D.C. HOUSING AUTHORITYLocal Government

Finding 2024-021 U.S. Department of Housing and Urban Development (HUD) AL No. 14.881 Moving to Work Demonstration Material Weakness in Internal Controls over Compliance for Eligibility Repeat Finding: Yes; 2023-002 Condition: • For 11 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period. • For 8 out of 60 beneficiaries selected for eligibility, we were unable to recalculate annual family income listed in the tenant file based up the support provided by management. • For 4 out of 60 beneficiaries selected for eligibility, we were not provided a HUD-50058. Criteria: 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))). 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 may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Recommendation We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-022 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Eligibility Repeat Finding: Yes; 2023-003 Condition: • For 13 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period. • For 2 out of 60 beneficiaries selected for eligibility, we did not observe 3rd party verification of reported income. Criteria For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). 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 recalculations. Tenant recertifications were not shown to be performed on a timely basis. Recommendation We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Condition • For 47 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 7 of 60 files tested, the unit failed reinspection and there was no documentation that the unit was properly placed under abatement. Criteria When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404). Questioned Costs Unknown. Cause The Authority did not reinspect or abate units timely. Effect The Authority is not in compliance with HQS enforcement requirements. Recommendation We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated. Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Condition • For 8 of the 60 samples, we were unable to view biennial inspections being performed. Criteria The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS). The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Questioned Costs Unknown. Cause The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect The Authority is not in compliance with federal regulations regarding HQS inspections. Recommendation We recommend the Authority implements controls to ensure that HOS inspections are completed in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Condition • For 47 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 7 of 60 files tested, the unit failed reinspection and there was no documentation that the unit was properly placed under abatement. Criteria When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404). Questioned Costs Unknown. Cause The Authority did not reinspect or abate units timely. Effect The Authority is not in compliance with HQS enforcement requirements. Recommendation We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated. Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Condition • For 8 of the 60 samples, we were unable to view biennial inspections being performed. Criteria The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS). The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Questioned Costs Unknown. Cause The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect The Authority is not in compliance with federal regulations regarding HQS inspections. Recommendation We recommend the Authority implements controls to ensure that HOS inspections are completed in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Finding: 2024-025 U.S. Department of Housing and Urban Development AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance/ Material Noncompliance for Special Tests and Provisions – Rent Reasonableness Repeat Finding: Yes 2023-007 Condition • For 3 of the 60 files tested, the amount documented as the reasonable rent was less than the rent to the owner noted on the HUD-50058. • For 7 of the 60 files tested, we were not provided with proper documentation to determine that the rent comparability was performed. Criteria The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract: (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Questioned Costs Unknown. Cause The Authority did not sufficiently monitor controls to ensure compliance with reasonable rent requirements. Effect The Authority is not in compliance with federal regulations regarding the required reasonable rent requirements. Recommendation We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2023 Award Period: October 1, 2022 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) 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))). The Authority must ensure that housing assisted under the demonstration meets housing quality standards established or approved by HUD (Section 204(c)(3)(E) of Pub. L. No. 104-134 (42 USC 1437f (note))). Condition/Context: A sample of 80 tenant files tested for eligibility over MTW-LRPH (40) and MTW-HCV (40) found exceptions in 10 of the 40 MTW-LRPH files tested and 13 of the 40 MTW-HCV files tested. The following MTW-LRPH exceptions were noted: • For 5 of 40 files tested, support was provided, however, CLA did not observe a HUD-50058 with an effective date prior to, and effective for, the rent payment pulled from rent roll. As a result, we were unable to test the sample. • For 4 of the 40 files tested, we were unable to recalculate annual family income listed in the tenant file to the backup support provided. We either did not observe backing support to recalculate the annual income listed on the tested HUD-50058 or we did not receive the EIV report. • For 1 of 40 files tested, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 1 of 40 tenant files tested, we did not observe a recertification checklist, or the signed Application for Applied Occupancy completed by the specialist. The following MTW-HCV exceptions were noted: • For 1 of the 40 files tested, we were unable to recalculate annual family income listed in the tenant file to the backup support provided. We either did not observe backing support to recalculate the annual income listed on the tested HUD-50058 or we did not receive the EIV report. • For 5 of the 40 files tested we were unable to determine that recertifications were completed on a biennial basis. • For 8 of the 40 files tested, we were not provided with the quality control checklist signed by a housing assistant specialist. • For 1 of the 40 files tested, the HAP per the HUD-50058 did not agree to the HAP payment selected for testing; as a result, we were unable to verify the supporting documentation provided was for the HAP payment selected. Questioned Costs: Unable to determine. 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 may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2022-002 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2023 Award Period: October 1, 2022 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or Specific Requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition/Context: Exceptions noted in 27 out of 40 non-MTW HCV files tested: • For 3 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 13 of 40 samples, we were unable to recalculate the income total listed on the HUD-50058 based on the income support provided. • For 11 of 40 samples, we did not observe 3rd party verification of reported income. • For 4 of 40 samples, we did not observe 3rd party verification of reported assets. • For 4 of 40 samples, we did not observe documentation showing that the head of household was the parent or legal guardian to a dependent for which an allowance was granted or we did not receive documentation for medical expenses. • For 14 of 40 samples, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 11 of 40 samples, we did not observe the "Authorization for Release of Information/Privacy Act Notice form (HUD-9886) singed by the tenant and all members in the household over the age of 18 for the recertification date listed. • For 5 of 40 samples, we did not observe the general release form signed by the tenant and all members in the household over the age of 18, allowing the Authority to obtain information from third parties. • For 8 of 40 samples, we did not observe a recertification checklist, or a substitute application, showing a specialist's signature. Questioned Costs: Unable to determine. 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 recalculations. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2022-003 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2023 Award Period: October 1, 2022 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or Specific Requirement: When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404). Condition/Context: Exceptions noted in 22 of 22 files tested: • For 21 of 22 files tested, the file did not include the results letter to document the failed inspection and the required correction period for any deficiencies. • For 19 of 22 files tested, the file did not contain a pass inspection report documenting repairs were completed. • For 19 of 22 files tested, the file did not contain documentation that the unit was properly placed under abatement and/or HAP was not paid under the abatement period. • For 19 of 22 files tested, the file did not contain documentation showing whether the tenant failed to correct deficiencies and that the PHA took proper steps to enforce the family obligations. Questioned Costs: Unable to determine. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: The finding is a repeat of finding 2022-004 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2023 Award Period: October 1, 2022 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or Specific Requirement: The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS). The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition/Context: Exceptions noted in 29 of 40 units: • For 29 of the 40 samples, we were unable to view biennial inspections being performed. • For 29 of the 40 samples, we were unable to view that HQS inspections were completed in accordance with the HCVP Admin plan. • For 18 of the 40 samples, we did not receive the completed letter from the DCHA specialists notifying the landlord and tenant in writing of the inspection. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements. Effect: The Authority is not in compliance with federal regulations regarding HQS inspections. Repeat Finding: The finding is a repeat of finding 2022-005 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2023 Award Period: October 1, 2022 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) 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. Except as provided in 24 CFR section 982.203 Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition/Context: Exceptions noted in 14 of the 40 samples: • For 13 of the 40 files tested, we were not provided with the voucher issuance or denial letter applicable, nor was the application signed or electronically signed. • For 1 of the 40 files tested, we were not provided with supporting documentation. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with new tenant selection requirements. Effect: The Authority is not in compliance with federal regulations regarding the required new tenant selection requirements. Repeat Finding: The finding is a repeat of finding 2022-006 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained for new tenants. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2023 Award Period: October 1, 2022 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or Specific Requirement: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition/Context: Exceptions noted in 12 of the 35 samples selected for new tenants: • For 6 of the 35 files tested, we were unable to determine that the rent was determined reasonable for the unit in accordance with the administrative plan. • For 12 of the 35 files tested, we were not provided with proper documentation to determine that the rent comparability was performed prior to the effective date. We were not provided documentation for 3 of the 10 files tested for contract rent changes during the term of the HAP contract. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reasonable rent requirements. Effect: The Authority is not in compliance with federal regulations regarding the required reasonable rent requirements. Repeat Finding: The finding is a repeat of finding 2022-007 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2023 Award Period: October 1, 2022 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or Specific Requirement: The PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition/Context: Exceptions noted in 13 of the 40 files tested: • For 1 of the 40 files tested, we were not provided with any of the documentation requested. • For 5 of the 40 files tested, the HAP amount on the HUD-50058 did not equal the amount included in the HAP register. • For 10 of the 40 files tested, we were not provided with the signed checklist. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with HAP contract and register requirements. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: The finding is a repeat of finding 2022-008 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that files are maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2023 Award Period: October 1, 2022 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or Specific Requirement: PHA's must submit timely GAAP-based unaudited and audited financial information electronically to HUD (see Section 13, Moving to Work (MTW) Agencies Reporting to FASS-PH, of Notice PIH-2012-21 (HA), issued May 10, 2012). Condition/Context: Exception noted for the timeliness of the submission. Questioned Costs: Unable to determine. Cause: The Authority did not submit their financial report to HUD in a timely manner. Effect: The Authority is not in compliance with financial reporting requirements. Repeat Finding: The finding is a repeat of finding 2022-009 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that financial reporting is completed and submitted timely. Views of Responsible Officials: There is no disagreement with the audit finding

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2023 Award Period: October 1, 2022 – September 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: MTW Agencies must ensure that housing assisted under the demonstration program meets housing quality standards established or approved by the Secretary. The HCV program regulations at 24 CFR sections 982.401 through 982.405 set forth basic housing quality standards (HQS) which all units must meet, and the PHA must verify by inspection, before initial assistance can be paid on behalf of a family and at least annually throughout the term of the assisted tenancy. Current HQS regulations consist of 13 key aspects of housing quality, performance requirements, and acceptability criteria to meet each performance requirement. HQS include requirements for all housing types, including single and multi-family dwelling units, as well as specific requirements for special housing types, such as manufactured homes, congregate housing, single room occupancy, shared housing, and group residences (Section 204(c)(3)(E) of Pub. L. No. 104-134 (42 USC 1437f (note))). Condition/Context: For 4 of the 40 files tested, we were unable to view support for biennial inspections being performed. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements. Effect: The Authority is not in compliance with federal regulations regarding HQS inspections. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordance with their admin plan. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2023 Award Period: October 1, 2022 – September 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: PHAs may use HCVP and MV funds only for HAPs to participating owners, and for associated administrative fees (24 CFR sections 982.151 and 982.152). Accumulated administrative fees prior to fiscal year 2004, may be used for any housing-related purpose. Unspent administrative fees accumulated post fiscal year 2003 (i.e., fees from fiscal year 2004 and later funding, see III.L.1.e.(4)(a), “Financial Reporting –Financial Reports”) may be used only to support the HCVP. These funds still are considered to be administrative fee reserves and are subject to all of the requirements applicable to administrative fee reserves including, but not limited to, those in 24 CFR section 982.155. The fees accumulated from fiscal year 2004 and later funding must be used for activities related to the provision of tenant-based rental assistance authorized under Section 8 of the United States Housing Act of 1937, including related development activities. PHAs must maintain and report balances for both funding sources (see notice PIH 2015-17 (HA) dated October 6, 2015) (Division I, Title II, Section (5) of Consolidated Appropriations Act, 2005, Pub. L. No. 108-447, 118 Stat. 3296, and subsequent appropriations acts; see Section 5 of Notice PIH 2005-01; 24 CFR section 982.155). Condition/Context: An unallowable transfer of administrative fees was noted and corrected during the audit. Questioned Costs: $1,059,302 Cause: The Authority did not sufficiently monitor controls to ensure compliance with allowable transfer requirements. Effect: The Authority is not in compliance with federal regulations related to allowable transfer requirements. Repeat Finding: No. Recommendation: We recommend management the Authority implements controls to ensure that transfers are not made out of the program. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2023 Award Period: October 1, 2022 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or Specific Requirement: The PHA is required to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 4 of the 40 samples. Exceptions included discrepancies between the HUD-50058 and the uploaded recertification and lack of support provided. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements. Effect: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Repeat Finding: The finding is a repeat of finding 2022-011 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2023 Award Period: October 1, 2022 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or Specific Requirement: The PHA is required to submit the HUD-50058 Family Report form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 3 of the 40 samples. Exceptions included discrepancies between the HUD-50058 and the uploaded recertification and lack of support provided. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with PIC reporting requirements. Effect: The Authority is not in compliance with federal regulations regarding the required submission of all recertifications to the PIC system. Repeat Finding: The finding is a repeat of finding 2022-012 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022– 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) 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))). The Authority must ensure that housing assisted under the demonstration meets housing quality standards established or approved by HUD (Section 204(c)(3)(E) of Pub. L. No. 104-134 (42 USC 1437f (note))). Condition/Context: A sample of 80 tenant files tested for eligibility over MTW-LRPH (40) and MTW HCV (40) found exceptions in 25 of the 40 MTW-LRPH files tested and 23 of the 40 MTW-HCV files tested. The following MTW-LRPH exceptions were noted: • For 1 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 7 of 40 files tested, support was provided, however, CLA did not observe a HUD-50058 with an effective date prior to, and effective for, the rent payment pulled from rent roll. • For 6 of the 40 files tested, we were unable to recalculate annual family income listed in the tenant file to the backup support provided. We either did not observe backing support to recalculate the annual income listed on the tested HUD-50058 or we did not receive the EIV report. • For 12 of 40 files tested, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 5 of 40 tenant files tested, we did not observe a recertification checklist, or the signed Application for Applied Occupancy completed by the specialist. The following MTW-HCV exceptions were noted: • For 3 of 40 files tested, supporting documentation was not provided. • For 12 of the 40 files tested, we were unable to recalculate annual family income listed in the tenant file to the backup support provided. We either did not observe backing support to recalculate the annual income listed on the tested HUD-50058 or we did not receive the EIV report. • For 10 of the 40 files tested we were unable to determine that recertifications were completed on a biennial basis. • For 2 of the 40 files tested, we were not provided with the quality control checklist signed by a housing assistant specialist. • For 3 of the 40 files tested, the HAP per the HUD-50058 did not agree to the HAP register. Questioned Costs: Unable to determine. 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 may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2021-002 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition/Context: Exceptions noted in 35 out of 40 non-MTW HCV files tested: • For 1 of 40 files tested, we were not provided with any supporting documentation to verify eligibility. • For 30 of 40 samples, we were unable to recalculate the income total listed on the HUD-50058 based on the income support provided. • For 8 of 40 samples, we did not observe documentation showing that the head of household was the parent or legal guardian to a dependent for which an allowance was granted or we did not receive documentation for medical expenses. • For 7 of 40 samples, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis. • For 7 of 40 samples, we did not observe the "Authorization for Release of Information/Privacy Act Notice form (HUD-9886) singed by the tenant and all members in the household over the age of 18 for the recertification date listed. • For 9 of 40 samples, we did not observe the general release form signed by the tenant and all members in the household over the age of 18, allowing the Authority to obtain information from third parties. • For 10 of 40 samples, we did not observe a recertification checklist, or a substitute application, showing a specialist's signature. Questioned Costs: Unable to determine. 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 may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2021-003 in the prior audit period. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404). Condition/Context: Exceptions noted in 35 of 40 files tested: • For 20 of 40 files tested, the file did not include the results letter to document the failed inspection and the required correction period for any deficiencies. • For 24 of 40 files tested, the file did not include a copy of the completed letter from DCHA specialists notifying the landlord and tenant in writing of the inspection. • For 23 of 40 files tested, the file did not contain a pass inspection report documenting repairs were completed. • For 30 of 40 files tested, the file did not contain documentation that the unit was properly placed under abatement and/or HAP was not paid under the abatement period. • For 25 of 40 files tested, the file did not contain documentation showing whether the tenant failed to correct deficiencies and that the PHA took proper steps to enforce the family obligations. Questioned Costs: Unable to determine. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: The finding is a repeat of finding 2021-004 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS). The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition/Context: Exceptions noted in 35 of 40 units: • For 8 of the 40 samples, we did not receive any of the documentation requested. • For 1 of the 40 samples, we were unable to view biennial inspections being performed. • For 1 of the 40 samples, we were unable to view that HQS inspections were completed in accordance with the HCVP Admin plan. • For 27 of the 40 samples, we did not receive the completed letter from the DCHA specialists notifying the landlord and tenant in writing of the inspection. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: The Authority is not in compliance with federal regulations regarding HQS inspections. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 006 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) 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. Except as provided in 24 CFR section 982.203 Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition/Context: Exceptions noted in 25 of the 25 samples: • For 25 of the 25 files tested, we were not provided with the selection notice or letter notifying the tenant that they were selected and DCHA will determine eligibility for the program. • For 23 of 25 files tested, we were not provided with a copy of the signed voucher. • For 3 of the 25 files tested, the application or registration form was missing a housing specialist signature. • For 1 of the 25 files tested, we were not provided documentation of the applicant being admitted under a special program. • For 1 of the 25 files tested, we were not provided with supporting documentation for the preference indicated. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with new tenant selection requirements Effect: The Authority is not in compliance with federal regulations regarding the required new tenant selection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained for new tenants. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 007 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition/Context: Exceptions noted in 19 of the 25 samples: • For 19 of the 25 files tested, we were not provided with the neighborhood standards report with the printed date, therefore we were unable to determine that DCHA determined the rent was reasonable prior to move-in in accordance with the administrative plan. • For 4 of the 20 samples, we were not provided with the HAP contract that was signed by a housing specialist/representative. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reasonable rent requirements. Effect: The Authority is not in compliance with federal regulations regarding the required reasonable rent requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the rent to owner is reasonable in accordance with their administrative plan. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 008 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition/Context: Exceptions noted in 18 of the 40 files tested: • For 2 of the 40 files tested, we were not provided with any of the documentation requested. • For 12 of the 40 files tested, we were not provided with the HAP Contract. • For 12 of the 40 files tested, we were not provided with the signed checklist. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with HAP contract and register requirements. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that files are maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 009 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: PHA's must submit timely GAAP-based unaudited and audited financial information electronically to HUD (see Section 13, Moving to Work (MTW) Agencies Reporting to FASS-PH, of Notice PIH-2012-21 (HA), issued May 10, 2012). Condition/Context: Exception noted for the timeliness of the submission. Questioned Costs: Unable to determine. Cause: The Authority did not submit their financial report to HUD in a timely manner. Effect: The Authority is not in compliance with financial reporting requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that financial reporting is completed and submitted timely. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 010 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: Costs charged to the grant must be allowable in accordance with the criteria contained in 2 CFR Part 200, as applicable. Condition/Context: Exceptions noted in 1 of 40 allowable costs transactions: • For 1 payroll transaction selected, the Authority was unable to substantiate the rate of pay charged to the grant. Questioned Costs: $9,326 known; $1,636,013 projected. Cause: The Authority did not sufficiently monitor controls to ensure compliance with allowable activity requirements. Effect: The Authority is not in compliance with federal regulations related to allowable costs. Repeat Finding: No. Recommendation: We recommend management review the record-keeping practices to ensure that personnel documentation related to employee payrates can be easily accessed. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 011 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 13 of the 40 samples. Exceptions included discrepancies between the HUD-50058 and the uploaded recertification and lack of support provided. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 012 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit the HUD-50058 Family Report form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 14 of the 40 samples. We were not provided with support showing that a PIC submission was made for the recertification selected for testing. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with PIC reporting requirements. Effect: The Authority is not in compliance with federal regulations regarding the required submission of all recertifications to the PIC system. Repeat Finding: The finding is a repeat of finding 2021-006 in the prior audit period. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 – 013 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2022 Award Period: October 1, 2021 – September 30, 2022 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition/Context: DCHA did not review utility rate data for each utility category during the fiscal year. Questioned Costs: Unable to determine. Cause: The Authority did not maintain an update utility allowance schedule. Effect: The Authority is not in compliance with federal regulations regarding the requirement of maintaining an updated utility allowance schedule. Repeat Finding: No Recommendation: We recommend the Authority implements controls to ensure that the utility rate data for each utility category is reviewed each year to ensure that an up-to-date utility allowance schedule is maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2021 Award Period: October 1, 2020 – September 30, 2021 Type of Finding:  Material Weakness in Internal Control over Compliance  Material Noncompliance (Modified Opinion) 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))). The Authority must ensure that housing assisted under the demonstration meets housing quality standards established or approved by HUD (Section 204(c)(3)(E) of Pub. L. No. 104- 134 (42 USC 1437f (note))). Condition/Context: A sample of 80 tenant files tested for eligibility over MTW-HCV (40) and MTW-LRPH (40) found exceptions in 20 of the 40 MTW-LRPH files tested and 5 of the 40 MTW-HCV files tested. The following MTW-LRPH exceptions were noted:  For 5 of 40 files tested, we were unable to observe any of the request backup (recertificaiton printout, income support, checklists, etc.)  For 5 of 40 files tested, support was provided, however, CLA did not observe a 50058 with an effective date prior to, and effective for, the rent payment pulled from rent roll.  For 2 of the 40 files tested, CLA was unable to recalculate annual family income listed in the tenant file to the backup support provided. We did not observe backing support to recalculate the annual income listed on the tested 50058.  For 1 of 40 files tested, CLA did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis.  For 10 of 40 tenant files tested, we did not observe a recertification checklist or the signed Application for Applied Occupancy completed by the specialist. The following MTW-HCV exceptions were noted:  For 4 of 40 MTW-HCVP samples, we were unable to recalculate the income total listed on the HUD-50058 based on the backing support provided.  For 4 of 40 MTW-HCVP samples, we did not observe a recertification checklist, or a substitute application, showing a specialist's signature (documenting performance of a key internal control) The sample was statistically valid. Questioned Costs: Unable to determine. 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 may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: The finding is a repeat of finding 2020-001 in the prior audit period. The prior year's finding was a significant deficiency in internal control over compliance. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2021 Award Period: October 1, 2020 – September 30, 2021 Type of Finding:  Material Weakness in Internal Control over Compliance  Material Noncompliance (Modified Opinion) Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition/Context: Exceptions noted in 4 out of 40 NON-MTW HCVP files tested:  For 3 of 40, we were unable to recalculate the income total listed on the HUD-50058 based on the backing support provided.  For 1 of 40 samples, we did not observe documentation showing the head of household was the parent or legal guardian to a dependent for which an allowance was granted.  For 1 of 40 samples, we did not observe a recertification checklist, or a substitute application, showing a specialist's signature (documenting performance of a key internal control). The sample was statistically valid. Questioned Costs: Unable to determine. 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 may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: No. Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2021 Award Period: October 1, 2020 – September 30, 2021 Type of Finding:  Material Weakness in Internal Control over Compliance  Material Noncompliance (Modified Opinion) Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified Authority approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition/Context: Exceptions noted in 3 of 15 failed inspections. Reinspections were not performed within the required timeframe. This resulted in the Authority failing to properly abate the unit. The sample was statistically valid. Questioned Costs: Unable to determine. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001VO - 2021 Award Period: October 1, 2020 – September 30, 2021 Type of Finding:  Material Weakness in Internal Control over Compliance  Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit the HUD-50058 Family Report form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions were noted in 6 of 40 recertifications: Exceptions were noted in 3 of the 20 MTW-LRPH samples. HUD-50058’s were created, modified and approved; however, they were never submitted into PIC, as the files were excluded by the specialist. Exceptions were noted in 3 of the 20 MTW-HCV samples. The recertifications were not uploaded to PIC. The sample was statistically valid. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: The Authority is not in compliance with federal regulations regarding the required submission of all recertifications to the PIC system. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: DC001VO - 2021 Award Period: October 1, 2020 – September 30, 2021 Type of Finding:  Material Weakness in Internal Control over Compliance  Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA is required to submit the HUD-50058 Family Report form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition/Context: Exceptions noted in 9 of the 40 samples. The recertifications were not uploaded to PIC. The sample was statistically valid. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements Effect: The Authority is not in compliance with federal regulations regarding the required submission of all recertifications to the PIC system. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that recertifications are uploaded to PIC in accordance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2020 ? 001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Moving to Work Demonstration CFDA Number: 14.881 Award Period: October 1, 2019 through September 30, 2020 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: 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))). The Authority must ensure that housing assisted under the demonstration meets housing quality standards established or approved by HUD (Section 204(c)(3)(E) of Pub. L. No. 104-134 (42 USC 1437f (note))). Condition/Context: A sample of 80 tenant files tested for eligibility over MTW-HCV (40) and MTW LRPH (40) found exceptions in 2 of the 40 MTW-LRPH files tested. The following exceptions were noted: ? One of 40 MTW-LRPH files did not have documentation to support income that was included in the recertification tested. ? One of 40 MTW-LRPH files selected failed to document the completion of a timely UPCS inspection. The sample was statistically valid. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility and inspection requirements. Effect: The Authority is not in compliance with requirements set forth by HUD and Uniform Guidance. Tenant rent was calculated utilizing unsupported income. Units may not meet housing quality standards established by HUD. Repeat Finding: The finding is a repeat of finding 2019-001 in the prior audit period. The prior year's finding was a material weakness in internal control over compliance; as such, the finding was partially corrected. Recommendation: We recommend that DCHA staff review the controls in place to ensure that income is properly calculated based on the information maintained within the tenant file and required timely inspections are performed. Views of Responsible Officials: There is no disagreement with the audit finding.

Criteria: 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))). The Authority must ensure that housing assisted under the demonstration meets housing quality standards established or approved by HUD (Section 204(c)(3)(E) of Pub. L. No. 104-134 (42 USC 1437f (note))). Condition/Context: A sample of 80 tenant files tested for eligibility over MTW-HCV (40) and MTW-LRPH (40) found exceptions in 9 of the 40 MTW-HCV files and 12 of the 40 MTW-LRPH files tested. The following exceptions were noted: ? One of 40 MTW-HCV files selected did not have proper income support included in the recertification. ? One of 40 MTW-HCV files was not recertified timely. ? Five of 40 MTW-HCV files selected failed to document the completion of a timely HQS inspection. ? Two of 40 MTW-HCV files did not include a quality control checklist (internal control over compliance). ? One of 40 MTW-LRPH files had incorrectly calculated annual income that was utilized in the recertifcation. ? One of 40 MTW-LRPH files was not recertified timely. ? Ten of 40 MTW-LRPH files selected failed to document the completion of a timely UPCS inspection. The sample was statistically valid. Questioned Costs: Unable to determine. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility and inspection requirements. Effect: The Authority is not in compliance with requirements set forth by HUD. Tenant rent and related HAP was miscalculated. Recertifications were not performed timely. Units may not meet housing quality standards established by HUD. Repeat Finding: Yes, finding 2018-001 Recommendation: We recommend that DCHA staff review the controls in place to ensure that income is properly calculated based on the information maintained within the tenant file, recertifications are performed timely, and required timely inspections are performed. Views of Responsible Officials: There is no disagreement with the audit finding.

Criteria: For the Mod Rehab SRO program, eligible individuals must be homeless upon entry into the program. (24 CFR sections 880.603, 881.601, 882.514, 882.808, 833.701, 884.214, 886.119, and 886.318) Condition/Context: A sample of 40 tenant files tested for eligibility found exceptions in 2 of the 40 files. The files did not include documentation that the tenant was homeless upon entry into the program. The sample was statistically valid. Questioned Costs: Unable to determine. Cause: The Authority did not maintain permanent file documentation within the tenant's file to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with eligibility requirements set forth by HUD. Repeat Finding: No Recommendation: We recommend that DCHA staff review their policies and procedures for maintaining permanent file documentation within the tenant?s file. Views of Responsible Officials: There is no disagreement with the audit finding.

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