FAC Explorer

Audit 13164

FY End
2022-12-31
Total Expended
$25.20M
Findings
2
Programs
7
Organization: Jefferson County Housing Authority (AL)
Year: 2022 Accepted: 2024-01-23
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
9518 2022-002 Significant Deficiency - E
585960 2022-002 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $17.70M Yes 0
14.850 Public and Indian Housing $3.03M Yes 1
14.267 Continuum of Care Program $2.84M Yes 0
14.872 Public Housing Capital Fund $640,314 - 0
14.879 Mainstream Vouchers $281,925 Yes 0
14.871 Emergency Housing Vouchers $200,685 Yes 0
14.896 Family Self-Sufficiency Program $140,000 - 0

Contacts

Name Title Type
MSTQBQFG8516 Hannah Gore Auditee
2052441348 Gaby Miller Auditor
No contacts on file

Notes to SEFA

Title: HOUSING VOUCHER CLUSTER Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Jefferson County Housing Authority (the Authority) under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Authority received $17,701,814 in federal funding for the Section 8 Housing Choice Voucher Program (Assistance Listing Number 14.871), $200,685 in Emergency Choice Vouchers funding (Assistance Listing Number 14.871), and $281,925 in Mainstream (Assistance Listing Number 14.879) funding, during the year. The Authority reported $17,789,890, $398,874, and $268,439 in expenditures on a full accrual basis for Section 8 Housing Choice Voucher Program, Emergency Housing Voucher Program, and Mainstream, respectively during the year, which were paid with federal and nonfederal funds. The Authority did not report any incoming HAP portability expenses during the fiscal year.
Title: PUBLIC AND INDIAN HOUSING & CAPITAL FUND PROGRAM Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Jefferson County Housing Authority (the Authority) under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Authority received $3,027,142 in federal funding for the Public and Indian Housing Program (Assistance Listing Number 14.850) and 1,012,503 for the Capital Fund Program (Assistance Listing Number 14.872) during the year. The Authority reported $4,718,997 in expenditures for the Public and Indian Housing Program funding on a full accrual basis during the year. Expenses were paid for by current year HUD funding, tenant rent, other sources of Public Housing revenue, and prior year reserves.
Title: CONTINUUM OF CARE Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Jefferson County Housing Authority (the Authority) under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Authority received $2,840,871 in federal funding for the Continuum of Care program (Assistance Listing Number 14.267), during the year. The Authority reported $2,840,871 in expenditures on a full accrual basis for the Continuum of Care Program during the year. Expenses were paid for by current year HUD funding and other sources of revenue.

Finding Details

Finding 2022-002
Federal agency: Housing and Urban Development Federal program title: Public Housing Program Assistance Listing Number: 14.850 Federal Award Identification Number and Year: AL086, 2022 Award Period: 1/1/2022-12/31/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of household signs (a) a certification that the information provided to the PHA is correct; (b) one or more release forms to allow the PHA to get information from third parties; (c) a federally prescribed general release form for employment information; and (d) a privacy notice. Under some circumstances, other members of the family may be required to sign these forms (24 CFR sections 5.212, 5.230, and 5.601 through 5.615). The PHA must do the following: (1) As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 960.259). (2) For both family income examinations and reexaminations, obtain and document in the family file third party verification of (a) reported family annual income, (b) the value of assets, (c) expenses related to deductions from annual income, and (d) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 960.259). (3) Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5, Subpart F (24 CFR sections 5.601 et seq., and 24 CFR sections 960.253, 960.255, and 960.259). (4) Select tenants from the public housing waiting list (see III.N.2, “Special Tests and Provisions – Public Housing Waiting List”) (24 CFR sections 960.206 and 960.208). (5) Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR sections 960.253, 960.257, and 960.259). Condition: During the testing of 40 Public Housing tenant files, a compliance deficiency was noted. Of the tenant files provided, we noted that 2 of the HUD-9886 forms were not signed and/or were missing signatures from household members over the age of 18. Questioned Costs: None Context: Of the 40 tenant files tested, two tenant files contained exceptions from the prescribed controls resulting in noncompliance. Effect: The Authority is not in compliance with federal regulations regarding signed “Authorization for Release of Information/Privacy Act Notice” form HUD-9886 for the recertification tested. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) Cause: The Authority failed to ensure that the files contained current and updated HUD-9886 forms that included signatures for all members in the household above the age of 18. Repeat Finding: No Recommendation: The Authority should designate one person to review a sample of the files that have been recertified each month, to ensure that all the tenant files contain the necessary updated HUD forms. Views of responsible officials: There is no disagreement.
Finding 2022-002
Federal agency: Housing and Urban Development Federal program title: Public Housing Program Assistance Listing Number: 14.850 Federal Award Identification Number and Year: AL086, 2022 Award Period: 1/1/2022-12/31/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of household signs (a) a certification that the information provided to the PHA is correct; (b) one or more release forms to allow the PHA to get information from third parties; (c) a federally prescribed general release form for employment information; and (d) a privacy notice. Under some circumstances, other members of the family may be required to sign these forms (24 CFR sections 5.212, 5.230, and 5.601 through 5.615). The PHA must do the following: (1) As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 960.259). (2) For both family income examinations and reexaminations, obtain and document in the family file third party verification of (a) reported family annual income, (b) the value of assets, (c) expenses related to deductions from annual income, and (d) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 960.259). (3) Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5, Subpart F (24 CFR sections 5.601 et seq., and 24 CFR sections 960.253, 960.255, and 960.259). (4) Select tenants from the public housing waiting list (see III.N.2, “Special Tests and Provisions – Public Housing Waiting List”) (24 CFR sections 960.206 and 960.208). (5) Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR sections 960.253, 960.257, and 960.259). Condition: During the testing of 40 Public Housing tenant files, a compliance deficiency was noted. Of the tenant files provided, we noted that 2 of the HUD-9886 forms were not signed and/or were missing signatures from household members over the age of 18. Questioned Costs: None Context: Of the 40 tenant files tested, two tenant files contained exceptions from the prescribed controls resulting in noncompliance. Effect: The Authority is not in compliance with federal regulations regarding signed “Authorization for Release of Information/Privacy Act Notice” form HUD-9886 for the recertification tested. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) Cause: The Authority failed to ensure that the files contained current and updated HUD-9886 forms that included signatures for all members in the household above the age of 18. Repeat Finding: No Recommendation: The Authority should designate one person to review a sample of the files that have been recertified each month, to ensure that all the tenant files contain the necessary updated HUD forms. Views of responsible officials: There is no disagreement.