing, we noted the Commission did not have adequate internal controls designed to ensure that HQS requirements were being met. Questioned costs: Unknown Context: Testing of 40 HCVP tenant files for annual inspection standards revealed that 37 files had the following exceptions: - 22 files did not have an annual inspection completed during or subsequent to the fiscal year - 15 files did not have an annual inspection that was completed within the 12-month fiscal period. Cause: The Commission does not have controls in place to ensure it is meeting HQS inspection requirements set by HUD. Effect: The Commission is not in compliance with program requirements over HQS inspections. Repeat Finding: Not a repeat. Recommendation: The Commission should implement processes to ensure that all proper documentation is being maintained for inspections of tenant residences. View of Responsible Officials: There is no disagreement with the audit finding.