Audit 360910

Finding 2024-021 U.S. Department of Housing and Urban Development (HUD) AL No. 14.881 Moving to Work Demonstration Material Weakness in Internal Controls over Compliance for Eligibility Repeat Finding: Yes; 2023-002 Condition: • For 11 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period. • For 8 out of 60 beneficiaries selected for eligibility, we were unable to recalculate annual family income listed in the tenant file based up the support provided by management. • For 4 out of 60 beneficiaries selected for eligibility, we were not provided a HUD-50058. Criteria: 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))). Questioned Costs Unknown. 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. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-021 U.S. Department of Housing and Urban Development (HUD) AL No. 14.881 Moving to Work Demonstration Material Weakness in Internal Controls over Compliance for Eligibility Repeat Finding: Yes; 2023-002 Condition: • For 11 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period. • For 8 out of 60 beneficiaries selected for eligibility, we were unable to recalculate annual family income listed in the tenant file based up the support provided by management. • For 4 out of 60 beneficiaries selected for eligibility, we were not provided a HUD-50058. Criteria: 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))). Questioned Costs Unknown. 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. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-021 U.S. Department of Housing and Urban Development (HUD) AL No. 14.881 Moving to Work Demonstration Material Weakness in Internal Controls over Compliance for Eligibility Repeat Finding: Yes; 2023-002 Condition: • For 11 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period. • For 8 out of 60 beneficiaries selected for eligibility, we were unable to recalculate annual family income listed in the tenant file based up the support provided by management. • For 4 out of 60 beneficiaries selected for eligibility, we were not provided a HUD-50058. Criteria: 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))). Questioned Costs Unknown. 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. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-022 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Eligibility Repeat Finding: Yes; 2023-003 Condition: • For 13 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period. • For 2 out of 60 beneficiaries selected for eligibility, we did not observe 3rd party verification of reported income. Criteria 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). Questioned Costs Unknown. 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 or HAP may have been miscalculated due to using incorrect information in the recalculations. Tenant recertifications were not shown to be performed on a timely basis. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Condition • For 47 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 7 of 60 files tested, the unit failed reinspection and there was no documentation that the unit was properly placed under abatement. Criteria 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). Questioned Costs Unknown. Cause The Authority did not reinspect or abate units timely. Effect The Authority is not in compliance with HQS enforcement requirements. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated. Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Condition • For 8 of the 60 samples, we were unable to view biennial inspections being performed. Criteria 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)). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that HOS inspections are completed in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Condition • For 47 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 7 of 60 files tested, the unit failed reinspection and there was no documentation that the unit was properly placed under abatement. Criteria 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). Questioned Costs Unknown. Cause The Authority did not reinspect or abate units timely. Effect The Authority is not in compliance with HQS enforcement requirements. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated. Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Condition • For 8 of the 60 samples, we were unable to view biennial inspections being performed. Criteria 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)). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that HOS inspections are completed in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding: 2024-025 U.S. Department of Housing and Urban Development AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance/ Material Noncompliance for Special Tests and Provisions – Rent Reasonableness Repeat Finding: Yes 2023-007 Condition • For 3 of the 60 files tested, the amount documented as the reasonable rent was less than the rent to the owner noted on the HUD-50058. • For 7 of the 60 files tested, we were not provided with proper documentation to determine that the rent comparability was performed. Criteria 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). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-022 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Eligibility Repeat Finding: Yes; 2023-003 Condition: • For 13 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period. • For 2 out of 60 beneficiaries selected for eligibility, we did not observe 3rd party verification of reported income. Criteria 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). Questioned Costs Unknown. 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 or HAP may have been miscalculated due to using incorrect information in the recalculations. Tenant recertifications were not shown to be performed on a timely basis. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Condition • For 47 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 7 of 60 files tested, the unit failed reinspection and there was no documentation that the unit was properly placed under abatement. Criteria 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). Questioned Costs Unknown. Cause The Authority did not reinspect or abate units timely. Effect The Authority is not in compliance with HQS enforcement requirements. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated. Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Condition • For 8 of the 60 samples, we were unable to view biennial inspections being performed. Criteria 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)). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that HOS inspections are completed in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Condition • For 47 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 7 of 60 files tested, the unit failed reinspection and there was no documentation that the unit was properly placed under abatement. Criteria 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). Questioned Costs Unknown. Cause The Authority did not reinspect or abate units timely. Effect The Authority is not in compliance with HQS enforcement requirements. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated. Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Condition • For 8 of the 60 samples, we were unable to view biennial inspections being performed. Criteria 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)). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that HOS inspections are completed in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding: 2024-025 U.S. Department of Housing and Urban Development AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance/ Material Noncompliance for Special Tests and Provisions – Rent Reasonableness Repeat Finding: Yes 2023-007 Condition • For 3 of the 60 files tested, the amount documented as the reasonable rent was less than the rent to the owner noted on the HUD-50058. • For 7 of the 60 files tested, we were not provided with proper documentation to determine that the rent comparability was performed. Criteria 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). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-022 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Eligibility Repeat Finding: Yes; 2023-003 Condition: • For 13 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period. • For 2 out of 60 beneficiaries selected for eligibility, we did not observe 3rd party verification of reported income. Criteria 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). Questioned Costs Unknown. 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 or HAP may have been miscalculated due to using incorrect information in the recalculations. Tenant recertifications were not shown to be performed on a timely basis. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Condition • For 47 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 7 of 60 files tested, the unit failed reinspection and there was no documentation that the unit was properly placed under abatement. Criteria 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). Questioned Costs Unknown. Cause The Authority did not reinspect or abate units timely. Effect The Authority is not in compliance with HQS enforcement requirements. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated. Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Condition • For 8 of the 60 samples, we were unable to view biennial inspections being performed. Criteria 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)). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that HOS inspections are completed in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Condition • For 47 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 7 of 60 files tested, the unit failed reinspection and there was no documentation that the unit was properly placed under abatement. Criteria 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). Questioned Costs Unknown. Cause The Authority did not reinspect or abate units timely. Effect The Authority is not in compliance with HQS enforcement requirements. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated. Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Condition • For 8 of the 60 samples, we were unable to view biennial inspections being performed. Criteria 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)). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that HOS inspections are completed in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding: 2024-025 U.S. Department of Housing and Urban Development AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance/ Material Noncompliance for Special Tests and Provisions – Rent Reasonableness Repeat Finding: Yes 2023-007 Condition • For 3 of the 60 files tested, the amount documented as the reasonable rent was less than the rent to the owner noted on the HUD-50058. • For 7 of the 60 files tested, we were not provided with proper documentation to determine that the rent comparability was performed. Criteria 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). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-021 U.S. Department of Housing and Urban Development (HUD) AL No. 14.881 Moving to Work Demonstration Material Weakness in Internal Controls over Compliance for Eligibility Repeat Finding: Yes; 2023-002 Condition: • For 11 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period. • For 8 out of 60 beneficiaries selected for eligibility, we were unable to recalculate annual family income listed in the tenant file based up the support provided by management. • For 4 out of 60 beneficiaries selected for eligibility, we were not provided a HUD-50058. Criteria: 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))). Questioned Costs Unknown. 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. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-021 U.S. Department of Housing and Urban Development (HUD) AL No. 14.881 Moving to Work Demonstration Material Weakness in Internal Controls over Compliance for Eligibility Repeat Finding: Yes; 2023-002 Condition: • For 11 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period. • For 8 out of 60 beneficiaries selected for eligibility, we were unable to recalculate annual family income listed in the tenant file based up the support provided by management. • For 4 out of 60 beneficiaries selected for eligibility, we were not provided a HUD-50058. Criteria: 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))). Questioned Costs Unknown. 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. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-021 U.S. Department of Housing and Urban Development (HUD) AL No. 14.881 Moving to Work Demonstration Material Weakness in Internal Controls over Compliance for Eligibility Repeat Finding: Yes; 2023-002 Condition: • For 11 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period. • For 8 out of 60 beneficiaries selected for eligibility, we were unable to recalculate annual family income listed in the tenant file based up the support provided by management. • For 4 out of 60 beneficiaries selected for eligibility, we were not provided a HUD-50058. Criteria: 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))). Questioned Costs Unknown. 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. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-022 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Eligibility Repeat Finding: Yes; 2023-003 Condition: • For 13 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period. • For 2 out of 60 beneficiaries selected for eligibility, we did not observe 3rd party verification of reported income. Criteria 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). Questioned Costs Unknown. 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 or HAP may have been miscalculated due to using incorrect information in the recalculations. Tenant recertifications were not shown to be performed on a timely basis. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Condition • For 47 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 7 of 60 files tested, the unit failed reinspection and there was no documentation that the unit was properly placed under abatement. Criteria 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). Questioned Costs Unknown. Cause The Authority did not reinspect or abate units timely. Effect The Authority is not in compliance with HQS enforcement requirements. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated. Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Condition • For 8 of the 60 samples, we were unable to view biennial inspections being performed. Criteria 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)). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that HOS inspections are completed in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Condition • For 47 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 7 of 60 files tested, the unit failed reinspection and there was no documentation that the unit was properly placed under abatement. Criteria 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). Questioned Costs Unknown. Cause The Authority did not reinspect or abate units timely. Effect The Authority is not in compliance with HQS enforcement requirements. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated. Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Condition • For 8 of the 60 samples, we were unable to view biennial inspections being performed. Criteria 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)). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that HOS inspections are completed in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding: 2024-025 U.S. Department of Housing and Urban Development AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance/ Material Noncompliance for Special Tests and Provisions – Rent Reasonableness Repeat Finding: Yes 2023-007 Condition • For 3 of the 60 files tested, the amount documented as the reasonable rent was less than the rent to the owner noted on the HUD-50058. • For 7 of the 60 files tested, we were not provided with proper documentation to determine that the rent comparability was performed. Criteria 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). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-022 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Eligibility Repeat Finding: Yes; 2023-003 Condition: • For 13 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period. • For 2 out of 60 beneficiaries selected for eligibility, we did not observe 3rd party verification of reported income. Criteria 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). Questioned Costs Unknown. 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 or HAP may have been miscalculated due to using incorrect information in the recalculations. Tenant recertifications were not shown to be performed on a timely basis. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Condition • For 47 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 7 of 60 files tested, the unit failed reinspection and there was no documentation that the unit was properly placed under abatement. Criteria 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). Questioned Costs Unknown. Cause The Authority did not reinspect or abate units timely. Effect The Authority is not in compliance with HQS enforcement requirements. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated. Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Condition • For 8 of the 60 samples, we were unable to view biennial inspections being performed. Criteria 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)). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that HOS inspections are completed in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Condition • For 47 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 7 of 60 files tested, the unit failed reinspection and there was no documentation that the unit was properly placed under abatement. Criteria 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). Questioned Costs Unknown. Cause The Authority did not reinspect or abate units timely. Effect The Authority is not in compliance with HQS enforcement requirements. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated. Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Condition • For 8 of the 60 samples, we were unable to view biennial inspections being performed. Criteria 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)). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that HOS inspections are completed in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding: 2024-025 U.S. Department of Housing and Urban Development AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance/ Material Noncompliance for Special Tests and Provisions – Rent Reasonableness Repeat Finding: Yes 2023-007 Condition • For 3 of the 60 files tested, the amount documented as the reasonable rent was less than the rent to the owner noted on the HUD-50058. • For 7 of the 60 files tested, we were not provided with proper documentation to determine that the rent comparability was performed. Criteria 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). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-022 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Eligibility Repeat Finding: Yes; 2023-003 Condition: • For 13 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period. • For 2 out of 60 beneficiaries selected for eligibility, we did not observe 3rd party verification of reported income. Criteria 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). Questioned Costs Unknown. 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 or HAP may have been miscalculated due to using incorrect information in the recalculations. Tenant recertifications were not shown to be performed on a timely basis. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Condition • For 47 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 7 of 60 files tested, the unit failed reinspection and there was no documentation that the unit was properly placed under abatement. Criteria 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). Questioned Costs Unknown. Cause The Authority did not reinspect or abate units timely. Effect The Authority is not in compliance with HQS enforcement requirements. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated. Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Condition • For 8 of the 60 samples, we were unable to view biennial inspections being performed. Criteria 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)). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that HOS inspections are completed in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Condition • For 47 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 7 of 60 files tested, the unit failed reinspection and there was no documentation that the unit was properly placed under abatement. Criteria 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). Questioned Costs Unknown. Cause The Authority did not reinspect or abate units timely. Effect The Authority is not in compliance with HQS enforcement requirements. 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. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated. Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Condition • For 8 of the 60 samples, we were unable to view biennial inspections being performed. Criteria 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)). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that HOS inspections are completed in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding: 2024-025 U.S. Department of Housing and Urban Development AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance/ Material Noncompliance for Special Tests and Provisions – Rent Reasonableness Repeat Finding: Yes 2023-007 Condition • For 3 of the 60 files tested, the amount documented as the reasonable rent was less than the rent to the owner noted on the HUD-50058. • For 7 of the 60 files tested, we were not provided with proper documentation to determine that the rent comparability was performed. Criteria 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). Questioned Costs Unknown. 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. Recommendation We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.