Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Numbers: 14.871/14.879
Federal Award Identification Number and Year: SC911VO - 2023
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirement: Special Tests and Provisions – Housing Quality Standards (HQS) Inspections
Type of Finding:
Material Weakness in Internal Control over Compliance
Material Noncompliance (Modified Opinion)
Criteria or specific requirement: The South Carolina State Housing Finance and Development Authority (the Authority) must inspect a unit leased to a family at least annually to determine if the unit meets HQS and the Authority must conduct quality control (QC) re-inspections (24 CFR sections 982.405(a) and 982.405(b)).
Condition: The Authority did not perform HQS and QC inspections in accordance with program compliance requirements.
Questioned costs: Unable to determine.
Context: A sample of 40 units found that 3 units that were not inspected timely. The Authority did not perform QC inspections during the fiscal year.
Cause: HQS inspections were not completed within the required timeframe for 3 units. The Authority did not perform QC inspections during the fiscal year.
Effect: The Authority is not in compliance with HQS and QC inspection requirements.
Repeat Finding: Yes, see finding 2022-001.
Recommendation: We recommend the Authority implements controls to ensure that required HQS and QC inspections are completed timely.
Views of responsible officials: There is no disagreement with the audit finding.