Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Voucher Cluster
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: LA003, 2023
Award Period: 10/1/22-9/30/23
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or Specific Requirement: 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)).
Condition: During testing, it was noted that the Authority did not have adequate internal controls designed to ensure compliance with failed HQS inspection requirements.
Questioned Costs: None
Context: During testing of a sample of 60 units for annual HQS inspections and 26 units for HQS quality control (QC) re-inspections, it was noted that 13 files did not comply with compliance requirements.
3 instances where the housing authority failed to perform biennial inspections of a unit.
10 instances where the housing authority failed to conduct the quality control re-inspection within 90 days of the initial inspection.
Cause: The Authority did not sufficiently monitor staff and internal controls to ensure compliance with HQS inspection requirements.
Effect: The Authority is not in compliance with federal regulations regarding HQS inspections.
Repeat Finding: No
Recommendation: We recommend that management review their controls for conducting HQS biennial and quality control re-inspections and ensure compliance standards are met.
Views of Responsible Officials: There is no disagreement with the audit finding. Previously, staff used a 90-day window to select Quality Control samples. Doing so caused some QC inspections to be completed past the regulatory time period. Going forward, staff are selecting the sample size from a 45-day window. This allows sufficient time to complete the QC inspection within the regulatory time period.