Round Rock Housing Authority

Program Name Housing Choice Vouchers "Internal Control" Significant Deficiency N Special Tests ALN(s) 14.871

2025-001 HQS Enforcement

Criteria For units under HAP contract that fail to meet HQS, if the reported deficiency is life-threatening, the PHA must, within 24 hours of notification, both inspect the housing unit and notify the owner if the life-threatening deficiency is confirmed. The owner must then make the repairs within 24 hours of PHA notification. If the reported deficiency is non-life-threatening, the PHA must, within 15 days of notification, both inspect the unit and notify the owner if the deficiency is confirmed. The owner must then make the repairs within 30 days of notification from the PHA or within any PHA-approved extension. (24 CFR section 982.405(d)). If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition During our audit, we identified seven (7) failed HQS that did not receive a pass for several months and no rent abetment process was started or enforced during that time period. Context The HQS population was 168 failed inspection. We selected a sample of 17 inspection and identified of those 17 reviewed, 7 did not obtain a re-inspection pass within the Criteria noted above and no rent abetment process was enforce on landlord. Cause The non-compliance appears to stem from oversight or procedural lapses in the enforcement of HQS within the Housing Voucher Cluster program. This may be due to inadequate training, monitoring, or failure to adhere to established protocols. Effect The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in operating and financial penalties. Recommendations Implement more stringent procedures for monitoring HQS compliance, including timely reinspection and enforcement of HAP abatement or voucher cancellation. Enhance training for staff involved in the HQS process to ensure a thorough understanding of compliance requirements. Establish a system of regular audits to identify and rectify lapses in HQS enforcement promptly. Management Views The auditee acknowledges the deficiency in enforcing Housing Quality Standards (HQS) as highlighted in the finding. In response to this issue, the management commits to implementing a comprehensive Corrective Action Plan.

US Department of Housing and Urban Development Direct Award

Program Name Housing Choice Vouchers "Internal Control" Significant Deficiency L Reporting ALN(s) 14.871

2025-002 SEMAP Certification

Criteria 24 CFR Part 985 Subpart B—Program Operation § 985.101—SEMAP certification. An PHA must submit the HUD‐required SEMAP certification form within 60 calendar days after the end of its fiscal year. The certification must be approved by PHA board resolution and signed by the PHA executive director. If the PHA is a unit of local government or a state, a resolution approving the certification is not required, and the certification must be executed by the Section 8 program director. Condition During the audit, it was noted that the SEMAP was submitted on time, but the PHA board did not approve the SEMAP via board resolution. Context The PHA board did not approve the SEMAP via board resolution within 60 calendar days after the end of the fiscal year end. Cause The PHA mistakenly missed approving the SEMAP. Effect The Authority did not follow the federal guidelines relating to SEMAP certification. Recommendations To have the board approve the SEMAP certification via Board Resolution. Questioned Costs None. Management Views Management agrees and has a Corrective Action Plan identifying steps to resolve this finding.