Finding 968708 (2022-008)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-04-03
Audit: 302533
Organization: Municipality of Juana Diaz (PR)

AI Summary

  • Core Issue: Required quality control re-inspections for the Housing Voucher Program were not conducted in fiscal year 2021-2022.
  • Impacted Requirements: Compliance with federal regulations (24 CFR 982.405 and 985.2) regarding supervisory quality control inspections was not met.
  • Recommended Follow-Up: Management should enhance internal controls to ensure annual quality control re-inspections are performed as required.

Finding Text

FINDING NUMBER 2022-008 FEDERAL PROGRAM HOUSING VOUCHER CLUSTER: SECTION 8 HOUSING CHOICE VOUCHERS (ASSISTANCE LISTING NUMBER 14.871) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING COMPLIANCE AND INTERNAL CONTROL COMPLIANCE REQUIREMENT SPECIAL TEST- HOUSING QUALITY STANDARDS INSPECTIONS CONDITION The Program staff did not perform the required quality control re-inspections during fiscal year 2021-2022. CRITERIA Code of Federal Regulations 24, Section 982.405 (b) states that the PHA must conduct supervisory quality control HQS inspections. 24 CFR 985.2 (b) specifies the minimum sample size requirements for quality control of HQS inspections. CAUSE The Program’s internal controls and procedures fail to ensure that the quality control re-inspections were performed during the fiscal year 2021-2022. EFFECT The lack of quality re-inspections procedures could cause that possible errors made during the ongoing re-inspections process could be detected and corrected. RECOMMENDATION I recommend management to continue strengthening the internal controls and procedures to ensure that required quality control re-inspections are performed annually. QUESTIONED COSTS None PRIOR YEAR FINDING Not applicable. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to strengthening existing internal controls and procedures to ensure the required quality control re-inspections are performed annually.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 392260 2022-005
    Material Weakness
  • 392261 2022-006
    Material Weakness
  • 392262 2022-006
    Material Weakness
  • 392263 2022-007
    Material Weakness Repeat
  • 392264 2022-007
    Material Weakness Repeat
  • 392265 2022-007
    Material Weakness Repeat
  • 392266 2022-008
    Material Weakness
  • 392267 2022-009
    Material Weakness
  • 392268 2022-009
    Material Weakness
  • 968702 2022-005
    Material Weakness
  • 968703 2022-006
    Material Weakness
  • 968704 2022-006
    Material Weakness
  • 968705 2022-007
    Material Weakness Repeat
  • 968706 2022-007
    Material Weakness Repeat
  • 968707 2022-007
    Material Weakness Repeat
  • 968709 2022-009
    Material Weakness
  • 968710 2022-009
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
97.030 Community Disaster Loans $2.61M
93.356 Head Start Disaster Recovery $1.38M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.21M
14.218 Community Development Block Grants/entitlement Grants $461,967
21.019 Coronavirus Relief Fund $353,054
10.558 Child and Adult Care Food Program $105,205
93.600 Head Start $96,463
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $66,155
14.871 Section 8 Housing Choice Vouchers $45,360
14.241 Housing Opportunities for Persons with Aids $37,317
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $36,115
21.027 Coronavirus State and Local Fiscal Recovery Funds $26,400
14.896 Family Self-Sufficiency Program $24,680