Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers
Federal Assistance Listing Numbers: 14.871 and 14.879
Noncompliance N. Special Tests and Provisions Housing Quality Standards (HQS) Inspections
Non Compliance Material to the Financial Statements: Yes
Material Weakness in Internal Control over Compliance for Special Tests and Provisions
Criteria: HQS Inspections. Per the Authority's HCV Admin Plan, the PHA must inspect the unit leased to
a family at least annually to determine if the unit meets the 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)). These inspection reports are required to be maintained and available for examination at the
time of audit.
Condition: Based upon inspection of the Authoritys files and on discussion with management there were
inspection reports that were unavailable for examination at the time of audit.
Context: Of a sample size of twenty-four (24) units, nine (9) units did not have an annual HQS inspection
performed.
Our sample size is statistically valid.
Known Questioned Costs: $12,890
Cause: There is a material weakness 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.
Effect: The Section 8 Housing Choice Vouchers and Mainstream Vouchers programs are in material
non-compliance 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 material
weakness in the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs and will
implement internal control procedures that will ensure compliance with federal regulations.