Eligibility Housing Voucher Cluster Material Weakness in Internal Controls Material Noncompliance Condition: Out of an approximate population of 5,800 Housing Voucher Cluster tenants we tested 41 tenants and the following deficiencies were noted: • 10 files were missing 214 forms, • 9 files had incorrect income or missing income support, • 9 files were missing identification for adults in the household, • 8 files were missing birth certificates or other support for minors receiving income credits, • 6 units did not have the required inspections performed, • 3 files had late recertifications, • 3 files were missing valid 9886 forms, • 1 file was missing support of rent reasonableness that was required to be performed d uring the year for that unit, • 1 file was missing required asset support, and • I file contained an incorrect payment standard. A uditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor's sample. Action Taken: Via a nationwide Request for Proposal, HACM hired the contractor, CVR Associates, Inc. (CVR) to manage and operate the entire Housing Choice Voucher program for HACM, effective January 2, 2025. This contract is currently overseen by the Acting Secretary-Executive Director and will be overseen by the Chief Operations Officer once a new one is hired. CVR was selected as the contractor in part due to their extensive experience in managing similar voucher programs nationwide and on their tools/software that they have developed to manage items, such as quality control testing in the areas such as the items noted above. CVR provided additional training to staff, prepared new standard operating procedures, a nd perform quality control testing over the course of the entire year. Many of the SEMAP indicators have improved, but some have additional improvement still needed based on the 2025 SEMAP results. When there are issues, the CVR Quality Control team follows up with the staff person to correct the issue, and to provide guidance or additional training with the goal to reduce the error rate in the future. We believe that HACM will be back to being a standard performer or higher in 2026 in general for SEMAP Name of Responsible Person: Ken Barbeau, Acting Secretary-Executive Director; Chief Operations Officer (once hired); Projected Completion Date: December 31, 2026