Finding 569824 (2024-002)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-06-30

AI Summary

  • Core Issue: 42 tenant files showed significant documentation deficiencies, impacting compliance with HUD requirements.
  • Impacted Requirements: Missing documents include income verification, annual recertification declarations, EIV reports, flat rent options, and release of information forms.
  • Recommended Follow-Up: Revise procedures, enhance staff training, and address noted deficiencies to ensure compliance and accurate rental assistance calculations.

Finding Text

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

Corrective Action Plan

Berman Hopkins Wright & LaHam, CPAs and Associates, LLP recently identified in the FY2024 JHA Audit (Period: October 1, 2023 – September 30, 2024) material weakness findings and noncompliance findings for the JHA Public Housing Program. Please note that the JHA’s Public Housing Program was not tested by the auditors in previous years. Note: JHA will have a finding in FY2025 due to existing months of the public housing program operations that have already commenced for the periods: October 1, 2024 – June 27, 2025. The audit period will end for FY2025 September 30, 2025. JHA will quickly evaluate each PH employee, train, hire skilled employees and streamline organizational inefficiencies, while implementing new internal process controls to address the findings identified in the FY2024 audit report for the Public Housing program. An evaluation of the current employee role structure and staff qualifications will commence July 2025. The entire public housing department will be assessed to ensure that JHA is efficient, productive, utilizes the technology system of record Yardi V7 to adhere to compliance, and works in a collaborative matter to better serve all existing a potential future client of the agency. The Public Housing organizational re-org will be implemented no later than September 1, 2025. Responsible: Jacksonville Housing Authority JHA POC: William Mitchell (a.k.a.Daniel/Danny), Deputy Chief EMAIL: dmitchell@jaxha.org JHA POC: Roslyn Phillips, Interim COO EMAIL: RPHILLIPS@JAXHA.ORG

Categories

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $92.09M
14.850 Public and Indian Housing $11.59M
14.872 Public Housing Capital Fund $5.90M
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $2.92M
14.871 Section 8 Housing Vouchers $1.94M
14.879 Mainstream Vouchers $1.05M
14.895 Jobs-Plus Pilot Initiative $839,921
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $683,915
14.896 Family Self-Sufficiency Program $369,946
14.870 Resident Opportunity and Supportive Services- Service Coordinators $153,665
14.218 Community Development Block Grants/entitlement Grants $70,000