Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Choice Voucher Program
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: TX017 – 2023
Award Period: July 1, 2022 through June 30, 2023
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Other Matters
Criteria or Specific Requirement:
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 HQS 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 (24 CFR sections 982.158(d) and 982.404).
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 (24 CFR sections 982.158(d) and 982.405(b)).
Prior Year Finding: This finding is a repeat finding in the immediate prior year. Prior year finding number was 2022-003.
Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that HQS inspection requirements were being met.
Questioned Costs: None
Context: Of the 40 annual HQS inspections tested, it was noted:
1 instance where a unit failed inspection and was not reinspected within 30 days of the initial failure date
2 instances where the passed inspection of a previously failed unit was not properly documented
2 instances where the Authority failed to process abatements for units that failed inspections
1 instance where the Authority failed to process termination in a timely manner.
Of the 11 quality control re-inspections tested, it was noted that:
7 quality control inspections were not performed within 90 days of the original inspection date.
1 instance where the quality control inspection was performed by the same inspection of the original inspection.
Our sample was a statistically valid sample.
Cause: The Authority does not have adequate internal controls designed to ensure that HQS inspection requirements were being met.
Effect: The Authority is not in compliance with program requirements over HQS Inspections.
Recommendation: The Authority should implement processes to ensure all HQS re-inspections are completed timely and that there is proper documentation of approved extensions and abatements.
View of Responsible Officials: Management agrees with the finding.