Audit 375097

24 CFR § 990.170 states the utility expense level (UEL) for each PHA is based on its consumption for each utility, the applicable rates for each utility, and an applicable inflation factor. The UEL for a given funding period is the product of the utility rate multiplied by the payable consumption level multiplied by the inflation factor. The UEL is expressed in terms of PUM costs. The Authority did not have the proper internal controls in place over reporting their UEL. During our testing of utility expense level calculations, we noted that six out of sixteen (38%) of utility records tested did not have the correct consumption recorded in the utility ledger as noted on the invoice. In addition, we noted inconsistencies between the 4 AMPs relating to the consumption amounts reported on the Form 52722. Failure to properly record the consumption amount can lead to HUD not receiving accurate information for funding. The Authority should implement procedures over the utility log to ensure that the proper consumption amount is being logged and reported to HUD on the Form 52722.