Finding Text
Finding 2023-001:
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Mainstream Vouchers
Assistance Listing Number: 14.879
Noncompliance – N. Special Tests and Provisions – Housing Quality Standards
Non Compliance Material to the Financial Statements: No
Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions
Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days.
Condition: Based upon inspection of the Authority’s files and on discussions with management, the Authority did not properly abate one (1) out of eight (8) annual failed inspections selected for testing. Context: The Authority did not properly abate one (1) out of eight (8) failed inspections selected for testing. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b).
Our sample size is statistically valid.
Known Questioned Costs: $6,984
Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance with Notice PIH 2021-14(HA). Effect: The Mainstream Vouchers Program is in non-compliance with the with the special tests and provisions type of compliance related to HQS inspections.
Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Mainstream Vouchers Program and has implemented internal control procedures in 2023 that will ensure compliance of federal regulations.