Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Voucher Cluster
Assistance Listing Number: 14.871
Award Period: 7/1/22-6/30/23
Type of Finding: Material Weakness in Internal Control Over Compliance
Criteria: 24 CFR sections 982.158(d) and 982.405(b) state that 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 qualify control re-inspections. The PHA must prepare a unit inspection report.
Context: During our testing of 60 files for HQS inspection criteria, we noted the following:
- 10 of 60 files tested had an inspection that was not performed within the bi-annual period.
- 3 of 60 files tested utilized self-certification forms past the allowable time frame.
Questioned Costs: Unable to determine.
Cause: Prior to 2021, NOHA did not have written procedures in place for documenting inspections. NOHA applied the COVID waivers which allowed for more than 24 months in between inspections; and, NOHA attempted to acquire landlord self-certifications but in a small number of cases, did not receive the certification or it was not received by the due date.
Effect: The Authority is not in compliance with HUD regulations.
Repeat Finding: Yes
Recommendation: The Authority should review their HQS inspection policies to ensure that all inspections are performed timely, and that all necessary documentation is maintained for each inspection.
View of Responsible Officials: There is no disagreement with this audit finding.