Corrective Action Plans

Finding 1201166 (2025-002)

Material Weakness 2025

VA

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – PIC Submissions Recommendation: We recommend that the Authority review its Agent’s process for uploading data to the PIC system to ensure each HUD-50058 recertification gets submitted timely and accurately. Explanation of disagr...

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – PIC Submissions Recommendation: We recommend that the Authority review its Agent’s process for uploading data to the PIC system to ensure each HUD-50058 recertification gets submitted timely and accurately. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority is currently evaluating improvements to its data submission and reconciliation processes. This evaluation includes reviewing peer agency approaches to transmission monitoring, data verification, and centralized oversight controls. In addition, Virginia Housing has engaged a third-party consultant to assist with PIC submission oversight, reconciliation, and process refinement. The consultant’s involvement has supported a significant reduction in late and missing submissions and is helping to strengthen internal monitoring practices. Name of the contact person responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives Planned completion date for corrective action plan: September 30, 2026

View Audit 395856

Finding 1201163 (2025-001)

Material Weakness 2025

Virginia Housing Development Authority

VA

HUD Housing Programs Subrecipient Monitoring Internal Control / Segregation of Duties

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – Eligibility Recommendation: We recommend that the Authority review its Agent’s internal controls and policies related to HUD tenant eligibility requirements to ensure that all req...

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – Eligibility Recommendation: We recommend that the Authority review its Agent’s internal controls and policies related to HUD tenant eligibility requirements to ensure that all required documentation is obtained and maintained at the time of recertification. We further recommend that the Authority implements uniform documentation standards and requirements across all local housing agencies (LHAs) and agents of the Authority. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Virginia Housing is evaluating enhancements to its quality control framework. This evaluation includes reviewing best practices from peer agencies with strong compliance outcomes and consistent audit performance. Many of these agencies utilize more structured oversight models that provide independent file review functions while maintaining coordination with program operations. Virginia Housing is currently assessing options that may include: - Expanding centralized quality control review functions - Increasing file sampling and review throughout the year - Improving monitoring of HUD-9886 and third-party verification documentation Implementation details will be finalized following this evaluation process and may include structural adjustments, enhanced tools, or expanded oversight protocols. Name of the contact person responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives Planned completion date for corrective action plan: December 31, 2026

View Audit 395856

Finding 1200668 (2025-001)

Material Weakness 2025

Corporacion Del Proyecto Enlance Del Cano Martin Pena

PR

Subrecipient Monitoring HUD Housing Programs Program Income

During the period that was reported on the finding, the manager in charge of the CDGB-MIT program was taking on additional workload while carrying out onboarding and training procedures for the program coordinator that would be assigned to assist with carrying out both programatic and administrative...

During the period that was reported on the finding, the manager in charge of the CDGB-MIT program was taking on additional workload while carrying out onboarding and training procedures for the program coordinator that would be assigned to assist with carrying out both programatic and administrative duties under the grant. Although the coordinator's training period concurred with the report's deadline, causing the one-day delay in submitting the required information, subsequent reports are being completed in a timely manner due to the addition of program personnel.

View Audit 395706

Finding 1200648 (2025-047)

Material Weakness 2025

State of Washington C/o Office of Financial Management

WA

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles

Finding Number: 2025-047 Finding: The Department of Social and Health Services, Home and Community Living Administration, did not have adequate internal controls over and did not comply with survey requirements for Medicaid intermediate care facilities. Program: 93.775 – State Medicaid Fraud Control...

Finding Number: 2025-047 Finding: The Department of Social and Health Services, Home and Community Living Administration, did not have adequate internal controls over and did not comply with survey requirements for Medicaid intermediate care facilities. Program: 93.775 – State Medicaid Fraud Control Units 93.777 – State Survey and Certification of Health Care Providers and Suppliers 93.778 – Grants to States for Medicaid 93.778 – COVID-19 Grants to States for Medicaid Compliance Requirement: Special Tests and Provisions – Provider Health and Safety Standards Questioned Costs: $0 Status: Corrective action in progress Corrective Action: The Department partially concurs with the finding. The Department was not able to meet the Intermediate Care Facilities for Individuals with Intellectual Disabilities (ICF-IID) survey requirements due to a backlog from prior years, not because of lack of internal controls. It was through applied internal controls that we identified concerns and were able to allocate resources to address the most serious concerns. The Department has made efforts since fiscal year 2023 to address the backlog of complaints and recertification surveys, but resources had to be prioritized to handle new complaints. There is only one team that manages surveys, complaints, and revisits for the entire state. To optimize the use of resources, the Field Manager meets with the Administrative Assistant on a quarterly basis to review the 365-day average report and determine if survey schedules need to be modified to meet federal requirements. To continue to address this audit issue, Regional Administrators have met with their ICF-IID teams to review survey scheduling for the year to ensure teams will be able to meet targeted survey completion dates and the required recertification timeframes. As of November 2025, the Department met compliance with the 15.9-month recertification survey interval measure based on the 2025 CMS State Performance Measurement Report. By August 2026, the Department expects to meet compliance with the 12.9-month statewide average. Prior Findings: The conditions noted in this finding were previously reported in findings 2024-078, 2023-078, 2020-053, 2019-061, 2018–052, 2017-042, 2016-037, 2015-045, and 2014-046. Completion Date: Estimated August 2026 Agency Contact: Richard Meyer External Compliance Audit Manager Richard.Meyer@dshs.wa.gov

View Audit 395688

Finding 1200647 (2025-046)

Material Weakness 2025

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Allowable Costs / Cost Principles HUD Housing Programs

Finding Number: 2025-046 Finding: The Department of Social and Health Services, Home and Community Living Administration, did not have adequate internal controls over and did not comply with survey requirements for Medicaid nursing homes. Program: 93.775 – State Medicaid Fraud Control Units 93.777 –...

Finding Number: 2025-046 Finding: The Department of Social and Health Services, Home and Community Living Administration, did not have adequate internal controls over and did not comply with survey requirements for Medicaid nursing homes. Program: 93.775 – State Medicaid Fraud Control Units 93.777 – State Survey and Certification of Health Care Providers and Suppliers 93.778 – Grants to States for Medicaid 93.778 – COVID-19 Grants to States for Medicaid Compliance Requirement: Special Tests and Provisions – Provider Health and Safety Standards Questioned Costs: $0 Status: Corrective action in progress Corrective Action: The Department partially concurs with the finding. The Department was not able to meet the Nursing Home survey requirements due to a backlog from prior years, not because of lack of internal controls. It was through applied internal controls that we identified concerns and were able to allocate resources to address the most serious concerns. The Department has made efforts since fiscal year 2023 to address the backlog of complaints and recertification surveys, but resources had to be prioritized to handle new complaints. There is only one team that manages surveys, complaints, and revisits for the entire state. To optimize the use of resources, the Field Manager meets with the Administrative Assistant on a quarterly basis to review the 365-day average report and determine if survey schedules need to be modified to meet federal requirements. To continue to address this audit issue, Regional Administrators have met with their Nursing Home teams to review survey scheduling for the year to ensure teams will be able to meet targeted survey completion dates and the required recertification timeframes. As of November 2025, the Department met compliance with the 15.9-month recertification survey interval measure based on the 2025 CMS State Performance Measurement Report. By August 2026, the Department expects to meet compliance with the 12.9-month statewide average. Prior Findings: The conditions noted in this finding were previously reported in findings 2024-079, 2023-079, and 2020-054. Completion Date: Estimated August 2026 Agency Contact: Richard Meyer External Audit Compliance Manager Richard.Meyer@dshs.wa.gov

View Audit 395688

Finding 1191838 (2025-001)

Material Weakness 2025

The Housing Authority of the County of Kern

CA

HUD Housing Programs Reporting

FA-2025-001 Moving to Work Demonstration Program, United States Department of Housing and Urban Development, Federal Assistance listing number #14.881. Management’s Response/Planned Corrective Action: The Authority acknowledges the finding related to untimely and incomplete Housing Quality Standards...

FA-2025-001 Moving to Work Demonstration Program, United States Department of Housing and Urban Development, Federal Assistance listing number #14.881. Management’s Response/Planned Corrective Action: The Authority acknowledges the finding related to untimely and incomplete Housing Quality Standards (HQS) inspections under the Moving to Work Demonstration Program (Assistance Listing #14.881). To correct the deficiencies noted and ensure full alignment with HUD regulatory requirements, the Authority has undertaken the following corrective actions: 1. Immediate Staffing Intervention and Backlog Elimination: To address the substantial number of past-due inspections, the Authority hired two temporary inspectors dedicated exclusively to completing all overdue HQS inspections. This focused initiative was active from June 2025 through December 2025 and successfully brought delinquent inspections current. 2. Establishment of Permanent Oversight Structure: In December 2025, the Authority hired a full-time Lead Inspector to oversee all aspects of the HQS process. This position is responsible for: o Ensuring compliance with 24 CFR §§ 982.401–982.405 o Implementing quality control measures o Monitoring inspection timeliness o Supervising inspection staff and coordinating workload assignments o Ensuring that internal policies fully align with HUD requirements, including correction of Administrative Plan Section 7A 3. Implementation of Bi-Weekly Internal Compliance Audits: To ensure ongoing adherence to HQS requirements, the Authority has instituted bi-weekly internal audits. Under this process: o A program administrator reviews a sample of completed HQS inspections o Timeliness, accuracy, documentation, and system entries are verified o Any identified deficiencies are corrected immediately and used for staff retraining 4. Ongoing Training and Compliance Reinforcement: All inspection staff have received updated training on HQS requirements, inspection timelines, documentation standards, and the Administrative Plan. Additional refresher training will be conducted at least annually or whenever regulatory guidance is updated. Anticipated Completion Date: All corrective actions described above have already been implemented or are currently in the final stages of implementation. Responsible Officials • Housing Administrator over Voucher Programs – Oversight of HQS compliance and policy revision • Lead Inspector (HQS) – Daily operational management of inspections • Assistant Executive Director – Monitoring of audit controls and QA reviews

View Audit 395651

Finding 1191808 (2025-003)

Material Weakness 2025

Capstone Community Action, Inc.

VT

Eligibility Questioned Costs Subrecipient Monitoring

Weatherization Assistance Program (ALN 81.042) Low-Income Home Energy Assistance (ALN 93.568) U.S. Department of Energy U.S. Department of Health and Human Services State of Vermont Agency of Human Services Finding 2025-003 Compliance Finding - Eligibility Views of Responsible Officials Management a...

Weatherization Assistance Program (ALN 81.042) Low-Income Home Energy Assistance (ALN 93.568) U.S. Department of Energy U.S. Department of Health and Human Services State of Vermont Agency of Human Services Finding 2025-003 Compliance Finding - Eligibility Views of Responsible Officials Management acknowledges the eligibility determination error involving a two-unit dwelling and agrees that eligibility verification procedures were not sufficiently applied in accordance with DOE requirements for multiunit properties. The Organization takes this finding seriously and is committed to strengthening controls to prevent recurrence. The Organization is actively working with the pass-through entity to resolve the questioned costs of $4,048.39 and will repay any disallowed costs as required. Corrective Action Plan 1. Multi-Unit Eligibility Control Protocol A new Multi-Unit Eligibility Determination Checklist has been implemented requiring: • Individual income verification for each unit • Calculation worksheet demonstrating compliance with: o 66% rule, OR o 50% rule (where applicable), OR o HUD categorical eligibility per WPN 22-5 • Written supervisory approval prior to job authorization No multi-unit property may proceed to audit or production until eligibility documentation is approved. 2. Pre-Service Supervisory Approval Requirement • All multi-unit eligibility determinations must be reviewed and signed by: o Will Eberle (Weatherization Director) • Documentation must be verified before work order issuance. This adds a preventive control prior to expenditure of funds. 3. Executive Oversight Review • Will Eberle (Weatherization Director) will receive a monthly eligibility compliance report. • Any exceptions will trigger immediate review. • Quarterly summary reporting will be presented to senior leadership. 4. Targeted Eligibility Training • Staff will complete focused training on: o DOE WAP multi-family eligibility requirements o Income documentation standards o HUD categorical eligibility • Training will be conducted within 45 days and annually thereafter. • Attendance logs and materials will be maintained by Scott Hall. 5. File Audit & Continuous Monitoring • Will Eberle (Weatherization Director) will conduct monthly random sampling of: o 100% of multi-unit approvals for the next 6 months o Minimum 20% thereafter • Findings will be documented and tracked. 6. Resolution of Questioned Costs • The Organization is in communication with the pass-through entity regarding the $4,048.39 in questioned costs. • Repayment will occur promptly if required. • A repayment tracking file will be maintained by finance and reviewed by Chris Locarno. Implementation Timeline Summary Action, Responsible Party, Completion Target: Multi-unit checklist implemented, Scott Hall, Completed Supervisory sign-off requirement, Scott Hall, Immediate Staff eligibility training, Scott Hall, Within 45 days Executive reporting framework, Chris Locarno Completed Monthly sampling audits, Will Eberle, Ongoig Resolution of questioned costs WX Finance / Chris Locarno, Within 90 days Statement of Commitment The Organization is committed to restoring and maintaining full compliance with all federal and state Weatherization program requirements. Leadership, including, but not limited to: Will Eberle (Weatherization Director), Scott Hall (Weatherization Associate Director), and Chris Locarno (Business Manager), has implemented structural safeguards, enhanced supervisory review, and reinforced a culture of compliance and accountability to ensure that these deficiencies do not recur. Management believes the corrective actions outlined above address both the immediate deficiencies and the underlying control weaknesses identified in the audit. Responsible Person: Will Eberle Date of Completion: April 1, 2026

View Audit 395614

Finding 1191798 (2025-001)

Material Weakness 2025

Capstone Community Action, Inc.

VT

Internal Control / Segregation of Duties Special Tests & Provisions Subrecipient Monitoring

Weatherization Assistance Program (ALN 81.042) Low-Income Home Energy Assistance (ALN 93.568) U.S. Department of Energy U.S. Department of Health and Human Services State of Vermont Agency of Human Services Finding 2025-001 Compliance Finding - Special Tests and Provisions Material Weakness in Inter...

Weatherization Assistance Program (ALN 81.042) Low-Income Home Energy Assistance (ALN 93.568) U.S. Department of Energy U.S. Department of Health and Human Services State of Vermont Agency of Human Services Finding 2025-001 Compliance Finding - Special Tests and Provisions Material Weakness in Internal Control Over Compliance Views of Responsible Officials Management acknowledges the deficiency identified in the Quality Control Inspection (QCI) process. While questioned costs were not identified, we recognize that the breakdown in controls represents a material weakness requiring immediate and sustained corrective action. Since the Office of Economic Opportunity (OEO) monitoring review, the Organization has undergone structural and cultural changes within the Weatherization Department. Leadership has taken decisive steps to reinforce compliance expectations, supervisory accountability, and documentation integrity. Corrective Action Plan 1. Immediate Structural Oversight Enhancement • Will Eberle (Weatherization Director) is designated as the primary responsible official for QCI program compliance. • Scott Hall (Weatherization Associate Director and Quality Control Lead) is responsible for direct oversight of all QCI staff and inspection standards. • Chris Locarno (Business Manager) will provide executive-level oversight and ensure crossdepartmental accountability and reporting to senior leadership and the Board. Effective immediately: • No weatherization unit may be reported or invoiced until: o QCI documentation is fully complete, o All required test results (blower door, combustion safety, final inspection) are included, o Client signature is present, o Secondary supervisory review is completed. 2. Secondary File Review Control A new Two-Tier Review Process has been implemented: Tier 1 - QCI Review (Performed by Certified BPI QCI) • Full compliance with Vermont Weatherization Program Standards • Documentation of all required final tests • Verification that QCI was not performed by supervising crew members or project participant Tier 2 - Supervisory File Review • Conducted by Scott Hall • Random sampling at minimum 25% of completed units monthly • Monthly summary report submitted to Will Eberle • Quarterly compliance summary reviewed with Chris Locarno No unit will be considered production-complete until Tier 2 review confirms documentation sufficiency. 3. Mandatory QCI Refresher Training • All QC I-certified staff will complete refresher training on: o DOE and HHS requirements o Vermont Weatherization Program Standards o Documentation standards o Independence requirements • Training will occur semi-annually at minimum. • Scott Hall will document attendance and maintain training logs. • Chris Locarno will verify annual compliance training completion as part of management review. Additionally, peer case reviews will be incorporated quarterly to reinforce quality standards. 4. Cultural and Performance Accountability • QCI compliance metrics will be incorporated into staff performance evaluations. • Repeated documentation failures will result in retraining or removal of QCI approval authority. • Monthly compliance meetings led by Scott Hall will include trend review and corrective tracking. 5. Monitoring & Reporting Timeline Action Two-tier review implemented, Will Eberle, Completed Refresher training session, Scott Hall, Within 60 Days Executive compliance review structure , Chris Locarno, Completed Quarterly internal audit sampling, Scott Hall / Will Eberle, Ongoing Responsible Person: Scott Hall Date of Completion: April 1, 2026

View Audit 395614

Finding 1191766 (2025-001)

Material Weakness 2025

Illinois Housing Development Authority

IL

Subrecipient Monitoring HUD Housing Programs § 200.303 § 200.332

The Authority agrees with the finding. The Authority will implement additional internal controls, including quality control of completed inspection, documentation, and inspection scheduling. Additionally, the Authority recognizes that the volume of required annual inspections has increased beyond ex...

The Authority agrees with the finding. The Authority will implement additional internal controls, including quality control of completed inspection, documentation, and inspection scheduling. Additionally, the Authority recognizes that the volume of required annual inspections has increased beyond existing Full Time Equivalent (FTE) capacity; therefore, an RFP for the third-party inspection vendor has been issued to supplement internal resources and support timely completion of inspections.

View Audit 395570

Finding 1191678 (2025-003)

Material Weakness 2025

M. Carter Plaza

OR

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Finding no.: 2025-003 Contact person(s) responsible: Kymberly Horner, Executive Director for PCRI and Matthew Wrigley, Accounting Financial and Audit Manager for Cascade Management Corrective action planned: The monthly deposits to the replacement reserve account have been reinstated after the lapse...

Finding no.: 2025-003 Contact person(s) responsible: Kymberly Horner, Executive Director for PCRI and Matthew Wrigley, Accounting Financial and Audit Manager for Cascade Management Corrective action planned: The monthly deposits to the replacement reserve account have been reinstated after the lapse which was due to a period of transition of management in the property management department. The funding processes have been reestablished and procedures are in place to ensure there are no unplanned lapses in funding the reserve going forward. Anticipated completion date: February 2026

View Audit 395527

Finding 1191677 (2025-002)

Material Weakness 2025

M. Carter Plaza

OR

HUD Housing Programs Special Tests & Provisions

Finding no.: 2025-002 Contact person(s) responsible: Kymberly Horner, Executive Director for PCRI and Matthew Wrigley, Accounting Financial and Audit Manager for Cascade Management Corrective action planned: The improvements in processes mentioned in the plan to address Fining no. 2025-001 will serv...

Finding no.: 2025-002 Contact person(s) responsible: Kymberly Horner, Executive Director for PCRI and Matthew Wrigley, Accounting Financial and Audit Manager for Cascade Management Corrective action planned: The improvements in processes mentioned in the plan to address Fining no. 2025-001 will serve to accelerate closing procedures and help the audit to be completed on schedule allowing for the required calculation and deposit of the residual receipt reserve funds within the required time frame. Anticipated completion date: October 2026

View Audit 395527

Finding 1191676 (2025-001)

Material Weakness 2025

M. Carter Plaza

OR

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring § 200.512

Finding no.: 2025-001 Contact person(s) responsible: Kymberly Horner, Executive Director for PCRI and Matthew Wrigley, Accounting Financial and Audit Manager for Cascade Management Corrective action planned: The closing of books and preparation for audit procedures is being addressed via improvement...

Finding no.: 2025-001 Contact person(s) responsible: Kymberly Horner, Executive Director for PCRI and Matthew Wrigley, Accounting Financial and Audit Manager for Cascade Management Corrective action planned: The closing of books and preparation for audit procedures is being addressed via improvements in internal controls related to property accounting, month and year end closing procedures which include a new property management accounting software package. It is also being addressed via the hiring of more experienced staff during fiscal year 2024-2025. The organization anticipates that these improvements will allow for the audit to be completed within the required timeframe in the upcoming cycle. Anticipated completion date: October 2026

View Audit 395527

Finding 1191656 (2025-003)

Material Weakness 2025

Isd 115 Cass Lake-Bena

MN

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Contact Person – Sue Chase, Superintendent Corrective Action Plan – The District should implement policies and procedures to ensure only allowable activities/costs are being charged against grants. Completion Date – March 31, 2026

View Audit 395508

Finding 1191623 (2025-009)

Material Weakness 2025

Albuquerque Housing Authority

NM

HUD Housing Programs Internal Control / Segregation of Duties

Management accepts the guidance of the auditors to have an additional quality control step. Development of this is in process. This ongoing monitoring of program compliance is important to the PHA and staff will be trained.

View Audit 395483

Finding 1191621 (2025-007)

Material Weakness 2025

Albuquerque Housing Authority

NM

HUD Housing Programs

While there were errors with missing documents, it should be noted that there were no rent calculation errors which could potentially lead to loss of funds. AHA will implement the recommendations for training. AHA is currently working on revising the quality control (QC) form with updated informatio...

While there were errors with missing documents, it should be noted that there were no rent calculation errors which could potentially lead to loss of funds. AHA will implement the recommendations for training. AHA is currently working on revising the quality control (QC) form with updated information as well as a place for names and completion dates. AHA will be sending all new employees to Rent Calculation class as well as sending all staff that worked on the files to 50058 update class. AHA Public Housing completed an AMP change to begin FY 2026. In that change we shifted properties to different offices and different Property staff.

View Audit 395483

Finding 1191568 (2025-006)

Material Weakness 2025

PROJECT WORTHMORE

CO

Internal Control / Segregation of Duties Questioned Costs HUD Housing Programs § 200.303

Management will implement a formal review and approval process for Federal reporting to ensure compliance with 2 CFR 200.303. • Review Process: Establish standardized procedures for preparation, review, and submission of Federal reports. • Roles and Responsibilities: Assign responsibility for prepar...

Management will implement a formal review and approval process for Federal reporting to ensure compliance with 2 CFR 200.303. • Review Process: Establish standardized procedures for preparation, review, and submission of Federal reports. • Roles and Responsibilities: Assign responsibility for preparation and independent review of reports. • Documented Approval: Require documented evidence of review and approval. • Supporting Documentation: Ensure all reported amounts are supported by underlying records and reconciliations. • Training: Prior to next Federal Grant requiring a single audit, provide training on Federal reporting requirements and internal control expectations.

View Audit 395436

Finding 1191504 (2025-001)

Material Weakness 2025

Housing Authority of the City of Annapolis

MD

HUD Housing Programs Special Tests & Provisions Eligibility

Corrective Action Plan: The Authority acknowledges the finding. Corrective actions to address the deficiencies are underway and include: Updating internal policies and procedures related to Housing Choice Voucher (HCV) program compliance, including tenant eligibility, income verification, rent reaso...

Corrective Action Plan: The Authority acknowledges the finding. Corrective actions to address the deficiencies are underway and include: Updating internal policies and procedures related to Housing Choice Voucher (HCV) program compliance, including tenant eligibility, income verification, rent reasonableness, utility allowance calculations, and documentation requirements; Providing targeted staff training on HUD HCV program requirements, including proper file documentation, income calculation, and timely completion of annual and interim recertifications; Implementing a mandatory file checklist to ensure all required documentation is obtained, reviewed, and verified prior to finalizing tenant certifications and rent determinations; Establishing a formal quality control process in which supervisory staff perform periodic file reviews to ensure compliance with HUD requirements and internal policies; Conducting a comprehensive review and cleanup of all HCV tenant files to identify and correct missing or incomplete documentation, including income verification, inspections, and rent calculations; Maintaining an audit trail of all verification documentation to ensure proper retention and support for tenant eligibility and rent determinations; Implementing tracking tools and system reports to monitor recertification due dates, inspection schedules, and file completion status to ensure timely compliance; Continuing engagement with third-party service provider, Quadel, to assist with tenant file documentation compliance, backlog recertifications, and rent calculation accuracy; Hiring and/or assigning additional staff, including HCV program leadership and specialists, to strengthen oversight, ensure timely processing of recertifications, and maintain compliance with HUD requirements.

View Audit 395422

Finding 1191481 (2025-003)

Material Weakness 2025

Housing Authority of the City of Westwego, Louisiana

LA

Reporting Questioned Costs HUD Housing Programs § 200.303 § 200.516

FINDING 2025 003 — MATERIAL WEAKNESS (INTERNAL CONTROL OVER COMPLIANCE) — GRANT ACCOUNTING AND CLOSE PROCESS AFFECTING MAJOR FEDERAL PROGRAMS — (PROGRAMS: ALN 14.872 AND ALN 97.036) Cross reference: This finding is directly related to Financial Statement Finding 2025 001. Contact Person: Cantrese Wi...

FINDING 2025 003 — MATERIAL WEAKNESS (INTERNAL CONTROL OVER COMPLIANCE) — GRANT ACCOUNTING AND CLOSE PROCESS AFFECTING MAJOR FEDERAL PROGRAMS — (PROGRAMS: ALN 14.872 AND ALN 97.036) Cross reference: This finding is directly related to Financial Statement Finding 2025 001. Contact Person: Cantrese Wilson Jones, Executive Director Corrective Action Planned: Corrective actions for this compliance finding will be addressed through the same improvements outlined in Finding 2025 001, including: 1. Adoption of a documented monthly and year end closing calendar. 2. Timely reconciliation of all grant related accounts. 3. Enhanced supervisory review and documentation of compliance related reporting, including SEFA preparation. 4. Strengthening internal controls to ensure grant activity is recorded in the proper period. Anticipated Completion Date: June 30, 2026 Management Response: Management concurs with the finding and will implement the corrective measures beginning FY 2026.

View Audit 395397

Finding 1191228 (2025-001)

Material Weakness 2025

Brownsville Housing Authority

TN

HUD Housing Programs Special Tests & Provisions

Auditors’ Recommendation: The Authority should perform housing quality control re-inspections according to HUD guidelines. Grantee Response: We will comply with the auditors’ recommendation. Anticipated Completion Date: June 30, 2026 Views of responsible officials and planned corrective actions: We ...

Auditors’ Recommendation: The Authority should perform housing quality control re-inspections according to HUD guidelines. Grantee Response: We will comply with the auditors’ recommendation. Anticipated Completion Date: June 30, 2026 Views of responsible officials and planned corrective actions: We will comply with the auditors’ recommendations.

View Audit 395383

Finding 1191221 (2025-001)

Material Weakness 2025

Housing Authority of Gilmer

TX

HUD Housing Programs Questioned Costs Allowable Costs / Cost Principles

Corrective Action Plan - Public and Indian Housing - interfund receivable balance. Contact person: Alana Burnet, Executive Director, Housing Authority of Gilmer, 104 Circle Drive, Gilmer, TX 75644-0397, telephone number (903) 843-3141. Correction action planned: The PHA will have its Section 8 new c...

Corrective Action Plan - Public and Indian Housing - interfund receivable balance. Contact person: Alana Burnet, Executive Director, Housing Authority of Gilmer, 104 Circle Drive, Gilmer, TX 75644-0397, telephone number (903) 843-3141. Correction action planned: The PHA will have its Section 8 new construction program reimburse the Public and Indian Housing Program for the interfund balance and make sure any interfund activity is reimbursed on a monthly basis. Anticipated completion date: Immediately.

View Audit 395356

Finding 1191133 (2025-002)

Material Weakness 2025

The Housing Authority of the City of Hot Springs

AR

HUD Housing Programs Special Tests & Provisions

Auditor’s Recommendation: The Authority should perform a random inspection of 20% of the units in each building as per the housing payments contracts and ensure documentation of a “passed” housing quality inspection is maintained. A thorough review of tenant files should be performed for the purpose...

Auditor’s Recommendation: The Authority should perform a random inspection of 20% of the units in each building as per the housing payments contracts and ensure documentation of a “passed” housing quality inspection is maintained. A thorough review of tenant files should be performed for the purpose of eliminating the deficiencies. Grantee Response: HQS inspections were performed upon move-in of a new tenant. We will continue the move-in inspections and perform the required random sample of inspections for 20% of the units under contract in each building. Anticipated Completion Date: June 30, 2026

View Audit 395312

Finding 1191132 (2025-001)

Material Weakness 2025

The Housing Authority of the City of Hot Springs

AR

HUD Housing Programs

Auditor’s Recommendation: This is a repeat finding. A thorough review of tenant files should be performed for the purpose of eliminating the deficiencies. Grantee Response: We will comply with the auditor’s recommendation. Anticipated Completion Date: June 30, 2025

View Audit 395312

Finding 1191103 (2025-016)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Eligibility Questioned Costs Special Tests & Provisions

Recommendation: The Department of Social Services should provide the necessary resources and institute procedures to ensure that it uses all information from eligibility, income, and death matches to ensure that it correctly issues benefits to or on behalf of eligible clients. DSS should return fede...

Recommendation: The Department of Social Services should provide the necessary resources and institute procedures to ensure that it uses all information from eligibility, income, and death matches to ensure that it correctly issues benefits to or on behalf of eligible clients. DSS should return federal reimbursements for unallowable expenditures claimed under Medicaid and SNAP. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this finding. DSS staff is in the development phase of implementing new automated procedures to ensure timely and accurate action is taken to discontinue benefits of deceased clients when date of death information is received and matched to the Connecticut Department of Public Health’s State Vital Records Office. Action has been taken to correct the errors cited, including discontinuing the benefits of the individuals that were verified as deceased, and recouping the overpayments as appropriate. Anticipated Completion Date: December 31, 2026 Department of Social Services Contact Person: Dan Giacomi, Program Division Director (860) 424-5080

View Audit 395257

Finding 1191093 (2025-728)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

HUD Housing Programs § 200.303

Recommendation: The Department of Housing should strengthen internal controls to ensure that it properly calculates and supports Section 8 Housing Choice Vouchers and Mainstream Vouchers housing assistance and utility benefit payments. Corrective Action Plan as Reported by the Department of Housing:...

Recommendation: The Department of Housing should strengthen internal controls to ensure that it properly calculates and supports Section 8 Housing Choice Vouchers and Mainstream Vouchers housing assistance and utility benefit payments. Corrective Action Plan as Reported by the Department of Housing: We agree with the finding. DOH did contract with a third-party entity to provide these services; however, DOH retains overall responsibility for the program. Recently, DOH established a Section 8 division within DOH to provide more oversight over the program and contactor. We are working closely with the contractor to strengthen their internal control, develop policies and procedures. DOH will continue collaborating with the contractor to enhance system controls and minimize the risk of future issues. All identified errors in this finding have been corrected including the questionable cost. DOH remains committed to continuous improvement and effective oversight of the program and contractor. Anticipated Completion Date: April 30, 2026 Department of Housing Contact Person: Melvin Castillo, Asst. Chief Fiscal Admin. Services Natasha Khemraj, Accounting Program Manager (860) 899-6585

View Audit 395257

Finding 1191092 (2025-726)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

HUD Housing Programs § 200.303

Recommendation: The Department of Housing should properly monitor its contractor to ensure that it only awards benefits to eligible recipients. Corrective Action Plan as Reported by the Department of Housing: We agree with the finding. DOH did contract with a third-party entity to provide these serv...

Recommendation: The Department of Housing should properly monitor its contractor to ensure that it only awards benefits to eligible recipients. Corrective Action Plan as Reported by the Department of Housing: We agree with the finding. DOH did contract with a third-party entity to provide these services. The contractor has been experiencing technical difficulties accessing the HUD system. We are aware of this current situation, and we are working with HUD to resolve this issue as soon as possible. Anticipated Completion Date: Ongoing Department of Housing Contact Person: Melvin Castillo, Asst. Chief Fiscal Admin. Services Natasha Khemraj, Accounting Program Manager (860) 899-6585

View Audit 395257

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