Corrective Action Plans

Finding 539531 (2024-003)

Material Weakness 2024

Community Care

ME

HUD Housing Programs

Corrective Action Plan for Finding 2024-003 Community Care agrees with this finding. The homeless youth service sector of our organization has significant report requirements that could not be supported by existing resources. A recent effort to improve report timing was to hire an administrative...

Corrective Action Plan for Finding 2024-003 Community Care agrees with this finding. The homeless youth service sector of our organization has significant report requirements that could not be supported by existing resources. A recent effort to improve report timing was to hire an administrative person to specifically focus on these reports. This individual began employment in February 2025. The primary purpose of this position will be to organize data and complete reports on schedule. Responsible Official: David McCluskey, Executive Director Date of Corrective Action: New employee hired in February 2025

View Audit 350061

Finding 539483 (2024-002)

Material Weakness 2024

Athens Housing Authority

GA

HUD Housing Programs Eligibility Material Weakness

Finding 2024-002 – Low Income Public Housing Tenant Files – Eligibility – Noncompliance & Material Weakness – Public and Indian Housing – ALN #14.850 Corrective Action Plan: The Housing Authority has contracted with US Inspections to continue pre-inspecting units in preparation for NSPIRE inspecti...

Finding 2024-002 – Low Income Public Housing Tenant Files – Eligibility – Noncompliance & Material Weakness – Public and Indian Housing – ALN #14.850 Corrective Action Plan: The Housing Authority has contracted with US Inspections to continue pre-inspecting units in preparation for NSPIRE inspections. Additionally, staff is coordinating Income Calculation training with Zeffert University. Lastly, the Housing Authority has implemented a 100% file compliance review, which took effect on January 1, 2025. Person Responsible: Tammy Bradshaw, Admissions & Compliance Manager Anticipated Completion Date: June 2025

View Audit 350010

Finding 539482 (2024-001)

Material Weakness 2024

Athens Housing Authority

GA

HUD Housing Programs Internal Control / Segregation of Duties Allowable Costs / Cost Principles

Finding 2024-001 – Accounting Controls – Internal Controls over Financial Statement Preparation ALN 14.850 – Noncompliance and Material Weakness Corrective Action Plan: The Housing Authority is working with new personnel to ensure processes are documented and proper training is taking place. The...

Finding 2024-001 – Accounting Controls – Internal Controls over Financial Statement Preparation ALN 14.850 – Noncompliance and Material Weakness Corrective Action Plan: The Housing Authority is working with new personnel to ensure processes are documented and proper training is taking place. The Housing Authority has contracted with BDO to assist with year-end processes and training. Person Responsible: Sheila Crisp, Executive Director Anticipated Completion Date: June 2025

View Audit 350010

Finding 539416 (2024-001)

None 2024

Florida Christian Manor, Inc. (sundale Manor)

AL

HUD Housing Programs

Management agrees with the finding. The excess funds were accrued to offset future Section 8 HAP requests.

View Audit 349969

Finding 539409 (2024-004)

Significant Deficiency 2024

Prince William County

VA

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties § 200.303

Finding 2024‐004: Significant Deficiency and Non‐Material Noncompliance – Housing Voucher Cluster REAC Report Name of Contact Person: Joan Duckett, Director of Housing & Community Development Corrective Action: The Office of Housing and Community Development (OHCD) has taken corrective measures to e...

Finding 2024‐004: Significant Deficiency and Non‐Material Noncompliance – Housing Voucher Cluster REAC Report Name of Contact Person: Joan Duckett, Director of Housing & Community Development Corrective Action: The Office of Housing and Community Development (OHCD) has taken corrective measures to ensure that the REAC reports are supported with accurate data and submitted in a timely manner. There are monthly reconciliation procedures in place which include management oversight and review of all reports. OHCD has and will continue to enter into a contractual agreement with a knowledgeable and reputable accounting firm that the County is under contract for services applicable to the need. REAC reports will be extensively reviewed by management prior to submission to HUD. Proposed Completion Date: Immediately

View Audit 349955

Finding 539408 (2024-003)

Significant Deficiency 2024

Prince William County

VA

HUD Housing Programs Significant Deficiency

Finding 2024‐003: Significant Deficiency and Non‐Material Noncompliance – Housing Voucher Cluster Special Test 8 – Bank Accounts Name of Contact Person: Joan Duckett, Director of Housing & Community Development Corrective Action: The Office of Housing and Community Development began working with the...

Finding 2024‐003: Significant Deficiency and Non‐Material Noncompliance – Housing Voucher Cluster Special Test 8 – Bank Accounts Name of Contact Person: Joan Duckett, Director of Housing & Community Development Corrective Action: The Office of Housing and Community Development began working with the County’s Finance Department and the current Banking Financial Institution (Wells Fargo) and opened two separate accounts, one for the Housing Choice Voucher (HCV) program and one for the FSS Escrow Accounts in April 2024. The task included revised mapping of deposits and expenditures, including the establishment of related workflows within the County’s financial management system and therefore these changes were adequately tested. The migration to the two new bank accounts went live on July 1, 2024, and per HUD regulations a General Depository Agreement (HUD‐51999 GDA) was entered. Proposed Completion Date: Immediately

View Audit 349955

Finding 539225 (2024-901)

Significant Deficiency 2024

State of Wisconsin

WI

Allowable Costs / Cost Principles Eligibility HUD Housing Programs § 200.303

Planned Corrective Action: The Office of the Commissioner of Insurance accepts the Legislative Audit Bureau’s recommendation to ensure claims meet eligibility requirements and include appropriate documentation. The following corrective actions are planned: • A spreadsheet is used to collect claims s...

Planned Corrective Action: The Office of the Commissioner of Insurance accepts the Legislative Audit Bureau’s recommendation to ensure claims meet eligibility requirements and include appropriate documentation. The following corrective actions are planned: • A spreadsheet is used to collect claims service and payment dates. A formula will be applied to either restrict or flag dates outside the allowable period. • Insurance carriers will be notified of the formula change and reminded to only include claims that were paid within the allowable period. Anticipated Completion Date: The PY 2025 spreadsheet will be updated by February 2025 and insurance carriers notified when provided the updated spreadsheet for PY 2025 reporting. Reporting for 1st quarter 2025 is due in May 2025. Person responsible for corrective action: Rebecca Easland, Deputy Commissioner of Insurance Rebecca.easland@wisconsin

View Audit 349896

Finding 539136 (2024-001)

Significant Deficiency 2024

Wyoming Energy Authority

WY

Internal Control / Segregation of Duties HUD Housing Programs Reporting

2024-001: Segregation of Duties (Significant Deficiency) Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding. The Authority will implement controls when feasible. In addition, the Executive Director and the Board of Directors will continue to review ...

2024-001: Segregation of Duties (Significant Deficiency) Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding. The Authority will implement controls when feasible. In addition, the Executive Director and the Board of Directors will continue to review the Accounting Manager’s monthly financials and back up documentation. In addition, the Board treasurer reviews bank statements and bank reconciliations monthly. The Authority has also hired an external accounting firm to assist in the review process. Completion Date - December 2024 Contact Person - Jami Blosmo, Accounting Manager

View Audit 349825

Finding 539082 (2024-001)

Significant Deficiency 2024

City of Glendale, Arizona

AZ

Procurement, Suspension & Debarment Allowable Costs / Cost Principles HUD Housing Programs

COVID-19 Coronavirus State and Local Fiscal Recovery Fund– Assistance Listing No. 21.027 Recommendation: The City should enhance or modify its internal controls over suspension and debarment, as necessary, to ensure compliance with suspension and debarment provisions. Explanation of disagreement wi...

COVID-19 Coronavirus State and Local Fiscal Recovery Fund– Assistance Listing No. 21.027 Recommendation: The City should enhance or modify its internal controls over suspension and debarment, as necessary, to ensure compliance with suspension and debarment provisions. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We provided training to procurement staff about the suspension and debarment requirements of 2 CFR 200.214. Further, we expanded language in the City’s formal soliciation template regarding suspension and debarment and added a specifc step on our solitication timeline checklist to perform SAM checks. Name(s) of the contact person(s) responsible for corrective action Levi Gibson, Budget and Finance Director Planned completion date for corrective action plan: December 2024

View Audit 349783

Finding 539067 (2024-009)

Significant Deficiency 2024

City of Boston

MA

Procurement, Suspension & Debarment Student Financial Aid Allowable Costs / Cost Principles § 200.303 § 200.64 § 200.67

Boston Public Schools has revised its’ eligibility record keeping process to ensure that records are accurate and complete. This adjustment to record keeping practice has been instituted beginning with the FY25 grant application cycle. Anticipated Completion Date: June 30, 2025 Responsible Contact...

Boston Public Schools has revised its’ eligibility record keeping process to ensure that records are accurate and complete. This adjustment to record keeping practice has been instituted beginning with the FY25 grant application cycle. Anticipated Completion Date: June 30, 2025 Responsible Contact Person: Colin Musto, Assistant City Auditor, Grants Monitoring Unit colin.musto@boston.gov

View Audit 349776

Finding 539065 (2024-007)

Significant Deficiency 2024

City of Boston

MA

Matching / Level of Effort / Earmarking HUD Housing Programs Reporting § 200.303

Boston Public Schools has updated training for school leaders to review school leader certification of withdrawals. Anticipated Completion Date: June 30, 2025 Responsible Contact Person: Colin Musto, Assistant City Auditor, Grants Monitoring Unit colin.musto@boston.gov

View Audit 349776

Finding 539046 (2024-001)

None 2024

Chc Highview, LLC D/b/a Winfield Townhomes Hud Proj #092-35746

MN

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

Auditee's Response to Finding: Management concurs with the finding. Recommendations: Management should implement internal controls over restricted cash that are sufficient to ensure deposits for replacement reserve are deposited in the appropriate amount. Management Comments: Management concurs with...

Auditee's Response to Finding: Management concurs with the finding. Recommendations: Management should implement internal controls over restricted cash that are sufficient to ensure deposits for replacement reserve are deposited in the appropriate amount. Management Comments: Management concurs with the finding and the recommendation. Completion Date: In progress

View Audit 349751 Questioned Costs: $1

Finding 538859 (2024-003)

Significant Deficiency 2024

Traverse City Housing Commission

MI

HUD Housing Programs

Corrective Action Planned: The Authority will obtain depository agreements with their banks.

View Audit 349610

Finding 538846 (2024-003)

Significant Deficiency 2024

County of Loudoun, Virginia

VA

HUD Housing Programs Internal Control / Segregation of Duties Eligibility § 200.303

Finding: 2024-003: Significant Deficiency in Internal Control Over Compliance and Non- Material Noncompliance Responsible Person: Brian Reagan, Assistant Director, Department of Housing and Community Development Estimated Completion: April 30, 2025 Corrected Action: 1. The County will develop a solu...

Finding: 2024-003: Significant Deficiency in Internal Control Over Compliance and Non- Material Noncompliance Responsible Person: Brian Reagan, Assistant Director, Department of Housing and Community Development Estimated Completion: April 30, 2025 Corrected Action: 1. The County will develop a solution with the software company that supports the Department of Housing and Community Development’s (DHCD) current client management to provide standardized reports that can be used by managers to monitor properties that have upcoming inspection due dates. The County will address current limitations within the software that does not allow for a fully automated workflow, which then necessitates a highly manual process and more likelihood of human error. 2. Staff will continue to utilize the monthly Section Eight Management Assessment Program (SEMAP) Indicators Report in HUD’s Public and Indian Housing Information Center (PIC) database and provide that information to the inspectors monthly so that all inspections will be planned in advance of the due date. 3. The HCV Program is currently in the process of transitioning the client management software to a new software provider and staff is diligently working to ensure that notifications and reports are available for the tracking of initial, biennial, and special inspection due dates. 4. DHCD currently employs only one full-time Inspector to conduct all initial, biennial, and special inspections for the HCV Program. The number of initial inspections increased by 180% during 2023 and 2024. As part of the Fiscal Year 2026 budget process, DHCD requested an additional full-time Inspector position that will conduct HCV inspections as well as inspections for other DHCD programs, which will further ensure that all inspections are completed in a timely manner and subject to quality control, especially during periods of program growth. 5. Additionally, the Inspector and HCV Program Manager will attend Inspection training, to enhance their knowledge of inspection requirements and compliance.

View Audit 349563

Finding 538749 (2024-005)

Significant Deficiency 2024

Housing Authority of the City of Martinsburg

WV

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Finding 2024-005 – Special Tests and Provisions – Public Housing Waiting List ALN 14.850 – Noncompliance & Significant Deficiency Recommendation: We recommend that the PHA review its policies and procedures surrounding the selections of applicants to ensure compliance with federal, state and loca...

Finding 2024-005 – Special Tests and Provisions – Public Housing Waiting List ALN 14.850 – Noncompliance & Significant Deficiency Recommendation: We recommend that the PHA review its policies and procedures surrounding the selections of applicants to ensure compliance with federal, state and local regulations. The PHA should then develop a documentation system that ensures a clear trail can be provided on the movement of applicants while on the waiting list. Finally, they should ensure that documentation is available for review when requested. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will review our policies and procedures over waitlist management and updated as necessary. We will work with our software provided to obtain the current listing and best practices for maintaining data in the system. Finally, we will conduct an outreach to all applicants on the current list to obtain updated applications and determine eligibility status. Name(s) of the contact person(s) responsible for corrective action: Navonya Kolani, Executive Director Planned completion date for corrective action plan: September 30, 2025.

View Audit 349460

Finding 538748 (2024-004)

Significant Deficiency 2024

Housing Authority of the City of Martinsburg

WV

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Finding 2024-004 – Special Tests and Provisions – Public Housing Inspections ALN 14.850 – Noncompliance & Significant Deficiency Recommendation: We recommend that the PHA schedule annual inspections to occur in conjunction with the annual recertifications. Alternatively, the PHA could schedule al...

Finding 2024-004 – Special Tests and Provisions – Public Housing Inspections ALN 14.850 – Noncompliance & Significant Deficiency Recommendation: We recommend that the PHA schedule annual inspections to occur in conjunction with the annual recertifications. Alternatively, the PHA could schedule all annual inspections to occur at one time. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will conduct a review of our existing inspection procedures and update the timing of inspections to align with the annual recertification dates. Name(s) of the contact person(s) responsible for corrective action: Navonya Kolani, Executive Director Planned completion date for corrective action plan: September 30, 2025.

View Audit 349460

Finding 538747 (2024-003)

Significant Deficiency 2024

Housing Authority of the City of Martinsburg

WV

HUD Housing Programs Reporting Significant Deficiency

Finding 2024-003 – Special Tests and Provisions – SEMAP reporting ALN 14.871 – Noncompliance & Significant Deficiency Recommendation: We recommend that the PHA personnel obtain the appropriate training for SEMAP documentation and certification and appropriately document the SEMAP reports in futur...

Finding 2024-003 – Special Tests and Provisions – SEMAP reporting ALN 14.871 – Noncompliance & Significant Deficiency Recommendation: We recommend that the PHA personnel obtain the appropriate training for SEMAP documentation and certification and appropriately document the SEMAP reports in future years. We also recommend that the PHA utilize the existing computer system to adequately document SEMAP on a regular basis. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will conduct regular training sessions for staff involved in SEMAP submission process to reinforce proper procedures and documentation management. Name(s) of the contact person(s) responsible for corrective action: Navonya Kolani, Executive Director Planned completion date for corrective action plan: September 30, 2025.

View Audit 349460

Finding 538744 (2024-001)

Material Weakness 2024

Housing Authority of the City of Martinsburg

WV

Cash Management HUD Housing Programs

Finding 2024-001 – Capital Fund Program Accounting– Cash Management & Program Compliance ALN 14.872 – Grant years 2018, 2019, 2021, 2022 – Noncompliance & Material Weakness Recommendation: We recommend that the PHA establish an appropriate cash management procedure that facilitates timely requests ...

Finding 2024-001 – Capital Fund Program Accounting– Cash Management & Program Compliance ALN 14.872 – Grant years 2018, 2019, 2021, 2022 – Noncompliance & Material Weakness Recommendation: We recommend that the PHA establish an appropriate cash management procedure that facilitates timely requests and reimbursements of grant costs as incurred. We also recommend that the applicable PHA staff undergo Capital Fund training to ensure grant requirements are met prior to their deadlines. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will conduct a comprehensive review of existing cash management policies and procedures and update policies to align with current best practices and regulatory requirements for the Capital Fund Program. We will ensure that all staff members are informed of the updated policies and receive appropriate training. Name(s) of the contact person(s) responsible for corrective action: Navonya Kolani, Executive Director Planned completion date for corrective action plan: September 30, 2025.

View Audit 349460

Finding 538674 (2024-004)

Material Weakness 2024

City of Baldwin Park

CA

Subrecipient Monitoring Eligibility HUD Housing Programs

2024-004 - Special Tests – Internal Control and Compliance over Housing Quality Standards Inspections (Material Weakness) Condition: During the Fail Inspection Testing, we found five (5) instances out of nine (9) in which the City did not conduct the Housing Quality Standards (HQS) failed inspecti...

2024-004 - Special Tests – Internal Control and Compliance over Housing Quality Standards Inspections (Material Weakness) Condition: During the Fail Inspection Testing, we found five (5) instances out of nine (9) in which the City did not conduct the Housing Quality Standards (HQS) failed inspection follow-up in a timely manner. Specifically: • For two (2) samples, the reinspection was not performed within 30 days of the failed inspection, and the deficiencies were not confirmed to be resolved within the required timeframe. • For one (1) sample, the inspection checklist indicated a failed inspection, while the inspector erroneously documented and processed it as a passed inspection, meaning o reinspection was performed. • For one (1) sample, the reinspection was not performed, and no documentation was found to verify the follow-up inspection. We also noted one (1) additional instance out of forty (40) samples from Eligibility Cross Testing where the failed inspection did not have any record of a follow-up reinspection. Management concurs. Corrective Actions: Staff will continue to utilize consulting services to complete the necessary HQS inspections during the staff turnover. The City will also strengthen the internal controls for inspections to complete them timely and within compliance. Name of Responsible Person: Ron Garcia, Director of Community Development Ryan Mulligan, Housing Manager

View Audit 349408

Finding 538668 (2024-007)

Significant Deficiency 2024

Municipality of Toa Alta

PR

HUD Housing Programs Significant Deficiency Special Tests & Provisions

MUNICIPALITY OF TOA ALTA CORRECTIVE ACTION PLAN SINGLE AUDIT REQUIREMENTS AS OF JUNE 30, 2024 FINDING 2024-007: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SECTION 8 HOUSING CHOICE VOUCHERS (ALN 14.871) PASS-THROUGH P.R. DEPARTMENT OF HOUSING SPECIAL TESTS AND PROVISIONS (N) SIGNIFICANT DEFICIE...

MUNICIPALITY OF TOA ALTA CORRECTIVE ACTION PLAN SINGLE AUDIT REQUIREMENTS AS OF JUNE 30, 2024 FINDING 2024-007: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SECTION 8 HOUSING CHOICE VOUCHERS (ALN 14.871) PASS-THROUGH P.R. DEPARTMENT OF HOUSING SPECIAL TESTS AND PROVISIONS (N) SIGNIFICANT DEFICIENCY AND NONCOMPLIANCE Corrective Action As a corrective action for the noncompliance with the requirement of the Quality Control Reinspections during fiscal year 2023-2024, I have been performing the corresponding re-inspections since July 2024, when I started in the position of Director of the Federal Programs Department. Statement of Concurrence and Responsible Persons We concur with the auditors' finding. Miguel Fonseca Fonseca Federal Programs Director Implementation Date Fiscal year 2024-2025

View Audit 349402

Finding 538535 (2024-070)

Significant Deficiency 2024

State of Maine

ME

Allowable Costs / Cost Principles Internal Control / Segregation of Duties HUD Housing Programs § 200.303

Department: Health and Human Services Title: Internal control over Medicaid drug rebates needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: PRIMS (Pharmacy Rebate Information Management System), provided to the State of ...

Department: Health and Human Services Title: Internal control over Medicaid drug rebates needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: PRIMS (Pharmacy Rebate Information Management System), provided to the State of Maine by a third-party vendor, is a proven system in production in many locations and PRIMS has passed a wide variety of Federal and State audits. The drug rebate program is complex and there are numerous steps in the process which have already been demonstrated and/or provided to the Office of State Auditor. The controls described to the State Auditor previously (Pre-invoicing controls, pharmacy claims controls and medical claims controls) address all three of the Auditors’ Recommendations. Completion Date: N/A Agency Contact: Michelle Probert, Director, Office of MaineCare Services, DHHS, 207-287-2093

View Audit 349360

Finding 538264 (2024-004)

None 2024

The Housing Authority of Lafourche Parish

LA

HUD Housing Programs Material Weakness Reporting

Federal Reporting Deadline Not Met/ Unaudited Financial Data Schedule Not Submitted Timely Public Housing Program – Assistance Listing No. 14.850a, Section 8 Housing Choice Voucher Program – Assistance Listing No. 14.871, Capital Fund Program – Assistance Listing No. 14.872, Disaster Grants – Publi...

Federal Reporting Deadline Not Met/ Unaudited Financial Data Schedule Not Submitted Timely Public Housing Program – Assistance Listing No. 14.850a, Section 8 Housing Choice Voucher Program – Assistance Listing No. 14.871, Capital Fund Program – Assistance Listing No. 14.872, Disaster Grants – Public Assistance (Presidentially Declared) – Assistance Listing No. 97.036; Grant period – Fiscal Year Ended September 30, 2024 Corrective Action The Authority will complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Erial Branch, Executive Director, has assumed the responsibility of assuring completion and submission of the Authority’s Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end, and expects this instance of noncompliance to be resolved by November 30, 2025.

View Audit 349247

Finding 538262 (2024-002)

None 2024

The Housing Authority of Lafourche Parish

LA

Procurement, Suspension & Debarment HUD Housing Programs

Non-compliance with Internal Procurement Policy Capital Fund Program – Assistance Listing No. 14.872; Grant Period - Fiscal Year-Ended September 30, 2024 Corrective Action The Authority will attain certification against suspension and debarment or search the EPLS for prospective contractors prior...

Non-compliance with Internal Procurement Policy Capital Fund Program – Assistance Listing No. 14.872; Grant Period - Fiscal Year-Ended September 30, 2024 Corrective Action The Authority will attain certification against suspension and debarment or search the EPLS for prospective contractors prior to awarding contracts. The Authority’s Executive Director, Erial Branch, has assumed the responsibility of executing this corrective action as of April 30, 2025.

View Audit 349247

Finding 538199 (2024-006)

Significant Deficiency 2024

Virginia Housing Development Authority

VA

HUD Housing Programs Reporting Significant Deficiency

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – HAP Register and PIC Submissions Recommendation: We recommend that the Authority review its internal controls over the HAP process to ensure the correct amounts are paid each month. We recommend that the Authority review its pr...

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – HAP Register and PIC Submissions Recommendation: We recommend that the Authority review its internal controls over the HAP process to ensure the correct amounts are paid each month. We recommend that the Authority review its process for uploading data to PIC to ensure each recertification gets submitted. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Virginia Housing is committed to ensuring accurate and timely data submission to HUD’s Public and Indian Housing Information Center (PIC) system. Virginia Housing acknowledges that staffing challenges, at Virginia Housing and HUD Field Offices, including the turnover of key personnel, contributed to gaps in the PIC data submission process. To address this issue, Virginia Housing has hired new systems staff to restore capacity and strengthen internal controls over data management. The new staff will focus on improving data management procedures, enhancing system oversight, and ensuring timely submission of all required recertifications. Of the files not located in PIC, six (6) have since been submitted in PIC as of March 11, 2025. Virginia Housing will continue to work toward a resolution for the seventh file. Additionally, Virginia Housing will implement quality control measures to verify that all recertifications are properly uploaded to PIC. This will include the development of clear protocols for tracking submission status, conducting regular audits of uploaded data, and ensuring staff are trained on updated procedures. Name(s) of the contact person(s) responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives Planned completion date for corrective action plan: September 30, 2025

View Audit 349205

Finding 538196 (2024-005)

Significant Deficiency 2024

Virginia Housing Development Authority

VA

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – Waiting List Recommendation: We recommend that the Authority review its internal controls over the waiting list process to ensure all documentation is maintained at the time each applicant is selected from the waiting list. Ex...

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – Waiting List Recommendation: We recommend that the Authority review its internal controls over the waiting list process to ensure all documentation is maintained at the time each applicant is selected from the waiting list. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Virginia Housing is committed to strengthening its internal controls over the waiting list process to ensure all required documentation is properly maintained at the time each applicant is selected. To address this concern, Virginia Housing has been conducting a comprehensive review of its current procedures to identify gaps and implement improvements that align with HUD requirements. As part of this effort, Virginia Housing is actively developing standardized documents and processes for all LHAs to promote consistency and enhance compliance. This initiative includes the creation of detailed job aids and reference materials such as quick reference guides and flowcharts. These resources are designed to improve staff understanding of proper waiting list procedures, reinforce documentation requirements, and reduce errors. Name(s) of the contact person(s) responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives Planned completion date for corrective action plan: December 31, 2025

View Audit 349205

Corrective Action Plans

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