Finding 1201166 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-30

AI Summary

  • Core Issue: The PHA failed to submit required tenant information to HUD, with 8 out of 60 files missing in the PIC system.
  • Impacted Requirements: Compliance with electronic submission rules for tenant changes and family reports as mandated by HUD regulations.
  • Recommended Follow-Up: Review and enhance the data upload process to ensure timely and accurate submissions of HUD-50058 recertifications.

Finding Text

PIC Submissions Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879/14.EHV Federal Award Identification Number and Year: VA901; 2024-2025 Award Period: July 1, 2024 through June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The PHA is required to submit this form electronically to HUD each time the PHA completes an issuance, admission, annual reexamination, interim reexamination, portability move-in, expiration, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: During our testing of 60 tenant files for special reporting requirements, we noted the following in 8 files: - 8 out of 60 files could not be located within PIC. Questioned costs: None Cause: During the audit period, staffing transitions, system adjustments, and evolving reporting requirements affected the consistency of transmission monitoring and reconciliation processes. Controls to verify successful submission and confirmation of all required transactions were not formally reconciled on a recurring basis. In response, Virginia Housing has engaged a consultant to assist with PIC submission oversight and reconciliation. As a result of this engagement, the Authority has significantly reduced the number of late and missing submissions. In addition, training for the Systems Team is underway to strengthen internal capacity, improve understanding of submission protocols, and enhance ongoing monitoring controls. While improvements have already been realized, enhancements were implemented after the audit testing period and were not fully reflected in the sample reviewed. Effect: The lack of internal controls over the PIC submission process could result in information not being submitted to HUD timely. Repeat Finding: This finding is a repeat finding in the immediate prior year. Prior year finding numbers were 2024-006 and 2023-001. 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. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

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

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1201161 2025-001
    Material Weakness Repeat
  • 1201162 2025-001
    Material Weakness Repeat
  • 1201163 2025-001
    Material Weakness Repeat
  • 1201164 2025-002
    Material Weakness Repeat
  • 1201165 2025-002
    Material Weakness Repeat
  • 1201167 2025-003
    Material Weakness Repeat
  • 1201168 2025-003
    Material Weakness Repeat
  • 1201169 2025-003
    Material Weakness Repeat
  • 1201170 2025-004
    Material Weakness Repeat
  • 1201171 2025-004
    Material Weakness Repeat
  • 1201172 2025-004
    Material Weakness Repeat
  • 1201173 2025-005
    Material Weakness Repeat
  • 1201174 2025-005
    Material Weakness Repeat
  • 1201175 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.117 MORTGAGE INSURANCE HOMES $701.25M
14.U01 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE BACKED SECURITIES PROGAM (NOTE 4) $190.35M
64.114 VETERANS HOUSING GUARANTEED AND INSURED LOANS $130.33M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $3.56M
14.879 MAINSTREAM VOUCHERS $3.23M
21.026 HOMEOWNER ASSISTANCE FUND $2.30M
14.169 HOUSING COUNSELING ASSISTANCE PROGRAM $1.02M
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $175,622