Finding 2025-001 U.S. Department of Housing and Urban Development Moving to Work Demonstration Program - ALN 14.881 Eligibility and Reporting Repeat Finding from 2021 (2021-001), 2022 (2022-001), 2023 (2023-001), and 2024 (2024-001) Maher Duessel Finding Condition: During our review of 40 tenant files prepared by the Housing Authority of the City of Pittsburgh (Authority) as part of the biennial reexamination process, we noted a lack of functioning internal controls, evidenced by 4 of the Authority’s internal control checklists not being completed or unable to be provided for audit, which led to the below exceptions in our testing. We noted two instances where a tenant recertification using the Form HUD-50058, Family Report (Form) (which provides eligibility and reporting information) was not completed on a timely basis. We also noted three instances where other documentation to support the reporting and eligibility assessment as part of completion of the HUD- 50058 was not provided. This includes items such as support for income calculation and medical deductions. These exceptions indicate a lack of functioning internal controls and oversight to ensure compliance with HUD requirements related to timely and accurate tenant recertifications. HACP Management Response/Action Taken: Finding 2025-001 - Eligibility and Reporting Finding 2025-002 - U.S. Department of Housing and Urban Development Housing Voucher Cluster: Section 8 Housing Choice Vouchers and Mainstream Vouchers- ALNs 14.871 & 14.879 Eligibility and Reporting Summary and Corrective Action Plan: The audit identified continued, internal control weaknesses related to timely recertifications, completion of required internal control checklists, and documentation supporting income calculations and medical deductions. This is a repeat finding from 2021-2024. To address these deficiencies, the HACP plans to go live on October 1st, 2026, with BOB.ai, an artificial intelligence software solution platform built for Public Housing Authorities (PHAs) to assist with tasks to include rent calculations, recertifications, and case management. BOB.ai will support the timely processing and tracking of recertifications, helping to prevent late recertifications and identify outstanding actions before deadlines are missed. The system will also help ensure required forms and supporting documentation are submitted in full before the recertification is processed, reducing the risk of incomplete files and missing eligibility documentation. The HACP Housing Choice Voucher (HCV) Department is evaluating an additional workflow in DocuClass that will include a finalized checklist as part of the recertification workflow. The checklist will confirm that all required documents, eligibility information, and supporting documentation have been received and reviewed before the recertification is finalized. The HACP will utilize system-generated reports to monitor upcoming and overdue recertifications, with management regularly reviewing the reports and addressing outstanding items. Staff must complete all applicable internal control checklists, and supervisors will review files to confirm that required documentation and checklists are complete. The HCV management will perform the following actions to assist with ensuring internal compliance to include the following: Conduct ongoing quality-control reviews and provide staff training on HUD-50058 requirements, documentation standards, and timeliness expectations. • Address recurring deficiencies through documented coaching and corrective action, as appropriate. • Continue to monitor recertification timeliness, documentation completeness, and internal control compliance through monthly reports and file reviews to ensure the corrective actions are effective and prevent recurrence of the finding. • Monitor control functions, staff productivity, work completion, and compliance with established processing timelines. These enhanced monitoring practices have increased management’s ability to identify work that is incomplete, delayed, or otherwise not meeting established performance expectations. • Holding staff accountable through documented coaching, performance management, and disciplinary action, when appropriate, in accordance with applicable HACP policies and procedures. Unfortunately, in some instances, the time required to identify, document, address, and monitor recurring performance deficiencies through the applicable disciplinary process results in work becoming overdue before the HACP can complete the personnel action or otherwise resolve the underlying staffing issue.The HACP recognizes the operational impact of these circumstances and is continuing to strengthen workload monitoring, supervisory oversight, and system-generated alerts. Also, workflow controls are being utilized to identify and address deficiencies as early as possible and minimize the impact of staff turnover and performance-related delays on program operations.