Suggested Audit Procedures a. Examine the procedures used to establish and annually review utility allowances, handle adjustment requests, and notify tenants of utility allowance adjustments. b. Select a sample of units with tenant utility allowances and their related tenant files for review. c. Test owner requests, PHA determinations, and supporting documentation for utility determinations. d. Verify that the allowances were applied to tenants correctly. 3. Housing Quality Standards Compliance Requirement The PHA or owner must provide housing that is decent, – safe, and sanitary. To achieve this end, the PHA must perform housing quality inspections at the time of initial occupancy and at least annually thereafter to assure that the units are decent, safe, and sanitary (24 CFR sections 880.612, 881.601, 882.516, 882.808(n), 883.701, 884.217, 886.123, and 886.323). Audit Objective Determine whether the PHA or owner performs the required – inspections to assure that units meet housing quality standards. Suggested Audit Procedures a. Examine the procedures used by the PHA or owner to identify those units on which housing quality inspections are due. b. Select a sample of units on which HAP contracts were executed and examine inspection reports. c. Examine records and ascertain that the PHA or owner assures that the inspections and any needed repairs are completed timely. d. Verify that the PHA reviewed the evidence of completion submitted by the owner on newly constructed or rehabilitated units accepted for occupancy. 4. Vacant Units Compliance Requirements The PHA or owner must reduce claims for assistance on – vacant units under certain circumstances. However, there are instances where special claims are allowed for vacancy losses, unpaid rent, and tenant damages on eligible units (24 CFR sections 880.611, 881.601, 882.411, 882.808(f), 883.701, 884.106, 886.109, and 886.309). Audit Objective Determine whether payments to owners are reduced for vacant units – and whether payments for special claims are proper.
Suggested Audit Procedures a. Examine the procedures used to establish and annually review utility allowances, handle adjustment requests, and notify tenants of utility allowance adjustments. b. Select a sample of units with tenant utility allowances and their related tenant files for review. c. Test owner requests, PHA determinations, and supporting documentation for utility determinations. d. Verify that the allowances were applied to tenants correctly. 3. Housing Quality Standards Compliance Requirement – The PHA or owner must provide housing that is decent, safe, and sanitary. To achieve this end, the PHA must perform housing quality inspections at the time of initial occupancy and at least annually thereafter to assure that the units are decent, safe, and sanitary (24 CFR sections 880.612, 881.601, 882.516, 882.808(n), 883.701, 884.217, 886.123, and 886.323). Audit Objective – Determine whether the PHA or owner performs the required inspections to assure that units meet housing quality standards. Suggested Audit Procedures a. Examine the procedures used by the PHA or owner to identify those units on which housing quality inspections are due. b. Select a sample of units on which HAP contracts were executed and examine inspection reports. c. Examine records and ascertain that the PHA or owner assures that the inspections and any needed repairs are completed timely. d. Verify that the PHA reviewed the evidence of completion submitted by the owner on newly constructed or rehabilitated units accepted for occupancy. 4. Vacant Units Compliance Requirements – The PHA or owner must reduce claims for assistance on vacant units under certain circumstances. However, there are instances where special claims are allowed for vacancy losses, unpaid rent, and tenant damages on eligible units (24 CFR sections 880.611, 881.601, 882.411, 882.808(f), 883.701, 884.106, 886.109, and 886.309). Audit Objective – Determine whether payments to owners are reduced for vacant units and whether payments for special claims are proper.
hud.docx