FAC Explorer

Finding 1228246 (2025-009)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-08-28
Audit: 409993
Organization: District of Columbia Housing Authority (MD)
Auditor: CLIFTONLARSONALLEN LLP

AI Summary

  • Core Issue: The Authority is not complying with federal eligibility requirements for low-income families, leading to potential miscalculations in tenant rent and Housing Assistance Payments (HAP).
  • Impacted Requirements: Key documentation for tenant eligibility, including income verification and inspection evidence, is missing or incomplete in multiple files.
  • Recommended Follow-Up: Review and strengthen internal controls to ensure all eligibility documentation is complete, accurate, and readily available for audits.

Finding Text

Federal Authority: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Moving To Work Demonstration Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001 - 2025 Award Period: October 1, 2024 – September 30, 2025 Type of Finding: • Material Noncompliance and Material Weakness in Internal Control over Compliance for Eligibility Criteria or specific requirement: Beneficiaries must be "low-income families," as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a(b)(2)) (Section 204(b) of Pub. L. No. 104-134 (42 USC 1437f (note))). Condition: Housing Choice Vouchers - During testing, we identified the following eligibility issues in twenty separate files: • 6 out of 60 sampled tenant files lacked documentation supporting income eligibility. • 2 out of 60 sampled tenant files did not include evidence of annual inspections completed during the year. • 14 out of 60 sampled tenant files did not contain a QC checklist signed off by a specialist. • 1 out of 60 sampled tenant files did not have inspector signoff on the inspection performed during the year. • 4 out of 60 sampled tenant files did not follow the simplified recertification process. Public Housing Program - During testing, we identified the following eligibility issues in four separate files: • 1 out of 60 sampled tenant files lacked documentation supporting income eligibility. • 1 out of 60 sampled tenant files did not include evidence of annual reexaminations completed during the year. • 1 out of 60 sampled tenant files did not accurately reflect annual income obtained from the Enterprise Income Verification (EIV) system. • 1 out of 60 sampled tenant files did not verify that the tenant was under the low-income limit. Questioned costs: Unknown. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent or HAP may have been miscalculated due to using incorrect information in the calculations. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: Yes; 2024-021 Recommendation: We recommend that the Authority staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of responsible officials: Management agrees with the finding. Refer to the corrective action plan on current findings in this report.

Corrective Action Plan

Moving To Work Demonstration Program – Assistance Listing No. 14.881 Material Weakness in Internal Control over Compliance -Eligibility Recommendation: We recommend the Authority staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken or planned in response to finding: Standardized quality control procedures will be implemented to ensure biennial recertifications are completed within HUD-required timeframes, annual family income is accurately calculated and verified using all required third-party documentation, and form HUD-50058 is completed, reviewed, and transmitted to HUD promptly. Management will establish automated tracking and milestone alerts, conduct supervisory reviews before certification, provide staff training on HUD eligibility/continued occupancy requirements, perform routine quality assurance reviews, and monitor performance through monthly compliance reports to ensure sustained adherence to HUD regulations. Periodic quality assurance reviews will be conducted to identify deficiencies, provide corrective training, and ensure documentation is readily available to support HUD monitoring and audit requirements. Name(s) of the contact person(s) responsible for corrective action: Carolyn Kornegay Punter; Aisha Thompson; Anton Shaw; and Khaliah Payne. Planned completion date for corrective action plan: December 31, 2026 – End of 1st Quarter, FY2027.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1228247 2025-010
    Material Weakness Repeat
  • 1228248 2025-010
    Material Weakness Repeat
  • 1228249 2025-010
    Material Weakness Repeat
  • 1228250 2025-011
    Material Weakness Repeat
  • 1228251 2025-011
    Material Weakness Repeat
  • 1228252 2025-011
    Material Weakness Repeat
  • 1228253 2025-012
    Material Weakness Repeat
  • 1228254 2025-012
    Material Weakness Repeat
  • 1228255 2025-012
    Material Weakness Repeat
  • 1228256 2025-013
    Material Weakness Repeat
  • 1228257 2025-013
    Material Weakness Repeat
  • 1228258 2025-013
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.881 MOVING TO WORK DEMONSTRATION PROGRAM $474.49M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $16.03M
14.879 MAINSTREAM VOUCHERS $2.01M
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $1.49M
14.249 SECTION 8 MODERATE REHABILITATION SINGLE ROOM OCCUPANCY $1.17M
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $315,226