Finding Text
Criteria: "The PHA must inspect the unit leased to a family at least bi-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 (24 CFR ??982.405, 983.103))."Condition: During our audit, the Authority was unable to provide us with a reliable listing of HQS Inspections or any supporting documentation that any HQS inspections had taken place during the fiscal year under examination. Therefore, we were not able to perform the necessary procedures as described in the Uniform Guidance Part IV HUD 14.871 to ensure compliance with the above criteria. Context: We selected a sample of 40 failed inspections that occurred during the fiscal year. Out of the 40 samples selected, 1 of those lacked the proper documentation and 2 of those did not get reinspected within the proper timeframe. Cause: Controls over compliance associated with the Authority?s grants of federal funds are inadequate. Effect: The Authority is non-compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. Recommendations: We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views: Management agrees and has a corrective plan detailing the course of action to be taken in the next fiscal year.