Finding Text
2022-003 ? HQS Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Program FALN: 14.871/14.879 Federal Award Identification Number and Year: MD023, 2022 Award Period: 1/1/2022-12/31/2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion) Criteria or specific requirement: 24 CFR sections 982.405(b) state that the PHA must inspect the unit leased to a family at least annually 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. Condition: The Commission did not follow its policies and procedures designed to ensure HQS inspections were performed timely. Questioned costs: Unable to determine. Context: During our testing of 40 files over HQS inspections, we noted the following: 21 of 40 units tested had an inspection that was not performed on a biennial basis as determined in the Administrative Plan. Cause: The Commission did not work closely with the inspection company with poorly written procedures in place for documenting inspections. The Commission experienced challenges during COVID in completing inspections timely. Effect: The Commission is not in compliance with HUD requirements. Repeat finding: No Recommendation: We recommend the Commission review their HQS inspection policies and procedures, and discuss these standards with the third party inspection company that is utilized for these inspections to ensure all inspections are performed timely and that all necessary documentation is maintained for each inspection. Explanation of disagreement with audit finding: There is no disagreement with the audit finding.