We audited the Housing Authority of the City of Camden NJ's administration of its housing quality standards inspection program for its Section 8 Housing Choice Voucher program as part of our fiscal year 2010 audit plan. The audit objective addressed in this report was to determine whether the Authority ensured that its program units met the U.S. Department of Housing and Urban Development's (HUD) housing quality standards. The Authority did not ensure that its program units met housing quality standards as required. Of 17 units inspected, 16 did not meet HUD's housing quality standards. Moreover, 10 of the 16 units were in material noncompliance with housing quality standards. The Authority spent $29,791 in program and administrative funds for these 10 units. In addition, it did not properly identify life-threatening violations, conduct timely reinspections or maintain documentation to show that owners made repairs within specified time limits, and abate assistance payments to owners for units that did not meet housing quality standards. We recommended that HUD require the Authority to (1) ensure that housing units inspected during the audit are repaired to meet HUD's housing quality standards; (2) reimburse its program from non-Federal funds for the improper use of $29,791 in program and administrative funds for units that materially failed to meet HUD’s housing quality standards; and (3) develop and implement adequate controls to ensure that program units meet housing quality standards, inspectors are periodically provided training, quality control inspections are thorough, and the results are used to improve the program. We also recommended that HUD require the Authority to revise and update its administrative plan to ensure that violations are properly categorized and repairs are completed within the prescribed time limits and that it abates housing assistance payments in accordance with HUD requirements.