Jacksonville Housing Authority

Finding 2024-001 - Housing Assistance Program Discrepancies (repeated from 12/31/2023, 12/31/2022, and 12/31/2021) Subject: Section 8 Housing Choice Voucher Program – Tenant Eligibility and Reexaminations Federal Agency: Department of Housing and Urban Development Federal Program: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Number and Year (or Other Identifying Number): CY 2024 Pass-Through Entity: Not applicable Compliance Requirement: Eligibility Audit Finding: Significant Deficiency Condition and Context: During audit fieldwork, 10 tenant files were reviewed for compliance with Program eligibility and reexamination requirements. It was noted that the Authority does not perform a second party review on annual rent certifications resulting in miscalculated of tenant rent and housing assistance payments for 3 program participants. Rent miscalculations were due to miscalculations of wages or income, incorrect utility allowances, and incorrect income deductions. Criteria: 24 CFR section 982.516 states in part “Except as provided in paragraph (a)(3) of this section, the PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income.” Cause: Failure to execute internal controls over the federal Eligibility compliance requirement. Effect: Non-compliance with the federal Eligibility requirement. Tenant rents may be miscalculated leading to incorrect housing assistance payments. Other notifications and documentations may be missing for program eligibility. Questioned Cost: Known and projected misstatement: $10,061 Recommendation: We recommend the Authority implement and execute strengthened controls over the federal Eligibility compliance requirement to include the performance of annual reexaminations and documentation maintenance; the above discrepancies need to be addressed, and all tenant files should be reviewed for compliance.

Subject: Section 8 Housing Choice Voucher Program Federal Agency: Department of Housing and Urban Development Federal Program: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Number and Year (or Other Identifying Number): CY 2024 Pass-Through Entity: Not applicable Compliance Requirement: Allowable Costs Audit Finding: Significant Deficiency Condition and Context: During the review of disbursements, it was noted the Housing Authority does not consistently document approval of disbursements prior to payment. Our sample of cash disbursements revealed that checks and electronic payments were processed without evidence of review or authorization by management. Criteria: Per 2 CFR §200.302(b)(3), non-Federal entities must maintain effective internal control over Federal awards that provides reasonable assurance that charges to Federal programs are allowable, allocable, and in compliance with laws, regulations, and the provisions of contracts or grant agreements. Additionally, sound internal control practices require that disbursements be reviewed and approved to ensure they are valid, properly supported, and in compliance with program requirements. Cause: The Authority has not implemented procedures requiring documented review and approval of disbursements before payment is made. Effect: Without documented approval of disbursements, there is an increased risk of unauthorized, unsupported, or unallowable expenditures. Questioned Cost: Known and projected misstatement: None Recommendation: The Housing Authority should implement policies and procedures that require all disbursements to be approved by the Board prior to checks being issued.

CFDA 14.871 Section 8 Housing Choice Vouchers Finding 2023-001 Housing Assistance Program Discrepancies (repeated from 12/31/2022 and 12/31/2021) Criteria- Several PIH notices and CFR's address compliance requirements within the Housing Choice Voucher Program; many discrepancies were noted during the review of tenant files. Condition- 8 tenant files were reviewed and the following discrepancies were noted: -4 of the 8 files did not have a 9886 form; Authorization for the Release of Information -3 of the 8 files did not have a Declaration of Section 214 status -2 of the 8 files did not have a lease -4 of the 8 files did not include rent reasonableness -5 of the 8 files did not include verification of assets -4 of the 8 files calculated income and wages incorrectly or lacked supporting documentation -some files had missing required forms like rent choice and Request for Tenancy Approval - 3 of the 8 files had incorrect Total Tenant Payment Questioned Cost- None Context- 24 CFR 982.451 addresses Signed HAP Contracts; 24 CFR 982.517 addresses utility allowances; other PIH notices, HUD handbooks, and CFR's address all other required forms. Effect- Tenant rents may be miscalculated, other notifications and documentations may be missing. Cause- Unknown Recommendation- The Housing Authority should implement a policy to ensure compliance with HUD regulations concerning the Administrative Plan for the Housing Assistance Program; the above discrepancies need to be addressed, and all tenant files should be reviewed for compliance. Additionally, all staff members should attend training to understand the compliance requirements of tenant files.