Finding 544345 (2024-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 350961
Organization: Jellico Housing Authority (TN)

AI Summary

  • Core Issue: Missing annual re-examinations and tenant signatures on required documents for public housing eligibility.
  • Impacted Requirements: Compliance with HUD regulations for tenant income verification and documentation.
  • Recommended Follow-up: Ensure all annual re-examinations are completed and signed by tenants to maintain eligibility and avoid eviction.

Finding Text

Department of Housing and Urban Development 2024-001 Eligibility Federal Program: Public and Indian Housing, Federal Assistance Listing Number 14.850 Condition and Criteria: The Authority’s purpose for existence is to provide decent, safe, and affordable housing for low-income families. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of rent to be paid by the family. HUD regulations prescribe the content of these family files. These requirements consist of the following: a. As a condition of admission or continued occupancy, the tenant and other family members are required to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, 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. c. Determine income eligibility and calculate the tenant’s rent payment in accordance with HUD regulations. d. Select tenants from the public housing waiting list in accordance with the PHA’s tenant selection policies. e. Re-examine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary. Population and Items Tested: We selected thirteen public housing tenant files for testing. One file did not contain an annual re-examination. The tenant did not provide the information required to complete the re-examination and was ultimately evicted. One file did not contain tenant signatures on the annual re-examination documents including the required authorizations for the release of information. Auditor’s Recommendation: All re-examinations should be completed on an annual basis and the required documents should be signed by the tenant. Views of responsible officials and planned corrective actions: We will comply with the auditor’s recommendation.

Corrective Action Plan

Jellico Housing Authority respectfully submits the following corrective action plan for the year ended June 30, 2024. Responsible Official: Crystal Creekmore, Executive Director Name and address of independent public accounting firm: Miller & Rose, PA 1309 East Race Searcy, AR 72143 Audit period: Year ended June 30, 2024 Oversight Agency: U.S. Department of Housing and Urban Development The findings from the June 30, 2024, audit are discussed below. The findings are numbered to correspond to the auditing findings disclosed in the Schedule of Findings and Questioned Costs. Significant Deficiency 2024-001 Eligibility Federal Program: Public and Indian Housing, Federal Assistance Listing Number 14.850 Condition and Criteria: The Authority’s purpose for existence is to provide decent, safe, and affordable housing for low-income families. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of rent to be paid by the family. HUD regulations prescribe the content of these family files. These requirements consist of the following: a. As a condition of admission or continued occupancy, the tenant and other family members are required to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, 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. c. Determine income eligibility and calculate the tenant’s rent payment in accordance with HUD regulations. d. Select tenants from the public housing waiting list in accordance with the PHA’s tenant selection policies. e. Re-examine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary. Population and Items Tested: We selected thirteen public housing tenant files for testing. One file did not contain an annual re-examination. The tenant did not provide the information required to complete the re-examination and was ultimately evicted. One file did not contain tenant signatures on the annual re-examination documents including the required authorizations for the release of information. Auditor’s Recommendation: All re-examinations should be completed on an annual basis and the required documents should be signed by the tenant. Planned corrective actions: We will comply with the auditor’s recommendation. Estimated Date of Completion: June 30, 2024

Categories

HUD Housing Programs Eligibility

Other Findings in this Audit

  • 1120787 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $553,108
14.872 Public Housing Capital Fund $289,140