Audit 361093

FY End
2024-09-30
Total Expended
$117.61M
Findings
18
Programs
11
Organization: Jacksonville Housing Authority (FL)
Year: 2024 Accepted: 2025-06-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
569824 2024-002 Material Weakness - E
569825 2024-001 Material Weakness Yes E
569826 2024-001 Material Weakness Yes E
569827 2024-001 Material Weakness Yes E
569828 2024-003 Material Weakness - E
569829 2024-003 Material Weakness - E
569830 2024-004 - - N
569831 2024-004 - - N
569832 2024-004 - - N
1146266 2024-002 Material Weakness - E
1146267 2024-001 Material Weakness Yes E
1146268 2024-001 Material Weakness Yes E
1146269 2024-001 Material Weakness Yes E
1146270 2024-003 Material Weakness - E
1146271 2024-003 Material Weakness - E
1146272 2024-004 - - N
1146273 2024-004 - - N
1146274 2024-004 - - N

Contacts

Name Title Type
YSTMHS5MMUG5 Mamie Davis Auditee
9046653035 Laura Anne Pray Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on this 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 did not elect to use the 10-percent de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Jacksonville Housing Authority and is presented on the accrual basis of accounting. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Section 8 Housing Choice Voucher program (“HCV”) to be an expenditure for the purposes of this schedule. Therefore, the amount in this schedule is the total amount received directly from HUD and not the total expenditures paid by the Authority.
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on this 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 did not elect to use the 10-percent de minimis indirect cost rate. Expenditures reported on this 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.
Title: NOTE 3 - INDIRECT COST RATE Accounting Policies: Expenditures reported on this 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 did not elect to use the 10-percent de minimis indirect cost rate. The Authority did not elect to use the 10-percent de minimis indirect cost rate.
Title: NOTE 4 - SUB-RECIPIENTS Accounting Policies: Expenditures reported on this 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 did not elect to use the 10-percent de minimis indirect cost rate. During the year ended September 30, 2024, the Authority had no sub-recipients.
Title: NOTE 5 - NONCASH FEDERAL ASSISTANCE Accounting Policies: Expenditures reported on this 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 did not elect to use the 10-percent de minimis indirect cost rate. The Authority did not receive any noncash Federal assistance for the year ended September 30, 2024.
Title: NOTE 6 - LOAN GUARANTEES Accounting Policies: Expenditures reported on this 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 did not elect to use the 10-percent de minimis indirect cost rate. At September 30, 2024, the Authority is not the guarantor of any loans outstanding.

Finding Details

Condition: Out of an approximate population of 2,070 of tenants, a total of 42 files were selected for testing and the following deficiencies were noted: • Nine files were missing documents to support reported income, • Eight files were missing 214 declaration documents performed for the FYE 2024 annual recertification, • Seven files were missing EIV report for the FYE 2024 annual recertification, • Three files were flat rent option documents for the FYE 2024 annual recertification, and • Three files were missing 9886 release of information documents during the FYE 2024 annual recertification process. Criteria: The Authority’s ACOP and 24 CFR 960.259 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete and accurate tenant files. Context: The auditor randomly selected 42 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should evaluate and change their established procedures and controls in place to ensure full compliance in regards to eligibility of recertifications and should provide staff training on these procedures. The Authority needs to correct the deficiencies noted in the internal quality control sample and consider the impact to the rest of the population of tenant files that were not selected as part of the sample. Management Response: See Corrective Action Plan
Condition: Out of an approximate population of 7,900 of tenants, a total of 41 files were selected for testing and the following deficiencies were noted: • Thirteen files were missing documents to support reported income, • Nine files were missing 9886 release of information documents performed for the FYE 2024 annual recertification, • Two files were missing rent reasonableness documentation, • Two files were missing utility allowance calculation documents, • Two files were missing inspections covering the FYE 2024 annual recertification, and • One file was missing the EIV report for the FYE 2024 annual recertification. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete and accurate tenant files. Context: The auditor randomly selected 41 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should evaluate and change their established procedures and controls in place to ensure full compliance in regards to eligibility of recertifications and should provide staff training on these procedures. The Authority needs to correct the deficiencies noted in the sample and consider the impact to the rest of the population of tenant files that were not selected as part of the sample. Management Response: See Corrective Action Plan.
Condition: Out of an approximate population of 7,900 of tenants, a total of 41 files were selected for testing and the following deficiencies were noted: • Thirteen files were missing documents to support reported income, • Nine files were missing 9886 release of information documents performed for the FYE 2024 annual recertification, • Two files were missing rent reasonableness documentation, • Two files were missing utility allowance calculation documents, • Two files were missing inspections covering the FYE 2024 annual recertification, and • One file was missing the EIV report for the FYE 2024 annual recertification. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete and accurate tenant files. Context: The auditor randomly selected 41 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should evaluate and change their established procedures and controls in place to ensure full compliance in regards to eligibility of recertifications and should provide staff training on these procedures. The Authority needs to correct the deficiencies noted in the sample and consider the impact to the rest of the population of tenant files that were not selected as part of the sample. Management Response: See Corrective Action Plan.
Condition: Out of an approximate population of 7,900 of tenants, a total of 41 files were selected for testing and the following deficiencies were noted: • Thirteen files were missing documents to support reported income, • Nine files were missing 9886 release of information documents performed for the FYE 2024 annual recertification, • Two files were missing rent reasonableness documentation, • Two files were missing utility allowance calculation documents, • Two files were missing inspections covering the FYE 2024 annual recertification, and • One file was missing the EIV report for the FYE 2024 annual recertification. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete and accurate tenant files. Context: The auditor randomly selected 41 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should evaluate and change their established procedures and controls in place to ensure full compliance in regards to eligibility of recertifications and should provide staff training on these procedures. The Authority needs to correct the deficiencies noted in the sample and consider the impact to the rest of the population of tenant files that were not selected as part of the sample. Management Response: See Corrective Action Plan.
Condition: Out of an approximate population of 450 of tenants, a total of 42 files were selected for testing and the following deficiencies were noted: • Nine files were missing the 214 declaration documents performed for the FYE 2024 annual recertification, • Seven files were missing EIV report for the FYE 2024 annual recertification, • Five files were missing supporting documentation for income reported, • Two files were missing 9886 release of information documents during the FYE 2024 annual recertification process, • Two files had incorrect calculation of income allowances, and • One file was missing information to determine custody of minor child. Criteria: 24 CFR 983.353 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Context: The auditor randomly selected 42 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should evaluate and change their established procedures and controls in place to ensure full compliance in regards to eligibility of recertifications and should provide staff training on these procedures. The Authority needs to correct the deficiencies noted in the internal quality control sample and consider the impact to the rest of the population of tenant files that were not selected as part of the sample. Management Response: See Corrective Action Plan.
Condition: Out of an approximate population of 450 of tenants, a total of 42 files were selected for testing and the following deficiencies were noted: • Nine files were missing the 214 declaration documents performed for the FYE 2024 annual recertification, • Seven files were missing EIV report for the FYE 2024 annual recertification, • Five files were missing supporting documentation for income reported, • Two files were missing 9886 release of information documents during the FYE 2024 annual recertification process, • Two files had incorrect calculation of income allowances, and • One file was missing information to determine custody of minor child. Criteria: 24 CFR 983.353 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Context: The auditor randomly selected 42 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should evaluate and change their established procedures and controls in place to ensure full compliance in regards to eligibility of recertifications and should provide staff training on these procedures. The Authority needs to correct the deficiencies noted in the internal quality control sample and consider the impact to the rest of the population of tenant files that were not selected as part of the sample. Management Response: See Corrective Action Plan.
Condition: During our audit of the Authority’s SEMAP submission and discussion with the Authority staff we noted that the Authority did no have proper documentation of Housing Quality inspection failure types as it related to Indicator 6 HQS Enforcement. Criteria: 24 CFR 985.2 and 985.3 outlines sampling and testing methodologies for each indicator to allow the Authority to select the correct sample size from the correct universe and to correctly test and report the sample. Context: We obtained the Authority’s SEMAP submission and available supporting documentation. As a part of the testing process we attempted to review the Authority’s sampling and testing methodology for the SEMAP indicators. The Authority’s documentation did not note what type of failure each inspection was and therefore we were unable to determine that the HQS inspection failures were followed up in the correct time frame. Cause: The Authority experienced reporting and operational changes with some of the inspectors used which created challenges to ensuring properly documentation in regards to SEMAP testing. Effect: The Authority is unable to support the testing conclusion performed for Indicator 6 as part of the annual SEMAP submission. Questioned Costs: Unknown. Auditor Recommendations: The Authority should develop reporting guideline with inspectors and keep documentation to clearly outline the testing performed as a part of the SEMAP submission and readily have necessary supporting documentation. Management Response: See Corrective Action Plan.
Condition: During our audit of the Authority’s SEMAP submission and discussion with the Authority staff we noted that the Authority did no have proper documentation of Housing Quality inspection failure types as it related to Indicator 6 HQS Enforcement. Criteria: 24 CFR 985.2 and 985.3 outlines sampling and testing methodologies for each indicator to allow the Authority to select the correct sample size from the correct universe and to correctly test and report the sample. Context: We obtained the Authority’s SEMAP submission and available supporting documentation. As a part of the testing process we attempted to review the Authority’s sampling and testing methodology for the SEMAP indicators. The Authority’s documentation did not note what type of failure each inspection was and therefore we were unable to determine that the HQS inspection failures were followed up in the correct time frame. Cause: The Authority experienced reporting and operational changes with some of the inspectors used which created challenges to ensuring properly documentation in regards to SEMAP testing. Effect: The Authority is unable to support the testing conclusion performed for Indicator 6 as part of the annual SEMAP submission. Questioned Costs: Unknown. Auditor Recommendations: The Authority should develop reporting guideline with inspectors and keep documentation to clearly outline the testing performed as a part of the SEMAP submission and readily have necessary supporting documentation. Management Response: See Corrective Action Plan.
Condition: During our audit of the Authority’s SEMAP submission and discussion with the Authority staff we noted that the Authority did no have proper documentation of Housing Quality inspection failure types as it related to Indicator 6 HQS Enforcement. Criteria: 24 CFR 985.2 and 985.3 outlines sampling and testing methodologies for each indicator to allow the Authority to select the correct sample size from the correct universe and to correctly test and report the sample. Context: We obtained the Authority’s SEMAP submission and available supporting documentation. As a part of the testing process we attempted to review the Authority’s sampling and testing methodology for the SEMAP indicators. The Authority’s documentation did not note what type of failure each inspection was and therefore we were unable to determine that the HQS inspection failures were followed up in the correct time frame. Cause: The Authority experienced reporting and operational changes with some of the inspectors used which created challenges to ensuring properly documentation in regards to SEMAP testing. Effect: The Authority is unable to support the testing conclusion performed for Indicator 6 as part of the annual SEMAP submission. Questioned Costs: Unknown. Auditor Recommendations: The Authority should develop reporting guideline with inspectors and keep documentation to clearly outline the testing performed as a part of the SEMAP submission and readily have necessary supporting documentation. Management Response: See Corrective Action Plan.
Condition: Out of an approximate population of 2,070 of tenants, a total of 42 files were selected for testing and the following deficiencies were noted: • Nine files were missing documents to support reported income, • Eight files were missing 214 declaration documents performed for the FYE 2024 annual recertification, • Seven files were missing EIV report for the FYE 2024 annual recertification, • Three files were flat rent option documents for the FYE 2024 annual recertification, and • Three files were missing 9886 release of information documents during the FYE 2024 annual recertification process. Criteria: The Authority’s ACOP and 24 CFR 960.259 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete and accurate tenant files. Context: The auditor randomly selected 42 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should evaluate and change their established procedures and controls in place to ensure full compliance in regards to eligibility of recertifications and should provide staff training on these procedures. The Authority needs to correct the deficiencies noted in the internal quality control sample and consider the impact to the rest of the population of tenant files that were not selected as part of the sample. Management Response: See Corrective Action Plan
Condition: Out of an approximate population of 7,900 of tenants, a total of 41 files were selected for testing and the following deficiencies were noted: • Thirteen files were missing documents to support reported income, • Nine files were missing 9886 release of information documents performed for the FYE 2024 annual recertification, • Two files were missing rent reasonableness documentation, • Two files were missing utility allowance calculation documents, • Two files were missing inspections covering the FYE 2024 annual recertification, and • One file was missing the EIV report for the FYE 2024 annual recertification. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete and accurate tenant files. Context: The auditor randomly selected 41 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should evaluate and change their established procedures and controls in place to ensure full compliance in regards to eligibility of recertifications and should provide staff training on these procedures. The Authority needs to correct the deficiencies noted in the sample and consider the impact to the rest of the population of tenant files that were not selected as part of the sample. Management Response: See Corrective Action Plan.
Condition: Out of an approximate population of 7,900 of tenants, a total of 41 files were selected for testing and the following deficiencies were noted: • Thirteen files were missing documents to support reported income, • Nine files were missing 9886 release of information documents performed for the FYE 2024 annual recertification, • Two files were missing rent reasonableness documentation, • Two files were missing utility allowance calculation documents, • Two files were missing inspections covering the FYE 2024 annual recertification, and • One file was missing the EIV report for the FYE 2024 annual recertification. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete and accurate tenant files. Context: The auditor randomly selected 41 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should evaluate and change their established procedures and controls in place to ensure full compliance in regards to eligibility of recertifications and should provide staff training on these procedures. The Authority needs to correct the deficiencies noted in the sample and consider the impact to the rest of the population of tenant files that were not selected as part of the sample. Management Response: See Corrective Action Plan.
Condition: Out of an approximate population of 7,900 of tenants, a total of 41 files were selected for testing and the following deficiencies were noted: • Thirteen files were missing documents to support reported income, • Nine files were missing 9886 release of information documents performed for the FYE 2024 annual recertification, • Two files were missing rent reasonableness documentation, • Two files were missing utility allowance calculation documents, • Two files were missing inspections covering the FYE 2024 annual recertification, and • One file was missing the EIV report for the FYE 2024 annual recertification. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete and accurate tenant files. Context: The auditor randomly selected 41 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should evaluate and change their established procedures and controls in place to ensure full compliance in regards to eligibility of recertifications and should provide staff training on these procedures. The Authority needs to correct the deficiencies noted in the sample and consider the impact to the rest of the population of tenant files that were not selected as part of the sample. Management Response: See Corrective Action Plan.
Condition: Out of an approximate population of 450 of tenants, a total of 42 files were selected for testing and the following deficiencies were noted: • Nine files were missing the 214 declaration documents performed for the FYE 2024 annual recertification, • Seven files were missing EIV report for the FYE 2024 annual recertification, • Five files were missing supporting documentation for income reported, • Two files were missing 9886 release of information documents during the FYE 2024 annual recertification process, • Two files had incorrect calculation of income allowances, and • One file was missing information to determine custody of minor child. Criteria: 24 CFR 983.353 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Context: The auditor randomly selected 42 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should evaluate and change their established procedures and controls in place to ensure full compliance in regards to eligibility of recertifications and should provide staff training on these procedures. The Authority needs to correct the deficiencies noted in the internal quality control sample and consider the impact to the rest of the population of tenant files that were not selected as part of the sample. Management Response: See Corrective Action Plan.
Condition: Out of an approximate population of 450 of tenants, a total of 42 files were selected for testing and the following deficiencies were noted: • Nine files were missing the 214 declaration documents performed for the FYE 2024 annual recertification, • Seven files were missing EIV report for the FYE 2024 annual recertification, • Five files were missing supporting documentation for income reported, • Two files were missing 9886 release of information documents during the FYE 2024 annual recertification process, • Two files had incorrect calculation of income allowances, and • One file was missing information to determine custody of minor child. Criteria: 24 CFR 983.353 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Context: The auditor randomly selected 42 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should evaluate and change their established procedures and controls in place to ensure full compliance in regards to eligibility of recertifications and should provide staff training on these procedures. The Authority needs to correct the deficiencies noted in the internal quality control sample and consider the impact to the rest of the population of tenant files that were not selected as part of the sample. Management Response: See Corrective Action Plan.
Condition: During our audit of the Authority’s SEMAP submission and discussion with the Authority staff we noted that the Authority did no have proper documentation of Housing Quality inspection failure types as it related to Indicator 6 HQS Enforcement. Criteria: 24 CFR 985.2 and 985.3 outlines sampling and testing methodologies for each indicator to allow the Authority to select the correct sample size from the correct universe and to correctly test and report the sample. Context: We obtained the Authority’s SEMAP submission and available supporting documentation. As a part of the testing process we attempted to review the Authority’s sampling and testing methodology for the SEMAP indicators. The Authority’s documentation did not note what type of failure each inspection was and therefore we were unable to determine that the HQS inspection failures were followed up in the correct time frame. Cause: The Authority experienced reporting and operational changes with some of the inspectors used which created challenges to ensuring properly documentation in regards to SEMAP testing. Effect: The Authority is unable to support the testing conclusion performed for Indicator 6 as part of the annual SEMAP submission. Questioned Costs: Unknown. Auditor Recommendations: The Authority should develop reporting guideline with inspectors and keep documentation to clearly outline the testing performed as a part of the SEMAP submission and readily have necessary supporting documentation. Management Response: See Corrective Action Plan.
Condition: During our audit of the Authority’s SEMAP submission and discussion with the Authority staff we noted that the Authority did no have proper documentation of Housing Quality inspection failure types as it related to Indicator 6 HQS Enforcement. Criteria: 24 CFR 985.2 and 985.3 outlines sampling and testing methodologies for each indicator to allow the Authority to select the correct sample size from the correct universe and to correctly test and report the sample. Context: We obtained the Authority’s SEMAP submission and available supporting documentation. As a part of the testing process we attempted to review the Authority’s sampling and testing methodology for the SEMAP indicators. The Authority’s documentation did not note what type of failure each inspection was and therefore we were unable to determine that the HQS inspection failures were followed up in the correct time frame. Cause: The Authority experienced reporting and operational changes with some of the inspectors used which created challenges to ensuring properly documentation in regards to SEMAP testing. Effect: The Authority is unable to support the testing conclusion performed for Indicator 6 as part of the annual SEMAP submission. Questioned Costs: Unknown. Auditor Recommendations: The Authority should develop reporting guideline with inspectors and keep documentation to clearly outline the testing performed as a part of the SEMAP submission and readily have necessary supporting documentation. Management Response: See Corrective Action Plan.
Condition: During our audit of the Authority’s SEMAP submission and discussion with the Authority staff we noted that the Authority did no have proper documentation of Housing Quality inspection failure types as it related to Indicator 6 HQS Enforcement. Criteria: 24 CFR 985.2 and 985.3 outlines sampling and testing methodologies for each indicator to allow the Authority to select the correct sample size from the correct universe and to correctly test and report the sample. Context: We obtained the Authority’s SEMAP submission and available supporting documentation. As a part of the testing process we attempted to review the Authority’s sampling and testing methodology for the SEMAP indicators. The Authority’s documentation did not note what type of failure each inspection was and therefore we were unable to determine that the HQS inspection failures were followed up in the correct time frame. Cause: The Authority experienced reporting and operational changes with some of the inspectors used which created challenges to ensuring properly documentation in regards to SEMAP testing. Effect: The Authority is unable to support the testing conclusion performed for Indicator 6 as part of the annual SEMAP submission. Questioned Costs: Unknown. Auditor Recommendations: The Authority should develop reporting guideline with inspectors and keep documentation to clearly outline the testing performed as a part of the SEMAP submission and readily have necessary supporting documentation. Management Response: See Corrective Action Plan.