Corrective Action Plans

Finding 1201234 (2025-007)

Material Weakness 2025

City of Boston

MA

Student Support and Academic Enrichment – Assistance Listing No. 84.424 Recommendation: We recommend Boston Public Schools review and enhance internal controls and procedures to ensure that they retain copies of correspondence with private schools to ensure completeness and accuracy of the calculati...

Student Support and Academic Enrichment – Assistance Listing No. 84.424 Recommendation: We recommend Boston Public Schools review and enhance internal controls and procedures to ensure that they retain copies of correspondence with private schools to ensure completeness and accuracy of the calculation. Action taken in response to finding: In August 2025, Boston Public Schools developed and implemented a revised policy on equitable services that ensures that all communication is stored in a centralized folder for standard reviews. Name(s) of the contact person(s) responsible for corrective action: Marcela Mahecha, Director of Federal & State Grants, Programs, and Compliance Boston Public Schools Planned completion date for corrective action plan: August 31, 2025

View Audit 395895

Finding 1201233 (2025-006)

Material Weakness 2025

City of Boston

MA

English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools review and enhance internal controls and procedures to ensure that they retain copies of correspondence with private schools to ensure completeness and accuracy of the calcula...

English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools review and enhance internal controls and procedures to ensure that they retain copies of correspondence with private schools to ensure completeness and accuracy of the calculation. Action taken in response to finding: In August 2025, Boston Public Schools developed and implemented a revised policy on equitable services that ensures that all communication is stored in a centralized folder for standard reviews. Name(s) of the contact person(s) responsible for corrective action: Marcela Mahecha, Director of Federal & State Grants, Programs, and Compliance Boston Public Schools Planned completion date for corrective action plan: August 31, 2025

View Audit 395895

Finding 1201232 (2025-005)

Material Weakness 2025

City of Boston

MA

English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools review and enhance its procedures and internal controls to ensure it charges expenditures to the program that are incurred within an award’s allowable period of performance. B...

English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools review and enhance its procedures and internal controls to ensure it charges expenditures to the program that are incurred within an award’s allowable period of performance. Boston Public Schools should enhance procedures, implement proper controls, and perform additional training over time and effort reporting. Boston Public Schools should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Documentation should be readily available for audit. Action taken in response to finding: Boston Public Schools is conducting a full review of all employees charged to Title III to ensure required time and effort documentation is complete and compliant. Name(s) of the contact person(s) responsible for corrective action: Marcela Mahecha, Director of Federal & State Grants, Programs, and Compliance Boston Public Schools Planned completion date for corrective action plan: June 30, 2027

View Audit 395895

Finding 1201231 (2025-004)

Material Weakness 2025

City of Boston

MA

English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools enhance procedures, implement proper controls, and perform additional training over time and effort reporting. BPS should not seek federal reimbursement unless it can substant...

English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools enhance procedures, implement proper controls, and perform additional training over time and effort reporting. BPS should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Documentation should be readily available for audit. Action taken in response to finding: Immediate corrective action: Boston Public Schools is conducting a full review of all employees charged to Title III to ensure required time and effort documentation is complete and compliant. Name(s) of the contact person(s) responsible for corrective action: Marcela Mahecha, Director of Federal & State Grants, Programs, and Compliance Boston Public Schools Planned completion date for corrective action plan: June 30, 2027

View Audit 395895

Finding 1201230 (2025-003)

Material Weakness 2025

City of Boston

MA

Housing Opportunities for Persons with Aids – Assistance Listing No. 14.241 Recommendation: We recommend the Mayor’s Office of Housing review and enhance internal controls and procedures to ensure that required inspections are performed timely. Action taken in response to finding: The Mayor’s Office...

Housing Opportunities for Persons with Aids – Assistance Listing No. 14.241 Recommendation: We recommend the Mayor’s Office of Housing review and enhance internal controls and procedures to ensure that required inspections are performed timely. Action taken in response to finding: The Mayor’s Office of Housing, as the HOPWA Grantee, identifies deficiencies in timely completions and documentations of HQS inspections performed by the project sponsor. The sponsor has now fully transitioned to using the Yardi system for property management activities, which will enhance inspection tracking and reporting, and has established monthly inspection monitoring reports to identify upcoming or past-due inspections. These corrective actions address the cause of missing yearly inspections and strengthen internal controls for ongoing compliance. The Mayor’s Office of Housing will ensure continued compliance through quarterly reviews of HQS inspection reports (submitted by the sponsor) and complete targeted file monitoring to verify timely completion and documentation, including any deficiency corrections. Name(s) of the contact person(s) responsible for corrective action: Kiarah Perdomenico, Housing Development Officer HOPWA program manager Planned completion date for corrective action plan: April 3, 2026

View Audit 395895

Finding 1201229 (2025-002)

Material Weakness 2025

City of Boston

MA

Economic Development Cluster - Assistance Listing No. 11.307 Recommendation: We recommend the Mayor’s Office of Workforce Development develop procedures and internal controls to ensure that all required subawards are reported timely and accurately to SAM.gov no later than the end of the month follow...

Economic Development Cluster - Assistance Listing No. 11.307 Recommendation: We recommend the Mayor’s Office of Workforce Development develop procedures and internal controls to ensure that all required subawards are reported timely and accurately to SAM.gov no later than the end of the month following the month of issuance of each subaward. Action taken in response to finding: The City has implemented a more timely FFATA review and submission procedure in FY25/FY26, however due to this award having been transferred from another organization this was not able to be submitted on Sam.gov. The City made multiple attempts to have the award updated in the system but due to this program ending, there was no contact available to remedy this issue. Name(s) of the contact person(s) responsible for corrective action: Colin Musto, Assistant City Auditor Planned completion date for corrective action plan: March 1, 2026

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Finding 1201228 (2025-001)

Material Weakness 2025

Las Torres

CA

FINDING NUMBER 2025-001 Reporting views of responsible officials: The Company has already submitted the audit package to the Federal Audit Clearinghouse and the Company will timely file the audit package with the Federal Audit Clearinghouse in the future. Auditors' summary of auditee's comments on t...

FINDING NUMBER 2025-001 Reporting views of responsible officials: The Company has already submitted the audit package to the Federal Audit Clearinghouse and the Company will timely file the audit package with the Federal Audit Clearinghouse in the future. Auditors' summary of auditee's comments on the findings and recommendations: The Company has already submitted the audit package to the Federal Audit Clearinghouse and the Company will timely file the audit package with the Federal Audit Clearinghouse in the future. Response indicator: Agree. Response: The Company has already submitted the audit package to the Federal Audit Clearinghouse and the Company will timely file the audit package with the Federal Audit Clearinghouse in the future. Completion date: September 9, 2025

View Audit 395892

Finding 1201226 (2025-003)

Material Weakness 2025

Spencer Community School District

IA

SEE RESPONSE AND CORRECTIVE ACTION PLAN AT 2025-001

View Audit 395881

Finding 1201217 (2025-010)

Material Weakness 2025

WHEATLAND COUNTY

MT

NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES , ASSISTANCE LISTING No. 10.770, YEAR ENDED JUNE 30, 2025 Name of contact person: County Commissioners Corrective Action: Wheatland County is working with its engineers to...

NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES , ASSISTANCE LISTING No. 10.770, YEAR ENDED JUNE 30, 2025 Name of contact person: County Commissioners Corrective Action: Wheatland County is working with its engineers to revise its federal programs procurement policy. This revision will include suspension and debarment requirements. Proposed Completion Date: Fiscal year 2026

View Audit 395872

Finding 1201215 (2025-001)

Material Weakness 2025

City of Waltham, Massachusetts

MA

Special Education Cluster Assistance Listing No. 84.IDEA Recommendation: We recommend management implement procedures to ensure expenses transferred to a federal grant are meeting federal procurement standards. Explanation of disagreement with audit finding: There is no disagreement with the audit...

Special Education Cluster Assistance Listing No. 84.IDEA Recommendation: We recommend management implement procedures to ensure expenses transferred to a federal grant are meeting federal procurement standards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Fiscal Coordinator, Assistant Superintendent for Finance and Operations, Assistant Superintendent for Special Education and Pupil Services and Grants Manager have all been briefed on the procurement standards. The Grants Manager has developed a grants management manual to share with all educators and administrators who are implementing grants and will meet individually with the lead person on each grant to make sure all standards and procedures are clear. The Business Office will update the Grants Requisition Form to include a field to indicate whether procurement standards have been met. Both the Grants Manager and Assistant Superintendent of Finance and Operations are required to sign off on all Grant Requisition Forms. Name(s) of the contact person(s) responsible for corrective action: Chad Mazza, Assistant Superintendent of Finance and Operations, Lisa Kingsley, Assistant Superintendent for Special Education and Pupil Services Kathleen Dowcett, Grants Manager; Lisa Butler, Fiscal Coordinator Planned completion date for corrective action plan: The Grants Manager has already established the process of meeting regularly with the lead person on each grant to share policies and procedures and monitor spending and implementation.

View Audit 395867

Finding 1201209 (2025-002)

Material Weakness 2025

The Community Partnership

MO

Recommendation: Although the small size of The Community Partnership’s accounting staff limits the extent of segregation of duties, we believe certain steps could be taken to separate incompatible duties.

View Audit 395865

Finding 1201209 (2025-002)

Material Weakness 2025

The Community Partnership

MO

Views of Responsible Officials and Planned Correction: The Board concurs with the recommendations that The Community Partnership would be best served by segregating fiscal duties as outlined above. At the current time, the additional staff sufficient to implement the recommendation is not practical ...

Views of Responsible Officials and Planned Correction: The Board concurs with the recommendations that The Community Partnership would be best served by segregating fiscal duties as outlined above. At the current time, the additional staff sufficient to implement the recommendation is not practical to move toward a level of activity which may allow us to fully implement the recommendation. The Board will remain involved in the financial affairs of the Partnership to provide oversight and independent review functions.

View Audit 395865

Finding 1201208 (2025-001)

Material Weakness 2025

The Community Partnership

MO

Recommendation: We recommend that the Board of Directors be aware of the internal control deficiencies over financial reporting and, if possible, implement procedures to ensure that The Community Partnership has the expertise necessary to prevent, detect and correct misstatements and be capable of d...

Recommendation: We recommend that the Board of Directors be aware of the internal control deficiencies over financial reporting and, if possible, implement procedures to ensure that The Community Partnership has the expertise necessary to prevent, detect and correct misstatements and be capable of drafting the financial statements, related footnote disclosures and the SEFA in accordance with generally accepted accounting principles.

View Audit 395865

Finding 1201208 (2025-001)

Material Weakness 2025

The Community Partnership

MO

Views of responsible officials and planned corrective actions: The Board believes it has personnel who possess suitable skill, knowledge, or experience to oversee services the auditor provides in assisting with financial statement presentation which requires a lower level of technical knowledge that...

Views of responsible officials and planned corrective actions: The Board believes it has personnel who possess suitable skill, knowledge, or experience to oversee services the auditor provides in assisting with financial statement presentation which requires a lower level of technical knowledge that the competence required to prepare the financial statements, related disclosures and the SEFA in accordance with generally accepted accounting principles.

View Audit 395865

Finding 1201201 (2025-001)

Material Weakness 2025

Washington State Potato Commission

WA

Finding ref number: 2025-001 Finding caption: The Potato Commission lacked adequate internal controls over and did not comply with federal suspension and debarment requirements. Name, address, and telephone of the Commission’s contact person: Brandy Tucker Washington State Potato Commission 108 Inte...

Finding ref number: 2025-001 Finding caption: The Potato Commission lacked adequate internal controls over and did not comply with federal suspension and debarment requirements. Name, address, and telephone of the Commission’s contact person: Brandy Tucker Washington State Potato Commission 108 Interlake Rd Moses Lake, WA 98837 509-765-8845 Corrective action the auditee plans to take in response to the finding: The Washington State Potato Commission (WSPC) acknowledges the audit finding and appreciates the recommendations provided by the auditors. Moving forward, we are committed to ensuring full compliance with federal requirements for the Specialty Crop Block Grant Program (SCBGP). To address this issue, the WSPC will implement stronger internal controls to verify that all contractors paid $25,000 or more, either fully or partially with federal funds, are not suspended or debarred from federal programs prior to entering into contracts. This will include regularly checking exclusion records in the U.S. General Services Administration’s System for Award Management (SAM.gov) before performing work with contractors included in SCBGP contracts. By adopting these measures, we are confident in preventing any future noncompliance and ensuring proper stewardship of federal funds. Anticipated date to complete the corrective action: We have already taken action and reviewed our current contractors and plan to do so after each annual report is submitted to WSDA/USDA to ensure they are still not suspended or debarred from federal programs.

View Audit 395861

Finding 1201199 (2025-008)

Material Weakness 2025

City of South Gate

CA

Management’s Response Regarding Corrective Action Taken or Planned Management acknowledges this finding and concurs that payroll costs charged to the Housing Choice Voucher (HCV) Program under CFDA 14.871 must be supported by records that accurately reflect actual work performed, as required under 2...

Management’s Response Regarding Corrective Action Taken or Planned Management acknowledges this finding and concurs that payroll costs charged to the Housing Choice Voucher (HCV) Program under CFDA 14.871 must be supported by records that accurately reflect actual work performed, as required under 2 CFR 200.430(i). The City's prior practice of using predetermined allocation percentages to distribute payroll across multiple funding sources did not fully satisfy the federal standards for documenting actual time worked on HCV-eligible activities. Management notes that the projected questioned costs of $214,045 represent a projection of potential unallowable payroll charges based on the sample tested, that were unsupported due to insufficient time documentation and are not necessarily unallowable. The City will coordinate with HUD to determine the appropriate resolution of these questioned costs. The corrective actions outlined in Finding 2025-007 apply equally to the HCV Program. Specifically: 1. Actual Time Reporting: All Housing Authority employees who perform HCV program activities are required to document actual hours worked per program activity on their timesheets, effective immediately. 2. Discontinuation of Fixed Allocations: Predetermined allocation percentages will no longer serve as the basis for payroll charges to the HCV Program. All charges must be supported by actual time records. 3. Timesheet System and Training: Housing Authority staff will be included in the system enhancement and training initiatives described in Finding 2025-007, with particular emphasis on documentation standards under the HCV Program's applicable requirements4. Quarterly Internal Compliance Reviews: HCV payroll charges will be included in the Accounting & Finance Division's quarterly compliance reviews, with findings reported to the City Manager and the Housing Authority Director

View Audit 395860

Finding 1201198 (2025-007)

Material Weakness 2025

City of South Gate

CA

Management’s Response Regarding Corrective Action Taken or Planned Management acknowledges this finding and concurs that payroll costs charged to federal awards must be supported by documentation accurately reflecting the actual work performed, as required under 2 CFR 200.430(i). The City's prior pr...

Management’s Response Regarding Corrective Action Taken or Planned Management acknowledges this finding and concurs that payroll costs charged to federal awards must be supported by documentation accurately reflecting the actual work performed, as required under 2 CFR 200.430(i). The City's prior practice of distributing payroll costs using predetermined allocation percentages for employees working across multiple programs did not fully satisfy federal requirements for documenting actual time expended on CDBG-eligible activities. Management notes that the projected questioned costs of $217,355 represent a projection of potential unallowable payroll charges based on the sample tested, that were unsupported due to insufficient time documentation and are not necessarily unallowable. The City is prepared to work with HUD to determine the appropriate resolution of these questioned costs. The City is implementing the following corrective actions: 1. Actual Time Reporting: Effective immediately, all employees who charge any portion of their time to federal grant programs—including CDBG—are required to document actual hours worked on each program or activity in their timesheets. Time entries must correspond to specific program activities and must be reviewed and certified by the employee's supervisor each pay period. 2. Discontinuation of Fixed Allocation Percentages: The City is eliminating the use of predetermined payroll allocation percentages as the basis for charging personnel costs to federally funded programs. Future payroll charges to federal awards will be based exclusively on actual documented hours, in compliance with 2 CFR 200.430(i). 3. Staff Training: The City will provide mandatory training to all employees who charge time to federal programs, supervisors responsible for timesheet review, and payroll staff. Training will cover the requirements of 2 CFR 200.430, the City's updated time documentation procedures, and the consequences of noncompliance.4. Quarterly Internal Compliance Reviews: Beginning in Q1 of FY 2025-26, the Accounting & Finance Division will conduct quarterly reviews of payroll charges to all federal programs to confirm that expenditures are supported by compliant time records. Results will be reported to the applicable department directors.

View Audit 395860

Finding 1201192 (2025-008)

Material Weakness 2025

Town of Greenwich, Connecticut

CT

2024-008 Material Weakness and Noncompliance, Reporting (Repeat Finding 2024-008) Audit Finding: The Town improperly included encumbrances in expenditures on three of four quarterly reports due to a lack of understanding of reporting requirements (ARPA). As this was identified at the end of FY25, th...

2024-008 Material Weakness and Noncompliance, Reporting (Repeat Finding 2024-008) Audit Finding: The Town improperly included encumbrances in expenditures on three of four quarterly reports due to a lack of understanding of reporting requirements (ARPA). As this was identified at the end of FY25, the fourth quarter report properly excluded encumbrances and reflected correction of this issue. Corrective Action Taken: As noted above and in this report, this was corrected as soon as we became aware of the issue, for fourth quarter reporting in FY25 and continues going forward. Anticipated Completion Date: In Process as of April 2025. Name and Phone # of Person Responsible for Implementation Joan Lynch, Comptroller, 203-622-2226

View Audit 395857

Finding 1201191 (2025-007)

Material Weakness 2025

Town of Greenwich, Connecticut

CT

2025-007 Material Weakness and Noncompliance, Equipment and Real Property Management (Repeat Finding 2024-007) Audit Finding: Non-federal entities other than states must follow 2 CFR sections 200.313 (c) through (e) which require that property records must be maintained that include a description of...

2025-007 Material Weakness and Noncompliance, Equipment and Real Property Management (Repeat Finding 2024-007) Audit Finding: Non-federal entities other than states must follow 2 CFR sections 200.313 (c) through (e) which require that property records must be maintained that include a description of the property, a serial number or other identification number; the source of funding for the property, who holds the tile, the acquisition date, cost of property and other info. The Town could not provide property records including all required information as indicated in the 2 CFR section 200.313 (d)(1). The Town did not perform a physical inventory of the property. Corrective Action Taken: Management acknowledges the requirement for periodic physical inventory of federally funded assets. Given that such purchases are infrequent and currently limited to furniture used daily, we have determined that a full-scale inventory is not costeffective at this time. The assets remain in high-use public areas, providing constant visual verification of their existence. Management will formalize a physical inventory process should the volume or value of federally funded assets reach a material threshold. Anticipated Completion Date: Not applicable. Name and Phone # of Person Responsible for Implementation Joan Lynch, Comptroller, 203-622-2226

View Audit 395857

Finding 1201190 (2025-006)

Material Weakness 2025

Town of Greenwich, Connecticut

CT

2025-006 Material Weakness and Noncompliance, Suspension and Debarment (Repeat Finding 2024-005) Audit Finding: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with provisions of procurement, suspension, and debarment...

2025-006 Material Weakness and Noncompliance, Suspension and Debarment (Repeat Finding 2024-005) Audit Finding: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with provisions of procurement, suspension, and debarment. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Documentation that such a verification was done must be maintained. The Town did not have documentation to support verification that three vendors were not excluded from federal contract due to debarment or suspension. Corrective Action Taken: The Town and Board of Education (BOE) have enhanced procurement controls to ensure suspension and debarment verifications are documented in accordance with 2 CFR 200.214. BOE’s Procurement Department routinely reviews SAM.gov to verify suspension and debarment status for all contracts, regardless of the funding source. Moving forward, a verification sheet will be included with all contract documentation. Additionally, BOE personnel involved in the procurement process have received training on applicable federal compliance requirements. The Procurement Department will also require vendors to complete suspension and debarment certification forms, which will be maintained within the Munis system by the Accounting Department. Anticipated Completion Date: In Process as of July 2025. Name and Phone # of Person Responsible for Implementation Joan Lynch, Comptroller, 203-622-2226

View Audit 395857

Finding 1201184 (2025-005)

Material Weakness 2025

Town of Greenwich, Connecticut

CT

2025-005 – Significant Deficiency and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2024-001. Severity downgraded from material weakness to significant deficiency due to corrective actions implemented.) Audit Finding: There were seve...

2025-005 – Significant Deficiency and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2024-001. Severity downgraded from material weakness to significant deficiency due to corrective actions implemented.) Audit Finding: There were several required adjustments and corrections to the Schedule of Expenditures of Federal Awards (SEFA) and the Schedule of Expenditure of State Financial Assistance (SESFA) as follows: (1) Six federal programs were missing or had an incorrect assistance listing number. (2) One program improperly included on the SESFA that was moved to the SEFA. (3) One program improperly included under the incorrect oversight agency. (4) One program improperly reported as a direct grant. (5) One state program requiring adjustment to decrease the reported expenditures by $250,481. (6) Three programs improperly included as exempt programs. (7) One program had an incorrect state grant ID. Corrective Action Taken: The Town Finance Department has placed an emphasis on timely tracking and reporting of grants, as can be seen from the improvement from material weakness to significant deficiency. The SEFA and SESFA will be prepared throughout the year by Town Finance, who will also maintain copies of all grant agreements. All positions in the BOE Finance Department and Town Finance have now been filled, and the Director of Finance at the BOE has implemented monthly reconciliation procedures. From the Town side, the reconciliations between the GAAP financial statements and amounts reported on the SEFA and SESA will be overseen by the Deputy Comptroller. The Deputy Comptroller and BOE Director of Finance meet regularly to discuss updates and issues and will reconcile the June 30, 2026 reports in the first quarter of FY2027. Anticipated Completion Date: In Process as of July 2025 Name and Phone # of Person Responsible for Implementation

View Audit 395857

Finding 1201175 (2025-005)

Material Weakness 2025

Virginia Housing Development Authority

VA

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – Housing Assistance Payments Recommendation: We recommend the Authority strengthen its controls to ensure proper documentation is maintained and that HAP contracts, payment standards, and HAP amounts are accurately applied and re...

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – Housing Assistance Payments Recommendation: We recommend the Authority strengthen its controls to ensure proper documentation is maintained and that HAP contracts, payment standards, and HAP amounts are accurately applied and reviewed for compliance by its Agents. 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 - Implementing additional HAP calculation validation steps - Enhancing payment standard cross-check procedures 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 1201172 (2025-004)

Material Weakness 2025

Virginia Housing Development Authority

VA

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

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – Waiting List Recommendation: We recommend the Authority review its Agent’s internal controls over the waiting list process to ensure all documentation is maintained at the time each applicant is selected from the waiting list and that applicants are added to the waitlist accurately. We recommend 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: The Authority recognizes the need to strengthen documentation controls at the point of applicant selection. As part of its broader compliance review, the Authority is evaluating improvements to waiting list procedures. This includes reviewing documentation requirements, selection verification protocols, and file completeness standards. Enhancements under consideration include: - Providing training to LHAs on waiting list management, referral processes, extension documentation, and documentation retention requirements - Incorporating a quality control (QC) review of referrals to special purpose voucher programs to ensure documentation, eligibility verification, and notification records are consistently maintained - Strengthening monitoring procedures to validate that required documentation is retained at the time of selection 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 1201169 (2025-003)

Material Weakness 2025

Virginia Housing Development Authority

VA

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – HQS Annual and Failed Inspections Recommendation: We recommend that the Authority reviews its Agent’s processes related to annual and failed HQS inspections to ensure that inspections are completed in a timely manner and in comp...

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – HQS Annual and Failed Inspections Recommendation: We recommend that the Authority reviews its Agent’s processes related to annual and failed HQS inspections to ensure that inspections are completed in a timely manner and in compliance with HUD and the Authority’s requirements. We further recommend that the Authority review its Agent’s procedures to ensure appropriate follow up is performed to confirm that tenants or landlords make required corrections timely, or that housing assistance payments (HAP) are properly abated for the unit until such corrections are made. We recommend the Authority work with its Agent’s to alleviate any inspector shortage. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority has taken proactive steps to enhance its inspection process to ensure compliance with HUD requirements. As part of these efforts, the Authority has contracted with a third-party vendor to manage all inspection activities statewide. This partnership is designed to improve the efficiency, consistency, and timeliness of inspections, strengthen follow-up procedures for failed inspections, and support more uniform enforcement of abatement requirements when necessary. Full implementation of the third-party inspection services occurred on April 1, 2025, approximately two months prior to the end of the audit reporting period. While the timing limited the impact reflected in this audit cycle, the Authority believes this represents an effective control enhancement. Virginia Housing will continue to monitor inspection timeliness, reinspection compliance, and abatement processing trends to evaluate performance and confirm that this action results in measurable improvement in future audit outcomes. Virginia Housing is evaluating the possibility of implementing a tracking dashboard for inspection timelines and abatement periods and will continue to meet with the third-party vendor bi-weekly to ensure progress is made. Name of the contact person responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives

View Audit 395856

Finding 1201166 (2025-002)

Material Weakness 2025

Virginia Housing Development Authority

VA

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

Corrective Action Plans

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