Finding Text
Finding 2024-005: Utility Allowances
Housing Choice Voucher, 14.871
Material Weakness/Noncompliance – Special Tests and Provisions
Repeat Finding 2023-005
Criteria: The Authority must maintain an up-to-date utility allowance schedule. The Authority must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517).
Condition: The Authority had not updated utility rates since the April 1, 2021 effective date schedules.
Cause: It was a finding in the prior year that the Authority did not update the utility allowances. The Authority contacted a company to perform the analysis but the Authority felt it was too expensive and then failed to calculate the rates itself.
Effect or Potential Effect: The Authority did not comply with the requirements of 24 CFR §982.405.
Recommendation: The Authority should review the requirements of 24 CFR §982.405 and establish a system of where the utility allowance is reviewed and documented during each fiscal year.
View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.