Finding 1228258 (2025-013)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-08-28

AI Summary

  • Core Issue: The PHA failed to maintain proper documentation for waiting list selections, leading to noncompliance with HUD requirements.
  • Impacted Requirements: Written policies for waiting list selection and notification procedures were not followed, violating specific HUD regulations.
  • Recommended Follow-Up: Implement stronger controls to ensure all necessary documentation is collected and maintained for each applicant selected from the waiting list.

Finding Text

Federal Authority: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: DC001 - 2025 Award Period: October 1, 2024 – September 30, 2025 Type of Finding: • Noncompliance and Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions – Waiting List Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). When a family has been selected from the waiting list, the PHA must notify the family (24 CFR 982.544(a)). Each family member, regardless of age, must submit the following evidence to the responsible entity: For U.S. citizens or U.S. nationals, the evidence consists of a signed declaration of U.S. citizenship or U.S. nationality. The responsible entity may request verification of the declaration by requiring presentation of a United States passport or other appropriate documentation, as specified in HUD guidance. (24 CFR 5.508) Condition: During testing, we identified the following eligibility issues in four separate files: • For 1 of the 60 files tested, there was no documentation indicating the reason why a tenant was not admitted to the program. • For 3 of the 60 files tested, there was no documentation indicating that the tenant was notified that they have reached the top of the waiting list. Questioned costs: Unknown Cause: The Authority did not sufficiently monitor controls to ensure compliance with waiting list requirements. Effect: The lack of internal controls over the waiting list requirements could result in individuals not being selected or housed in accordance with the Authority’s and HUD’s requirements. Repeat Finding: No Recommendation: We recommend the Authority implements controls over the waiting list process to ensure all documentation is maintained at the time of each applicant is selected from the waiting list. Views of responsible officials: Management agrees with the finding. Refer to the corrective action plan on current findings in this report.

Corrective Action Plan

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879 Material Weakness in Internal Control over Compliance for Special Tests and Provisions –Waiting List Recommendation: We recommend the Authority implements controls over the waiting list process to ensure all documentation is maintained at the time of each applicant is selected from the waiting list. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken or planned in response to finding: DCHA will re-establish the nonoperational Eligibility and Continued Occupancy Division (ECOD). ECOD will be responsible for waitlist management for the agency along with screening applicants for eligibility. Having these functions under one distinct division will allow DCHA to have standard operating procedures and workflows that are consistent with HUD’s regulations and requirements regarding waitlist management. Periodic quality assurance reviews by the Quality Assurance team 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; and Khaliah Payne. Planned completion date for corrective action plan: June 30, 2027 – End of 3rd Quarter, FY2027.

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 1228246 2025-009
    Material Weakness Repeat
  • 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

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