Audit 315592

2022– 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Beneficiaries must be “low-income families,” as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a(b)(2)) (Section 204(b) of Pub. L. No. 104-134 (42 USC 1437f (note))). The Authority must ensure that housing assisted under the demonstration meets housing quality standards established or approved by HUD (Section 204(c)(3)(E) of Pub. L. No. 104-134 (42 USC 1437f (note))). Condition/Context: A sample of 80 tenant files tested for eligibility over MTW-LRPH (40) and MTW HCV (40) found exceptions in 25 of the 40 MTW-LRPH files tested and 23 of the 40 MTW-HCV files tested. The following MTW-LRPH exceptions were noted: • For 1 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 7 of 40 files tested, support was provided, however, CLA did not observe a HUD-50058 with an effective date prior to, and effective for, the rent payment pulled from rent roll. • For 6 of the 40 files tested, we were unable to recalculate annual family income listed in the tenant file to the backup support provided. We either did not observe backing support to recalculate the annual income listed on the tested HUD-50058 or we did not receive the EIV report. • For 12 of 40 files tested, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 5 of 40 tenant files tested, we did not observe a recertification checklist, or the signed Application for Applied Occupancy completed by the specialist. The following MTW-HCV exceptions were noted: • For 3 of 40 files tested, supporting documentation was not provided. • For 12 of the 40 files tested, we were unable to recalculate annual family income listed in the tenant file to the backup support provided. We either did not observe backing support to recalculate the annual income listed on the tested HUD-50058 or we did not receive the EIV report. • For 10 of the 40 files tested we were unable to determine that recertifications were completed on a biennial basis. • For 2 of the 40 files tested, we were not provided with the quality control checklist signed by a housing assistant specialist. • For 3 of the 40 files tested, the HAP per the HUD-50058 did not agree to the HAP register. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2021-002 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 009 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: PHA's must submit timely GAAP-based unaudited and audited financial information electronically to HUD (see Section 13, Moving to Work (MTW) Agencies Reporting to FASS-PH, of Notice PIH-2012-21 (HA), issued May 10, 2012). Condition/Context: Exception noted for the timeliness of the submission. Questioned Costs: Unable to determine. Cause: The Authority did not submit their financial report to HUD in a timely manner. Effect: The Authority is not in compliance with financial reporting requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that financial reporting is completed and submitted timely. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 010 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: Costs charged to the grant must be allowable in accordance with the criteria contained in 2 CFR Part 200, as applicable. Condition/Context: Exceptions noted in 1 of 40 allowable costs transactions: • For 1 payroll transaction selected, the Authority was unable to substantiate the rate of pay charged to the grant. Questioned Costs: $9,326 known; $1,636,013 projected. Cause: The Authority did not sufficiently monitor controls to ensure compliance with allowable activity requirements. Effect: The Authority is not in compliance with federal regulations related to allowable costs. Repeat Finding: No. Recommendation: We recommend management review the record-keeping practices to ensure that personnel documentation related to employee payrates can be easily accessed. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 011 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 13 of the 40 samples. Exceptions included discrepancies between the HUD-50058 and the uploaded recertification and lack of support provided. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition/Context: Exceptions noted in 35 out of 40 non-MTW HCV files tested: • For 1 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 30 of 40 samples, we were unable to recalculate the income total listed on the HUD-50058 based on the income support provided. • For 8 of 40 samples, we did not observe documentation showing that the head of household was the parent or legal guardian to a dependent for which an allowance was granted or we did not receive documentation for medical expenses. • For 7 of 40 samples, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 7 of 40 samples, we did not observe the "Authorization for Release of Information/Privacy Act Notice form (HUD-9886) singed by the tenant and all members in the household over the age of 18 for the recertification date listed. • For 9 of 40 samples, we did not observe the general release form signed by the tenant and all members in the household over the age of 18, allowing the Authority to obtain information from third parties. • For 10 of 40 samples, we did not observe a recertification checklist, or a substitute application, showing a specialist's signature. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2021-003 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404). Condition/Context: Exceptions noted in 35 of 40 files tested: • For 20 of 40 files tested, the file did not include the results letter to document the failed inspection and the required correction period for any deficiencies. • For 24 of 40 files tested, the file did not include a copy of the completed letter from DCHA specialists notifying the landlord and tenant in writing of the inspection. • For 23 of 40 files tested, the file did not contain a pass inspection report documenting repairs were completed. • For 30 of 40 files tested, the file did not contain documentation that the unit was properly placed under abatement and/or HAP was not paid under the abatement period. • For 25 of 40 files tested, the file did not contain documentation showing whether the tenant failed to correct deficiencies and that the PHA took proper steps to enforce the family obligations. Questioned Costs: Unable to determine. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: The finding is a repeat of finding 2021-004 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) 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). The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition/Context: Exceptions noted in 35 of 40 units: • For 8 of the 40 samples, we did not receive any of the documentation requested. • For 1 of the 40 samples, we were unable to view biennial inspections being performed. • For 1 of the 40 samples, we were unable to view that HQS inspections were completed in accordance with the HCVP Admin plan. • For 27 of the 40 samples, we did not receive the completed letter from the DCHA specialists notifying the landlord and tenant in writing of the inspection. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: The Authority is not in compliance with federal regulations regarding HQS inspections. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 006 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Except as provided in 24 CFR section 982.203 Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition/Context: Exceptions noted in 25 of the 25 samples: • For 25 of the 25 files tested, we were not provided with the selection notice or letter notifying the tenant that they were selected and DCHA will determine eligibility for the program. • For 23 of 25 files tested, we were not provided with a copy of the signed voucher. • For 3 of the 25 files tested, the application or registration form was missing a housing specialist signature. • For 1 of the 25 files tested, we were not provided documentation of the applicant being admitted under a special program. • For 1 of the 25 files tested, we were not provided with supporting documentation for the preference indicated. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with new tenant selection requirements Effect: The Authority is not in compliance with federal regulations regarding the required new tenant selection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained for new tenants. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 007 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition/Context: Exceptions noted in 19 of the 25 samples: • For 19 of the 25 files tested, we were not provided with the neighborhood standards report with the printed date, therefore we were unable to determine that DCHA determined the rent was reasonable prior to move-in in accordance with the administrative plan. • For 4 of the 20 samples, we were not provided with the HAP contract that was signed by a housing specialist/representative. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reasonable rent requirements. Effect: The Authority is not in compliance with federal regulations regarding the required reasonable rent requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 008 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition/Context: Exceptions noted in 18 of the 40 files tested: • For 2 of the 40 files tested, we were not provided with any of the documentation requested. • For 12 of the 40 files tested, we were not provided with the HAP Contract. • For 12 of the 40 files tested, we were not provided with the signed checklist. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with HAP contract and register requirements. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that files are maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 012 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit the HUD-50058 Family Report form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 14 of the 40 samples. We were not provided with support showing that a PIC submission was made for the recertification selected for testing. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with PIC reporting requirements. Effect: The Authority is not in compliance with federal regulations regarding the required submission of all recertifications to the PIC system. Repeat Finding: The finding is a repeat of finding 2021-006 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 013 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition/Context: DCHA did not review utility rate data for each utility category during the fiscal year. Questioned Costs: Unable to determine. Cause: The Authority did not maintain an update utility allowance schedule. Effect: The Authority is not in compliance with federal regulations regarding the requirement of maintaining an updated utility allowance schedule. Repeat Finding: No Recommendation: We recommend the Authority implements controls to ensure that the utility rate data for each utility category is reviewed each year to ensure that an up-to-date utility allowance schedule is maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition/Context: Exceptions noted in 35 out of 40 non-MTW HCV files tested: • For 1 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 30 of 40 samples, we were unable to recalculate the income total listed on the HUD-50058 based on the income support provided. • For 8 of 40 samples, we did not observe documentation showing that the head of household was the parent or legal guardian to a dependent for which an allowance was granted or we did not receive documentation for medical expenses. • For 7 of 40 samples, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 7 of 40 samples, we did not observe the "Authorization for Release of Information/Privacy Act Notice form (HUD-9886) singed by the tenant and all members in the household over the age of 18 for the recertification date listed. • For 9 of 40 samples, we did not observe the general release form signed by the tenant and all members in the household over the age of 18, allowing the Authority to obtain information from third parties. • For 10 of 40 samples, we did not observe a recertification checklist, or a substitute application, showing a specialist's signature. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2021-003 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404). Condition/Context: Exceptions noted in 35 of 40 files tested: • For 20 of 40 files tested, the file did not include the results letter to document the failed inspection and the required correction period for any deficiencies. • For 24 of 40 files tested, the file did not include a copy of the completed letter from DCHA specialists notifying the landlord and tenant in writing of the inspection. • For 23 of 40 files tested, the file did not contain a pass inspection report documenting repairs were completed. • For 30 of 40 files tested, the file did not contain documentation that the unit was properly placed under abatement and/or HAP was not paid under the abatement period. • For 25 of 40 files tested, the file did not contain documentation showing whether the tenant failed to correct deficiencies and that the PHA took proper steps to enforce the family obligations. Questioned Costs: Unable to determine. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: The finding is a repeat of finding 2021-004 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) 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). The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition/Context: Exceptions noted in 35 of 40 units: • For 8 of the 40 samples, we did not receive any of the documentation requested. • For 1 of the 40 samples, we were unable to view biennial inspections being performed. • For 1 of the 40 samples, we were unable to view that HQS inspections were completed in accordance with the HCVP Admin plan. • For 27 of the 40 samples, we did not receive the completed letter from the DCHA specialists notifying the landlord and tenant in writing of the inspection. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: The Authority is not in compliance with federal regulations regarding HQS inspections. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 006 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Except as provided in 24 CFR section 982.203 Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition/Context: Exceptions noted in 25 of the 25 samples: • For 25 of the 25 files tested, we were not provided with the selection notice or letter notifying the tenant that they were selected and DCHA will determine eligibility for the program. • For 23 of 25 files tested, we were not provided with a copy of the signed voucher. • For 3 of the 25 files tested, the application or registration form was missing a housing specialist signature. • For 1 of the 25 files tested, we were not provided documentation of the applicant being admitted under a special program. • For 1 of the 25 files tested, we were not provided with supporting documentation for the preference indicated. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with new tenant selection requirements Effect: The Authority is not in compliance with federal regulations regarding the required new tenant selection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained for new tenants. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 007 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition/Context: Exceptions noted in 19 of the 25 samples: • For 19 of the 25 files tested, we were not provided with the neighborhood standards report with the printed date, therefore we were unable to determine that DCHA determined the rent was reasonable prior to move-in in accordance with the administrative plan. • For 4 of the 20 samples, we were not provided with the HAP contract that was signed by a housing specialist/representative. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reasonable rent requirements. Effect: The Authority is not in compliance with federal regulations regarding the required reasonable rent requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 008 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition/Context: Exceptions noted in 18 of the 40 files tested: • For 2 of the 40 files tested, we were not provided with any of the documentation requested. • For 12 of the 40 files tested, we were not provided with the HAP Contract. • For 12 of the 40 files tested, we were not provided with the signed checklist. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with HAP contract and register requirements. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that files are maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 012 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit the HUD-50058 Family Report form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 14 of the 40 samples. We were not provided with support showing that a PIC submission was made for the recertification selected for testing. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with PIC reporting requirements. Effect: The Authority is not in compliance with federal regulations regarding the required submission of all recertifications to the PIC system. Repeat Finding: The finding is a repeat of finding 2021-006 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 013 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition/Context: DCHA did not review utility rate data for each utility category during the fiscal year. Questioned Costs: Unable to determine. Cause: The Authority did not maintain an update utility allowance schedule. Effect: The Authority is not in compliance with federal regulations regarding the requirement of maintaining an updated utility allowance schedule. Repeat Finding: No Recommendation: We recommend the Authority implements controls to ensure that the utility rate data for each utility category is reviewed each year to ensure that an up-to-date utility allowance schedule is maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

2022– 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Beneficiaries must be “low-income families,” as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a(b)(2)) (Section 204(b) of Pub. L. No. 104-134 (42 USC 1437f (note))). The Authority must ensure that housing assisted under the demonstration meets housing quality standards established or approved by HUD (Section 204(c)(3)(E) of Pub. L. No. 104-134 (42 USC 1437f (note))). Condition/Context: A sample of 80 tenant files tested for eligibility over MTW-LRPH (40) and MTW HCV (40) found exceptions in 25 of the 40 MTW-LRPH files tested and 23 of the 40 MTW-HCV files tested. The following MTW-LRPH exceptions were noted: • For 1 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 7 of 40 files tested, support was provided, however, CLA did not observe a HUD-50058 with an effective date prior to, and effective for, the rent payment pulled from rent roll. • For 6 of the 40 files tested, we were unable to recalculate annual family income listed in the tenant file to the backup support provided. We either did not observe backing support to recalculate the annual income listed on the tested HUD-50058 or we did not receive the EIV report. • For 12 of 40 files tested, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 5 of 40 tenant files tested, we did not observe a recertification checklist, or the signed Application for Applied Occupancy completed by the specialist. The following MTW-HCV exceptions were noted: • For 3 of 40 files tested, supporting documentation was not provided. • For 12 of the 40 files tested, we were unable to recalculate annual family income listed in the tenant file to the backup support provided. We either did not observe backing support to recalculate the annual income listed on the tested HUD-50058 or we did not receive the EIV report. • For 10 of the 40 files tested we were unable to determine that recertifications were completed on a biennial basis. • For 2 of the 40 files tested, we were not provided with the quality control checklist signed by a housing assistant specialist. • For 3 of the 40 files tested, the HAP per the HUD-50058 did not agree to the HAP register. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2021-002 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 009 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: PHA's must submit timely GAAP-based unaudited and audited financial information electronically to HUD (see Section 13, Moving to Work (MTW) Agencies Reporting to FASS-PH, of Notice PIH-2012-21 (HA), issued May 10, 2012). Condition/Context: Exception noted for the timeliness of the submission. Questioned Costs: Unable to determine. Cause: The Authority did not submit their financial report to HUD in a timely manner. Effect: The Authority is not in compliance with financial reporting requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that financial reporting is completed and submitted timely. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 010 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: Costs charged to the grant must be allowable in accordance with the criteria contained in 2 CFR Part 200, as applicable. Condition/Context: Exceptions noted in 1 of 40 allowable costs transactions: • For 1 payroll transaction selected, the Authority was unable to substantiate the rate of pay charged to the grant. Questioned Costs: $9,326 known; $1,636,013 projected. Cause: The Authority did not sufficiently monitor controls to ensure compliance with allowable activity requirements. Effect: The Authority is not in compliance with federal regulations related to allowable costs. Repeat Finding: No. Recommendation: We recommend management review the record-keeping practices to ensure that personnel documentation related to employee payrates can be easily accessed. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 011 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 13 of the 40 samples. Exceptions included discrepancies between the HUD-50058 and the uploaded recertification and lack of support provided. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022– 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Beneficiaries must be “low-income families,” as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a(b)(2)) (Section 204(b) of Pub. L. No. 104-134 (42 USC 1437f (note))). The Authority must ensure that housing assisted under the demonstration meets housing quality standards established or approved by HUD (Section 204(c)(3)(E) of Pub. L. No. 104-134 (42 USC 1437f (note))). Condition/Context: A sample of 80 tenant files tested for eligibility over MTW-LRPH (40) and MTW HCV (40) found exceptions in 25 of the 40 MTW-LRPH files tested and 23 of the 40 MTW-HCV files tested. The following MTW-LRPH exceptions were noted: • For 1 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 7 of 40 files tested, support was provided, however, CLA did not observe a HUD-50058 with an effective date prior to, and effective for, the rent payment pulled from rent roll. • For 6 of the 40 files tested, we were unable to recalculate annual family income listed in the tenant file to the backup support provided. We either did not observe backing support to recalculate the annual income listed on the tested HUD-50058 or we did not receive the EIV report. • For 12 of 40 files tested, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 5 of 40 tenant files tested, we did not observe a recertification checklist, or the signed Application for Applied Occupancy completed by the specialist. The following MTW-HCV exceptions were noted: • For 3 of 40 files tested, supporting documentation was not provided. • For 12 of the 40 files tested, we were unable to recalculate annual family income listed in the tenant file to the backup support provided. We either did not observe backing support to recalculate the annual income listed on the tested HUD-50058 or we did not receive the EIV report. • For 10 of the 40 files tested we were unable to determine that recertifications were completed on a biennial basis. • For 2 of the 40 files tested, we were not provided with the quality control checklist signed by a housing assistant specialist. • For 3 of the 40 files tested, the HAP per the HUD-50058 did not agree to the HAP register. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2021-002 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 009 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: PHA's must submit timely GAAP-based unaudited and audited financial information electronically to HUD (see Section 13, Moving to Work (MTW) Agencies Reporting to FASS-PH, of Notice PIH-2012-21 (HA), issued May 10, 2012). Condition/Context: Exception noted for the timeliness of the submission. Questioned Costs: Unable to determine. Cause: The Authority did not submit their financial report to HUD in a timely manner. Effect: The Authority is not in compliance with financial reporting requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that financial reporting is completed and submitted timely. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 010 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: Costs charged to the grant must be allowable in accordance with the criteria contained in 2 CFR Part 200, as applicable. Condition/Context: Exceptions noted in 1 of 40 allowable costs transactions: • For 1 payroll transaction selected, the Authority was unable to substantiate the rate of pay charged to the grant. Questioned Costs: $9,326 known; $1,636,013 projected. Cause: The Authority did not sufficiently monitor controls to ensure compliance with allowable activity requirements. Effect: The Authority is not in compliance with federal regulations related to allowable costs. Repeat Finding: No. Recommendation: We recommend management review the record-keeping practices to ensure that personnel documentation related to employee payrates can be easily accessed. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 011 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 13 of the 40 samples. Exceptions included discrepancies between the HUD-50058 and the uploaded recertification and lack of support provided. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition/Context: Exceptions noted in 35 out of 40 non-MTW HCV files tested: • For 1 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 30 of 40 samples, we were unable to recalculate the income total listed on the HUD-50058 based on the income support provided. • For 8 of 40 samples, we did not observe documentation showing that the head of household was the parent or legal guardian to a dependent for which an allowance was granted or we did not receive documentation for medical expenses. • For 7 of 40 samples, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 7 of 40 samples, we did not observe the "Authorization for Release of Information/Privacy Act Notice form (HUD-9886) singed by the tenant and all members in the household over the age of 18 for the recertification date listed. • For 9 of 40 samples, we did not observe the general release form signed by the tenant and all members in the household over the age of 18, allowing the Authority to obtain information from third parties. • For 10 of 40 samples, we did not observe a recertification checklist, or a substitute application, showing a specialist's signature. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2021-003 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404). Condition/Context: Exceptions noted in 35 of 40 files tested: • For 20 of 40 files tested, the file did not include the results letter to document the failed inspection and the required correction period for any deficiencies. • For 24 of 40 files tested, the file did not include a copy of the completed letter from DCHA specialists notifying the landlord and tenant in writing of the inspection. • For 23 of 40 files tested, the file did not contain a pass inspection report documenting repairs were completed. • For 30 of 40 files tested, the file did not contain documentation that the unit was properly placed under abatement and/or HAP was not paid under the abatement period. • For 25 of 40 files tested, the file did not contain documentation showing whether the tenant failed to correct deficiencies and that the PHA took proper steps to enforce the family obligations. Questioned Costs: Unable to determine. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: The finding is a repeat of finding 2021-004 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) 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). The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition/Context: Exceptions noted in 35 of 40 units: • For 8 of the 40 samples, we did not receive any of the documentation requested. • For 1 of the 40 samples, we were unable to view biennial inspections being performed. • For 1 of the 40 samples, we were unable to view that HQS inspections were completed in accordance with the HCVP Admin plan. • For 27 of the 40 samples, we did not receive the completed letter from the DCHA specialists notifying the landlord and tenant in writing of the inspection. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: The Authority is not in compliance with federal regulations regarding HQS inspections. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 006 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Except as provided in 24 CFR section 982.203 Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition/Context: Exceptions noted in 25 of the 25 samples: • For 25 of the 25 files tested, we were not provided with the selection notice or letter notifying the tenant that they were selected and DCHA will determine eligibility for the program. • For 23 of 25 files tested, we were not provided with a copy of the signed voucher. • For 3 of the 25 files tested, the application or registration form was missing a housing specialist signature. • For 1 of the 25 files tested, we were not provided documentation of the applicant being admitted under a special program. • For 1 of the 25 files tested, we were not provided with supporting documentation for the preference indicated. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with new tenant selection requirements Effect: The Authority is not in compliance with federal regulations regarding the required new tenant selection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained for new tenants. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 007 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition/Context: Exceptions noted in 19 of the 25 samples: • For 19 of the 25 files tested, we were not provided with the neighborhood standards report with the printed date, therefore we were unable to determine that DCHA determined the rent was reasonable prior to move-in in accordance with the administrative plan. • For 4 of the 20 samples, we were not provided with the HAP contract that was signed by a housing specialist/representative. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reasonable rent requirements. Effect: The Authority is not in compliance with federal regulations regarding the required reasonable rent requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 008 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition/Context: Exceptions noted in 18 of the 40 files tested: • For 2 of the 40 files tested, we were not provided with any of the documentation requested. • For 12 of the 40 files tested, we were not provided with the HAP Contract. • For 12 of the 40 files tested, we were not provided with the signed checklist. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with HAP contract and register requirements. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that files are maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 012 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit the HUD-50058 Family Report form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 14 of the 40 samples. We were not provided with support showing that a PIC submission was made for the recertification selected for testing. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with PIC reporting requirements. Effect: The Authority is not in compliance with federal regulations regarding the required submission of all recertifications to the PIC system. Repeat Finding: The finding is a repeat of finding 2021-006 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 013 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition/Context: DCHA did not review utility rate data for each utility category during the fiscal year. Questioned Costs: Unable to determine. Cause: The Authority did not maintain an update utility allowance schedule. Effect: The Authority is not in compliance with federal regulations regarding the requirement of maintaining an updated utility allowance schedule. Repeat Finding: No Recommendation: We recommend the Authority implements controls to ensure that the utility rate data for each utility category is reviewed each year to ensure that an up-to-date utility allowance schedule is maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition/Context: Exceptions noted in 35 out of 40 non-MTW HCV files tested: • For 1 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 30 of 40 samples, we were unable to recalculate the income total listed on the HUD-50058 based on the income support provided. • For 8 of 40 samples, we did not observe documentation showing that the head of household was the parent or legal guardian to a dependent for which an allowance was granted or we did not receive documentation for medical expenses. • For 7 of 40 samples, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 7 of 40 samples, we did not observe the "Authorization for Release of Information/Privacy Act Notice form (HUD-9886) singed by the tenant and all members in the household over the age of 18 for the recertification date listed. • For 9 of 40 samples, we did not observe the general release form signed by the tenant and all members in the household over the age of 18, allowing the Authority to obtain information from third parties. • For 10 of 40 samples, we did not observe a recertification checklist, or a substitute application, showing a specialist's signature. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2021-003 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404). Condition/Context: Exceptions noted in 35 of 40 files tested: • For 20 of 40 files tested, the file did not include the results letter to document the failed inspection and the required correction period for any deficiencies. • For 24 of 40 files tested, the file did not include a copy of the completed letter from DCHA specialists notifying the landlord and tenant in writing of the inspection. • For 23 of 40 files tested, the file did not contain a pass inspection report documenting repairs were completed. • For 30 of 40 files tested, the file did not contain documentation that the unit was properly placed under abatement and/or HAP was not paid under the abatement period. • For 25 of 40 files tested, the file did not contain documentation showing whether the tenant failed to correct deficiencies and that the PHA took proper steps to enforce the family obligations. Questioned Costs: Unable to determine. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: The finding is a repeat of finding 2021-004 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) 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). The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition/Context: Exceptions noted in 35 of 40 units: • For 8 of the 40 samples, we did not receive any of the documentation requested. • For 1 of the 40 samples, we were unable to view biennial inspections being performed. • For 1 of the 40 samples, we were unable to view that HQS inspections were completed in accordance with the HCVP Admin plan. • For 27 of the 40 samples, we did not receive the completed letter from the DCHA specialists notifying the landlord and tenant in writing of the inspection. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: The Authority is not in compliance with federal regulations regarding HQS inspections. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 006 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Except as provided in 24 CFR section 982.203 Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition/Context: Exceptions noted in 25 of the 25 samples: • For 25 of the 25 files tested, we were not provided with the selection notice or letter notifying the tenant that they were selected and DCHA will determine eligibility for the program. • For 23 of 25 files tested, we were not provided with a copy of the signed voucher. • For 3 of the 25 files tested, the application or registration form was missing a housing specialist signature. • For 1 of the 25 files tested, we were not provided documentation of the applicant being admitted under a special program. • For 1 of the 25 files tested, we were not provided with supporting documentation for the preference indicated. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with new tenant selection requirements Effect: The Authority is not in compliance with federal regulations regarding the required new tenant selection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained for new tenants. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 007 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition/Context: Exceptions noted in 19 of the 25 samples: • For 19 of the 25 files tested, we were not provided with the neighborhood standards report with the printed date, therefore we were unable to determine that DCHA determined the rent was reasonable prior to move-in in accordance with the administrative plan. • For 4 of the 20 samples, we were not provided with the HAP contract that was signed by a housing specialist/representative. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reasonable rent requirements. Effect: The Authority is not in compliance with federal regulations regarding the required reasonable rent requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 008 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition/Context: Exceptions noted in 18 of the 40 files tested: • For 2 of the 40 files tested, we were not provided with any of the documentation requested. • For 12 of the 40 files tested, we were not provided with the HAP Contract. • For 12 of the 40 files tested, we were not provided with the signed checklist. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with HAP contract and register requirements. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that files are maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 012 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit the HUD-50058 Family Report form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 14 of the 40 samples. We were not provided with support showing that a PIC submission was made for the recertification selected for testing. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with PIC reporting requirements. Effect: The Authority is not in compliance with federal regulations regarding the required submission of all recertifications to the PIC system. Repeat Finding: The finding is a repeat of finding 2021-006 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 013 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition/Context: DCHA did not review utility rate data for each utility category during the fiscal year. Questioned Costs: Unable to determine. Cause: The Authority did not maintain an update utility allowance schedule. Effect: The Authority is not in compliance with federal regulations regarding the requirement of maintaining an updated utility allowance schedule. Repeat Finding: No Recommendation: We recommend the Authority implements controls to ensure that the utility rate data for each utility category is reviewed each year to ensure that an up-to-date utility allowance schedule is maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

2022– 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Beneficiaries must be “low-income families,” as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a(b)(2)) (Section 204(b) of Pub. L. No. 104-134 (42 USC 1437f (note))). The Authority must ensure that housing assisted under the demonstration meets housing quality standards established or approved by HUD (Section 204(c)(3)(E) of Pub. L. No. 104-134 (42 USC 1437f (note))). Condition/Context: A sample of 80 tenant files tested for eligibility over MTW-LRPH (40) and MTW HCV (40) found exceptions in 25 of the 40 MTW-LRPH files tested and 23 of the 40 MTW-HCV files tested. The following MTW-LRPH exceptions were noted: • For 1 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 7 of 40 files tested, support was provided, however, CLA did not observe a HUD-50058 with an effective date prior to, and effective for, the rent payment pulled from rent roll. • For 6 of the 40 files tested, we were unable to recalculate annual family income listed in the tenant file to the backup support provided. We either did not observe backing support to recalculate the annual income listed on the tested HUD-50058 or we did not receive the EIV report. • For 12 of 40 files tested, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 5 of 40 tenant files tested, we did not observe a recertification checklist, or the signed Application for Applied Occupancy completed by the specialist. The following MTW-HCV exceptions were noted: • For 3 of 40 files tested, supporting documentation was not provided. • For 12 of the 40 files tested, we were unable to recalculate annual family income listed in the tenant file to the backup support provided. We either did not observe backing support to recalculate the annual income listed on the tested HUD-50058 or we did not receive the EIV report. • For 10 of the 40 files tested we were unable to determine that recertifications were completed on a biennial basis. • For 2 of the 40 files tested, we were not provided with the quality control checklist signed by a housing assistant specialist. • For 3 of the 40 files tested, the HAP per the HUD-50058 did not agree to the HAP register. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2021-002 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 009 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: PHA's must submit timely GAAP-based unaudited and audited financial information electronically to HUD (see Section 13, Moving to Work (MTW) Agencies Reporting to FASS-PH, of Notice PIH-2012-21 (HA), issued May 10, 2012). Condition/Context: Exception noted for the timeliness of the submission. Questioned Costs: Unable to determine. Cause: The Authority did not submit their financial report to HUD in a timely manner. Effect: The Authority is not in compliance with financial reporting requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that financial reporting is completed and submitted timely. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 010 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: Costs charged to the grant must be allowable in accordance with the criteria contained in 2 CFR Part 200, as applicable. Condition/Context: Exceptions noted in 1 of 40 allowable costs transactions: • For 1 payroll transaction selected, the Authority was unable to substantiate the rate of pay charged to the grant. Questioned Costs: $9,326 known; $1,636,013 projected. Cause: The Authority did not sufficiently monitor controls to ensure compliance with allowable activity requirements. Effect: The Authority is not in compliance with federal regulations related to allowable costs. Repeat Finding: No. Recommendation: We recommend management review the record-keeping practices to ensure that personnel documentation related to employee payrates can be easily accessed. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 011 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 13 of the 40 samples. Exceptions included discrepancies between the HUD-50058 and the uploaded recertification and lack of support provided. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition/Context: Exceptions noted in 35 out of 40 non-MTW HCV files tested: • For 1 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 30 of 40 samples, we were unable to recalculate the income total listed on the HUD-50058 based on the income support provided. • For 8 of 40 samples, we did not observe documentation showing that the head of household was the parent or legal guardian to a dependent for which an allowance was granted or we did not receive documentation for medical expenses. • For 7 of 40 samples, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 7 of 40 samples, we did not observe the "Authorization for Release of Information/Privacy Act Notice form (HUD-9886) singed by the tenant and all members in the household over the age of 18 for the recertification date listed. • For 9 of 40 samples, we did not observe the general release form signed by the tenant and all members in the household over the age of 18, allowing the Authority to obtain information from third parties. • For 10 of 40 samples, we did not observe a recertification checklist, or a substitute application, showing a specialist's signature. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2021-003 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404). Condition/Context: Exceptions noted in 35 of 40 files tested: • For 20 of 40 files tested, the file did not include the results letter to document the failed inspection and the required correction period for any deficiencies. • For 24 of 40 files tested, the file did not include a copy of the completed letter from DCHA specialists notifying the landlord and tenant in writing of the inspection. • For 23 of 40 files tested, the file did not contain a pass inspection report documenting repairs were completed. • For 30 of 40 files tested, the file did not contain documentation that the unit was properly placed under abatement and/or HAP was not paid under the abatement period. • For 25 of 40 files tested, the file did not contain documentation showing whether the tenant failed to correct deficiencies and that the PHA took proper steps to enforce the family obligations. Questioned Costs: Unable to determine. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: The finding is a repeat of finding 2021-004 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) 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). The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition/Context: Exceptions noted in 35 of 40 units: • For 8 of the 40 samples, we did not receive any of the documentation requested. • For 1 of the 40 samples, we were unable to view biennial inspections being performed. • For 1 of the 40 samples, we were unable to view that HQS inspections were completed in accordance with the HCVP Admin plan. • For 27 of the 40 samples, we did not receive the completed letter from the DCHA specialists notifying the landlord and tenant in writing of the inspection. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: The Authority is not in compliance with federal regulations regarding HQS inspections. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 006 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Except as provided in 24 CFR section 982.203 Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition/Context: Exceptions noted in 25 of the 25 samples: • For 25 of the 25 files tested, we were not provided with the selection notice or letter notifying the tenant that they were selected and DCHA will determine eligibility for the program. • For 23 of 25 files tested, we were not provided with a copy of the signed voucher. • For 3 of the 25 files tested, the application or registration form was missing a housing specialist signature. • For 1 of the 25 files tested, we were not provided documentation of the applicant being admitted under a special program. • For 1 of the 25 files tested, we were not provided with supporting documentation for the preference indicated. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with new tenant selection requirements Effect: The Authority is not in compliance with federal regulations regarding the required new tenant selection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained for new tenants. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 007 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition/Context: Exceptions noted in 19 of the 25 samples: • For 19 of the 25 files tested, we were not provided with the neighborhood standards report with the printed date, therefore we were unable to determine that DCHA determined the rent was reasonable prior to move-in in accordance with the administrative plan. • For 4 of the 20 samples, we were not provided with the HAP contract that was signed by a housing specialist/representative. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reasonable rent requirements. Effect: The Authority is not in compliance with federal regulations regarding the required reasonable rent requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 008 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition/Context: Exceptions noted in 18 of the 40 files tested: • For 2 of the 40 files tested, we were not provided with any of the documentation requested. • For 12 of the 40 files tested, we were not provided with the HAP Contract. • For 12 of the 40 files tested, we were not provided with the signed checklist. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with HAP contract and register requirements. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that files are maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 012 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit the HUD-50058 Family Report form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 14 of the 40 samples. We were not provided with support showing that a PIC submission was made for the recertification selected for testing. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with PIC reporting requirements. Effect: The Authority is not in compliance with federal regulations regarding the required submission of all recertifications to the PIC system. Repeat Finding: The finding is a repeat of finding 2021-006 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 013 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition/Context: DCHA did not review utility rate data for each utility category during the fiscal year. Questioned Costs: Unable to determine. Cause: The Authority did not maintain an update utility allowance schedule. Effect: The Authority is not in compliance with federal regulations regarding the requirement of maintaining an updated utility allowance schedule. Repeat Finding: No Recommendation: We recommend the Authority implements controls to ensure that the utility rate data for each utility category is reviewed each year to ensure that an up-to-date utility allowance schedule is maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition/Context: Exceptions noted in 35 out of 40 non-MTW HCV files tested: • For 1 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 30 of 40 samples, we were unable to recalculate the income total listed on the HUD-50058 based on the income support provided. • For 8 of 40 samples, we did not observe documentation showing that the head of household was the parent or legal guardian to a dependent for which an allowance was granted or we did not receive documentation for medical expenses. • For 7 of 40 samples, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 7 of 40 samples, we did not observe the "Authorization for Release of Information/Privacy Act Notice form (HUD-9886) singed by the tenant and all members in the household over the age of 18 for the recertification date listed. • For 9 of 40 samples, we did not observe the general release form signed by the tenant and all members in the household over the age of 18, allowing the Authority to obtain information from third parties. • For 10 of 40 samples, we did not observe a recertification checklist, or a substitute application, showing a specialist's signature. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2021-003 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404). Condition/Context: Exceptions noted in 35 of 40 files tested: • For 20 of 40 files tested, the file did not include the results letter to document the failed inspection and the required correction period for any deficiencies. • For 24 of 40 files tested, the file did not include a copy of the completed letter from DCHA specialists notifying the landlord and tenant in writing of the inspection. • For 23 of 40 files tested, the file did not contain a pass inspection report documenting repairs were completed. • For 30 of 40 files tested, the file did not contain documentation that the unit was properly placed under abatement and/or HAP was not paid under the abatement period. • For 25 of 40 files tested, the file did not contain documentation showing whether the tenant failed to correct deficiencies and that the PHA took proper steps to enforce the family obligations. Questioned Costs: Unable to determine. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: The finding is a repeat of finding 2021-004 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) 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). The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition/Context: Exceptions noted in 35 of 40 units: • For 8 of the 40 samples, we did not receive any of the documentation requested. • For 1 of the 40 samples, we were unable to view biennial inspections being performed. • For 1 of the 40 samples, we were unable to view that HQS inspections were completed in accordance with the HCVP Admin plan. • For 27 of the 40 samples, we did not receive the completed letter from the DCHA specialists notifying the landlord and tenant in writing of the inspection. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: The Authority is not in compliance with federal regulations regarding HQS inspections. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 006 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Except as provided in 24 CFR section 982.203 Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition/Context: Exceptions noted in 25 of the 25 samples: • For 25 of the 25 files tested, we were not provided with the selection notice or letter notifying the tenant that they were selected and DCHA will determine eligibility for the program. • For 23 of 25 files tested, we were not provided with a copy of the signed voucher. • For 3 of the 25 files tested, the application or registration form was missing a housing specialist signature. • For 1 of the 25 files tested, we were not provided documentation of the applicant being admitted under a special program. • For 1 of the 25 files tested, we were not provided with supporting documentation for the preference indicated. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with new tenant selection requirements Effect: The Authority is not in compliance with federal regulations regarding the required new tenant selection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained for new tenants. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 007 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition/Context: Exceptions noted in 19 of the 25 samples: • For 19 of the 25 files tested, we were not provided with the neighborhood standards report with the printed date, therefore we were unable to determine that DCHA determined the rent was reasonable prior to move-in in accordance with the administrative plan. • For 4 of the 20 samples, we were not provided with the HAP contract that was signed by a housing specialist/representative. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reasonable rent requirements. Effect: The Authority is not in compliance with federal regulations regarding the required reasonable rent requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 008 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition/Context: Exceptions noted in 18 of the 40 files tested: • For 2 of the 40 files tested, we were not provided with any of the documentation requested. • For 12 of the 40 files tested, we were not provided with the HAP Contract. • For 12 of the 40 files tested, we were not provided with the signed checklist. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with HAP contract and register requirements. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that files are maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 012 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit the HUD-50058 Family Report form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 14 of the 40 samples. We were not provided with support showing that a PIC submission was made for the recertification selected for testing. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with PIC reporting requirements. Effect: The Authority is not in compliance with federal regulations regarding the required submission of all recertifications to the PIC system. Repeat Finding: The finding is a repeat of finding 2021-006 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 013 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition/Context: DCHA did not review utility rate data for each utility category during the fiscal year. Questioned Costs: Unable to determine. Cause: The Authority did not maintain an update utility allowance schedule. Effect: The Authority is not in compliance with federal regulations regarding the requirement of maintaining an updated utility allowance schedule. Repeat Finding: No Recommendation: We recommend the Authority implements controls to ensure that the utility rate data for each utility category is reviewed each year to ensure that an up-to-date utility allowance schedule is maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

2022– 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Beneficiaries must be “low-income families,” as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a(b)(2)) (Section 204(b) of Pub. L. No. 104-134 (42 USC 1437f (note))). The Authority must ensure that housing assisted under the demonstration meets housing quality standards established or approved by HUD (Section 204(c)(3)(E) of Pub. L. No. 104-134 (42 USC 1437f (note))). Condition/Context: A sample of 80 tenant files tested for eligibility over MTW-LRPH (40) and MTW HCV (40) found exceptions in 25 of the 40 MTW-LRPH files tested and 23 of the 40 MTW-HCV files tested. The following MTW-LRPH exceptions were noted: • For 1 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 7 of 40 files tested, support was provided, however, CLA did not observe a HUD-50058 with an effective date prior to, and effective for, the rent payment pulled from rent roll. • For 6 of the 40 files tested, we were unable to recalculate annual family income listed in the tenant file to the backup support provided. We either did not observe backing support to recalculate the annual income listed on the tested HUD-50058 or we did not receive the EIV report. • For 12 of 40 files tested, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 5 of 40 tenant files tested, we did not observe a recertification checklist, or the signed Application for Applied Occupancy completed by the specialist. The following MTW-HCV exceptions were noted: • For 3 of 40 files tested, supporting documentation was not provided. • For 12 of the 40 files tested, we were unable to recalculate annual family income listed in the tenant file to the backup support provided. We either did not observe backing support to recalculate the annual income listed on the tested HUD-50058 or we did not receive the EIV report. • For 10 of the 40 files tested we were unable to determine that recertifications were completed on a biennial basis. • For 2 of the 40 files tested, we were not provided with the quality control checklist signed by a housing assistant specialist. • For 3 of the 40 files tested, the HAP per the HUD-50058 did not agree to the HAP register. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2021-002 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 009 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: PHA's must submit timely GAAP-based unaudited and audited financial information electronically to HUD (see Section 13, Moving to Work (MTW) Agencies Reporting to FASS-PH, of Notice PIH-2012-21 (HA), issued May 10, 2012). Condition/Context: Exception noted for the timeliness of the submission. Questioned Costs: Unable to determine. Cause: The Authority did not submit their financial report to HUD in a timely manner. Effect: The Authority is not in compliance with financial reporting requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that financial reporting is completed and submitted timely. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 010 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: Costs charged to the grant must be allowable in accordance with the criteria contained in 2 CFR Part 200, as applicable. Condition/Context: Exceptions noted in 1 of 40 allowable costs transactions: • For 1 payroll transaction selected, the Authority was unable to substantiate the rate of pay charged to the grant. Questioned Costs: $9,326 known; $1,636,013 projected. Cause: The Authority did not sufficiently monitor controls to ensure compliance with allowable activity requirements. Effect: The Authority is not in compliance with federal regulations related to allowable costs. Repeat Finding: No. Recommendation: We recommend management review the record-keeping practices to ensure that personnel documentation related to employee payrates can be easily accessed. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 011 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 13 of the 40 samples. Exceptions included discrepancies between the HUD-50058 and the uploaded recertification and lack of support provided. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022– 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Beneficiaries must be “low-income families,” as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a(b)(2)) (Section 204(b) of Pub. L. No. 104-134 (42 USC 1437f (note))). The Authority must ensure that housing assisted under the demonstration meets housing quality standards established or approved by HUD (Section 204(c)(3)(E) of Pub. L. No. 104-134 (42 USC 1437f (note))). Condition/Context: A sample of 80 tenant files tested for eligibility over MTW-LRPH (40) and MTW HCV (40) found exceptions in 25 of the 40 MTW-LRPH files tested and 23 of the 40 MTW-HCV files tested. The following MTW-LRPH exceptions were noted: • For 1 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 7 of 40 files tested, support was provided, however, CLA did not observe a HUD-50058 with an effective date prior to, and effective for, the rent payment pulled from rent roll. • For 6 of the 40 files tested, we were unable to recalculate annual family income listed in the tenant file to the backup support provided. We either did not observe backing support to recalculate the annual income listed on the tested HUD-50058 or we did not receive the EIV report. • For 12 of 40 files tested, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 5 of 40 tenant files tested, we did not observe a recertification checklist, or the signed Application for Applied Occupancy completed by the specialist. The following MTW-HCV exceptions were noted: • For 3 of 40 files tested, supporting documentation was not provided. • For 12 of the 40 files tested, we were unable to recalculate annual family income listed in the tenant file to the backup support provided. We either did not observe backing support to recalculate the annual income listed on the tested HUD-50058 or we did not receive the EIV report. • For 10 of the 40 files tested we were unable to determine that recertifications were completed on a biennial basis. • For 2 of the 40 files tested, we were not provided with the quality control checklist signed by a housing assistant specialist. • For 3 of the 40 files tested, the HAP per the HUD-50058 did not agree to the HAP register. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2021-002 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 009 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: PHA's must submit timely GAAP-based unaudited and audited financial information electronically to HUD (see Section 13, Moving to Work (MTW) Agencies Reporting to FASS-PH, of Notice PIH-2012-21 (HA), issued May 10, 2012). Condition/Context: Exception noted for the timeliness of the submission. Questioned Costs: Unable to determine. Cause: The Authority did not submit their financial report to HUD in a timely manner. Effect: The Authority is not in compliance with financial reporting requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that financial reporting is completed and submitted timely. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 010 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: Costs charged to the grant must be allowable in accordance with the criteria contained in 2 CFR Part 200, as applicable. Condition/Context: Exceptions noted in 1 of 40 allowable costs transactions: • For 1 payroll transaction selected, the Authority was unable to substantiate the rate of pay charged to the grant. Questioned Costs: $9,326 known; $1,636,013 projected. Cause: The Authority did not sufficiently monitor controls to ensure compliance with allowable activity requirements. Effect: The Authority is not in compliance with federal regulations related to allowable costs. Repeat Finding: No. Recommendation: We recommend management review the record-keeping practices to ensure that personnel documentation related to employee payrates can be easily accessed. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 011 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 13 of the 40 samples. Exceptions included discrepancies between the HUD-50058 and the uploaded recertification and lack of support provided. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition/Context: Exceptions noted in 35 out of 40 non-MTW HCV files tested: • For 1 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 30 of 40 samples, we were unable to recalculate the income total listed on the HUD-50058 based on the income support provided. • For 8 of 40 samples, we did not observe documentation showing that the head of household was the parent or legal guardian to a dependent for which an allowance was granted or we did not receive documentation for medical expenses. • For 7 of 40 samples, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 7 of 40 samples, we did not observe the "Authorization for Release of Information/Privacy Act Notice form (HUD-9886) singed by the tenant and all members in the household over the age of 18 for the recertification date listed. • For 9 of 40 samples, we did not observe the general release form signed by the tenant and all members in the household over the age of 18, allowing the Authority to obtain information from third parties. • For 10 of 40 samples, we did not observe a recertification checklist, or a substitute application, showing a specialist's signature. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2021-003 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404). Condition/Context: Exceptions noted in 35 of 40 files tested: • For 20 of 40 files tested, the file did not include the results letter to document the failed inspection and the required correction period for any deficiencies. • For 24 of 40 files tested, the file did not include a copy of the completed letter from DCHA specialists notifying the landlord and tenant in writing of the inspection. • For 23 of 40 files tested, the file did not contain a pass inspection report documenting repairs were completed. • For 30 of 40 files tested, the file did not contain documentation that the unit was properly placed under abatement and/or HAP was not paid under the abatement period. • For 25 of 40 files tested, the file did not contain documentation showing whether the tenant failed to correct deficiencies and that the PHA took proper steps to enforce the family obligations. Questioned Costs: Unable to determine. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: The finding is a repeat of finding 2021-004 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) 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). The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition/Context: Exceptions noted in 35 of 40 units: • For 8 of the 40 samples, we did not receive any of the documentation requested. • For 1 of the 40 samples, we were unable to view biennial inspections being performed. • For 1 of the 40 samples, we were unable to view that HQS inspections were completed in accordance with the HCVP Admin plan. • For 27 of the 40 samples, we did not receive the completed letter from the DCHA specialists notifying the landlord and tenant in writing of the inspection. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: The Authority is not in compliance with federal regulations regarding HQS inspections. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 006 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Except as provided in 24 CFR section 982.203 Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition/Context: Exceptions noted in 25 of the 25 samples: • For 25 of the 25 files tested, we were not provided with the selection notice or letter notifying the tenant that they were selected and DCHA will determine eligibility for the program. • For 23 of 25 files tested, we were not provided with a copy of the signed voucher. • For 3 of the 25 files tested, the application or registration form was missing a housing specialist signature. • For 1 of the 25 files tested, we were not provided documentation of the applicant being admitted under a special program. • For 1 of the 25 files tested, we were not provided with supporting documentation for the preference indicated. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with new tenant selection requirements Effect: The Authority is not in compliance with federal regulations regarding the required new tenant selection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained for new tenants. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 007 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition/Context: Exceptions noted in 19 of the 25 samples: • For 19 of the 25 files tested, we were not provided with the neighborhood standards report with the printed date, therefore we were unable to determine that DCHA determined the rent was reasonable prior to move-in in accordance with the administrative plan. • For 4 of the 20 samples, we were not provided with the HAP contract that was signed by a housing specialist/representative. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reasonable rent requirements. Effect: The Authority is not in compliance with federal regulations regarding the required reasonable rent requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 008 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition/Context: Exceptions noted in 18 of the 40 files tested: • For 2 of the 40 files tested, we were not provided with any of the documentation requested. • For 12 of the 40 files tested, we were not provided with the HAP Contract. • For 12 of the 40 files tested, we were not provided with the signed checklist. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with HAP contract and register requirements. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that files are maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 012 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit the HUD-50058 Family Report form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 14 of the 40 samples. We were not provided with support showing that a PIC submission was made for the recertification selected for testing. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with PIC reporting requirements. Effect: The Authority is not in compliance with federal regulations regarding the required submission of all recertifications to the PIC system. Repeat Finding: The finding is a repeat of finding 2021-006 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 013 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition/Context: DCHA did not review utility rate data for each utility category during the fiscal year. Questioned Costs: Unable to determine. Cause: The Authority did not maintain an update utility allowance schedule. Effect: The Authority is not in compliance with federal regulations regarding the requirement of maintaining an updated utility allowance schedule. Repeat Finding: No Recommendation: We recommend the Authority implements controls to ensure that the utility rate data for each utility category is reviewed each year to ensure that an up-to-date utility allowance schedule is maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition/Context: Exceptions noted in 35 out of 40 non-MTW HCV files tested: • For 1 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 30 of 40 samples, we were unable to recalculate the income total listed on the HUD-50058 based on the income support provided. • For 8 of 40 samples, we did not observe documentation showing that the head of household was the parent or legal guardian to a dependent for which an allowance was granted or we did not receive documentation for medical expenses. • For 7 of 40 samples, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 7 of 40 samples, we did not observe the "Authorization for Release of Information/Privacy Act Notice form (HUD-9886) singed by the tenant and all members in the household over the age of 18 for the recertification date listed. • For 9 of 40 samples, we did not observe the general release form signed by the tenant and all members in the household over the age of 18, allowing the Authority to obtain information from third parties. • For 10 of 40 samples, we did not observe a recertification checklist, or a substitute application, showing a specialist's signature. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2021-003 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404). Condition/Context: Exceptions noted in 35 of 40 files tested: • For 20 of 40 files tested, the file did not include the results letter to document the failed inspection and the required correction period for any deficiencies. • For 24 of 40 files tested, the file did not include a copy of the completed letter from DCHA specialists notifying the landlord and tenant in writing of the inspection. • For 23 of 40 files tested, the file did not contain a pass inspection report documenting repairs were completed. • For 30 of 40 files tested, the file did not contain documentation that the unit was properly placed under abatement and/or HAP was not paid under the abatement period. • For 25 of 40 files tested, the file did not contain documentation showing whether the tenant failed to correct deficiencies and that the PHA took proper steps to enforce the family obligations. Questioned Costs: Unable to determine. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: The finding is a repeat of finding 2021-004 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) 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). The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition/Context: Exceptions noted in 35 of 40 units: • For 8 of the 40 samples, we did not receive any of the documentation requested. • For 1 of the 40 samples, we were unable to view biennial inspections being performed. • For 1 of the 40 samples, we were unable to view that HQS inspections were completed in accordance with the HCVP Admin plan. • For 27 of the 40 samples, we did not receive the completed letter from the DCHA specialists notifying the landlord and tenant in writing of the inspection. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: The Authority is not in compliance with federal regulations regarding HQS inspections. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 006 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Except as provided in 24 CFR section 982.203 Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition/Context: Exceptions noted in 25 of the 25 samples: • For 25 of the 25 files tested, we were not provided with the selection notice or letter notifying the tenant that they were selected and DCHA will determine eligibility for the program. • For 23 of 25 files tested, we were not provided with a copy of the signed voucher. • For 3 of the 25 files tested, the application or registration form was missing a housing specialist signature. • For 1 of the 25 files tested, we were not provided documentation of the applicant being admitted under a special program. • For 1 of the 25 files tested, we were not provided with supporting documentation for the preference indicated. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with new tenant selection requirements Effect: The Authority is not in compliance with federal regulations regarding the required new tenant selection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained for new tenants. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 007 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition/Context: Exceptions noted in 19 of the 25 samples: • For 19 of the 25 files tested, we were not provided with the neighborhood standards report with the printed date, therefore we were unable to determine that DCHA determined the rent was reasonable prior to move-in in accordance with the administrative plan. • For 4 of the 20 samples, we were not provided with the HAP contract that was signed by a housing specialist/representative. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reasonable rent requirements. Effect: The Authority is not in compliance with federal regulations regarding the required reasonable rent requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 008 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition/Context: Exceptions noted in 18 of the 40 files tested: • For 2 of the 40 files tested, we were not provided with any of the documentation requested. • For 12 of the 40 files tested, we were not provided with the HAP Contract. • For 12 of the 40 files tested, we were not provided with the signed checklist. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with HAP contract and register requirements. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that files are maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 012 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit the HUD-50058 Family Report form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 14 of the 40 samples. We were not provided with support showing that a PIC submission was made for the recertification selected for testing. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with PIC reporting requirements. Effect: The Authority is not in compliance with federal regulations regarding the required submission of all recertifications to the PIC system. Repeat Finding: The finding is a repeat of finding 2021-006 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 013 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition/Context: DCHA did not review utility rate data for each utility category during the fiscal year. Questioned Costs: Unable to determine. Cause: The Authority did not maintain an update utility allowance schedule. Effect: The Authority is not in compliance with federal regulations regarding the requirement of maintaining an updated utility allowance schedule. Repeat Finding: No Recommendation: We recommend the Authority implements controls to ensure that the utility rate data for each utility category is reviewed each year to ensure that an up-to-date utility allowance schedule is maintained. Views of Responsible Officials: There is no disagreement with the audit finding.