Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: FL017 and 2021/2022 Award Period: 7/1/21-6/30/22 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: 24 CFR sections 982.158(d) and 982.404 state that 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 HAQ 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. Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure overpayments were not made to units that failed inspections. Context: During our testing of 40 files for failed inspection criteria, we noted the following: - One file tested was not properly abated after the unit failed the second inspection. The sample was a statistically valid sample. Questioned Costs: $15,677 Cause: The Authority experienced high level of staff turnover and staff absences due to the pandemic which resulted in this inspection not be conducted. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: No Recommendation: The Authority should review their process for monitoring failed inspections and ensuring that proper abatement occurs on a timely basis. View of Responsible Officials: There is no disagreement with this audit finding.