City of Vacaville

Reference Number 2024-001 – Delays in Financial Reporting Material Weakness and Noncompliance Assistance Listing Number: All Federal Programs reported on the SEFACriteria: Refer to Finding 2024-001 in Section II above. Condition: Refer to Finding 2024-001 in Section II above. Cause: Refer to Finding 2024-001 in Section II above. Effect: Refer to Finding 2024-001 in Section II above.Criteria: Refer to Finding 2024-001 in Section II above. Condition: Refer to Finding 2024-001 in Section II above. Cause: Refer to Finding 2024-001 in Section II above. Effect: Refer to Finding 2024-001 in Section II above.Criteria: Refer to Finding 2024-001 in Section II above. Condition: Refer to Finding 2024-001 in Section II above. Cause: Refer to Finding 2024-001 in Section II above. Effect: Refer to Finding 2024-001 in Section II above.Questioned Costs: None Context: Refer to Finding 2024-001 in Section II above. Repeat Finding: Yes Recommendation: Refer to Finding 2024-001 in Section II above. Management Response: Refer to Finding 2024-001 in Section II above.

Reference Number 2023-001 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Summary of Finding The City did not submit its financial statements and single audit reports to the FAC within the required timeframe for the fiscal year ended June 30, 2023. The financial statements and single audit reports were submitted after the deadline of March 31, 2024. See additional detail within Section II - Financial Statement Findings.

Reference Number 2023-003 – Noncompliance with Special Tests and Provisions Evaluation of Finding Material Weakness and Noncompliance Federal Award Information Assistance Listing Number: 14.871/14.879 Program Title: Section 8 Housing Choice Vouchers/Mainstream Voucher Program Federal Award Number: CA131VO; CA131DV; CA125VO; CA125DV; CA125EHV Federal Award Year: 2022, 2023 Name of Federal Agency: U.S. Department of Housing and Urban Development Criteria Per the 24 CFR sections 982.158(d) and 982.404 tenants that fail the Housing Quality Standards Inspection must correct non-life-threatening deficiencies withing 30 days or within an approved extension timeframe. If the family does not correct the cited HQS deficiencies within the specified correction period, the City must take prompt and vigorous action to enforce the family obligations (stop HAP payments or terminate the HAP contract). Condition Six of the 25 tenants tested did not correct the deficiencies identified from inspection within 30 days or within an approved extension timeframe. Additionally, the City did not abate HAP payments or terminate the HAP contract when repairs were not made within the required timeframe. Cause of Condition The tenants did not correct the deficiencies within the specified time frame and the City was unable to provide supporting documentation of granted extensions, abatement of HAP payments or termination of HAP contracts. Effect or Potential Effect of Condition The City is not compliant with the grant requirements surrounding identified inspection deficiencies, which can lead to potential questioned costs within the program, and a return of grant funds to the awarding agency. Questioned Costs No questioned costs identified. CITY OF VACAVILLE SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30, 2023 Context The City’s process is to receive confirmation from tenants when deficiencies are corrected, however, in these instances there was no documentation supporting the corrections made. Repeat Finding No. Recommendation We recommend that the City implement procedures to retain documentation of correspondence with the tenant or property management, supporting corrections to deficiencies and action taken by the City when deficiencies are not corrected within in the required timeframe. Views of responsible officials We are in agreement with the finding. During internal quality control reviews of Housing Quality Standards (HQS) files around June 2023, it was noted that documentation extensions for repairs were lacking. This deficiency can be attributed to two main factors: firstly, the Housing Authority reinstated physical inspections following a COVID-19-related waiver that allowed inspections to be postponed in 2021 and 2022; secondly, due to the introduction of new staff handling HQS inspections during this period, there was a gap in understanding internal tracking processes necessary for documenting inspection follow-ups on a large scale. Staff underwent retraining on these procedures in August 2023 during a staff meeting. Management continues to conduct ongoing internal quality control reviews to ensure compliance with HQS regulations at the Housing Authority.