The FY 2025 audit identified continuing exceptions involving Public Housing tenant files, including HUD Form 50058 completion and income-calculation accuracy. The finding was identified as a repeat compliance matter. HACC agrees with the finding and is strengthening the controls used to prevent, identify, and correct file deficiencies. Management Response and Corrective Action 1. Dedicated Compliance Oversight. HACC has added dedicated compliance capacity to review Public Housing tenant files and monitor adherence to HUD eligibility, income calculation, rent determination, recertification, and documentation requirements. Housing Authority of the County of Chester “On the Road to Excellence” Public Housing Housing Choice Vouchers Family Self Sufficiency Homeownership Board of Commissioners Patrick Bokovitz, Chair Theodore F. Claypoole, Treasurer Donnell Sheppard, Secretary Daniel Garcia, Resident Board Member Solicitor: Brian Leinhauser MacMain Law Executive Director/CEO Paul Diggs Housing Authority of the County of Chester 30 West Barnard Street, Suite 2 West Chester, PA 19382 Phone 610-436-9200 * Fax 610-436-9203 www.The HACCnet.org 2. Pre-Completion Quality Control. Annual and interim recertification files will undergo a standardized quality-control process. HACC will review required documents, including HUD Form 50058, income verification, deductions, allowances, and rent calculations, for completeness and accuracy. 3. Standardized File Checklists. HACC will use standardized file checklists to identify required eligibility, income, verification, consent, recertification, and rent-calculation documentation. The checklist will become part of the tenant file. 4. Corrective Review of Existing Files. Management will conduct targeted reviews of existing Public Housing tenant files to identify missing documents or calculation errors. Deficiencies identified during the review will be corrected and documented. 5. Staff Training. Public Housing staff responsible for eligibility, admissions, occupancy, rent calculations, and recertifications will receive periodic training addressing HUD requirements, income calculations, HUD Form 50058, and HACC policies and procedures. 6. Supervisory Accountability. Public Housing management will monitor compliance results and require corrective action when recurring deficiencies are identified. Management will address error patterns through additional training, coaching, procedural changes, and, when appropriate, employee performance management. 7. Ongoing Quality-Control Sampling. HACC will perform periodic random file reviews throughout the year rather than relying solely upon annual audit testing to identify deficiencies. HACC will document and report results to senior management. 8. Independent Third-Party Quality Control Review. During FY 2026, HACC is engaging an independent third-party quality-control and compliance firm to conduct comprehensive reviews of Public Housing tenant files. The review will evaluate file completeness, eligibility documentation, income and rent calculations, HUD Form 50058 accuracy and timeliness, required verifications, and other applicable HUD compliance requirements. The firm's work will supplement, not replace, HACC's internal compliance and supervisory review processes. Responsible Officials: Executive Vice President/Sr. Assent Manager and designated Compliance staff, under the oversight of the Executive Director/CEO. Implementation Status/Timeline: Corrective actions are underway during FY 2026 and will remain part of HACC's ongoing compliance and quality-control process.