Jefferson County Housing AuthorityLocal Government

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.

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