Finding 1095728 (2024-002)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-01-15
Audit: 338035
Organization: Morgan County Housing Authority (IL)

AI Summary

  • Core Issue: Incorrect bedroom sizes were used in 12 instances for calculating tenant Payment Standards and Utility Allowances, leading to a 15% fail rate.
  • Impacted Requirements: Compliance with HUD Guidance on using the lower of Unit size and Voucher size for calculations.
  • Recommended Follow-Up: Management should review tenant files to ensure correct utility allowances are applied consistently.

Finding Text

Per HUD Guidance the Payment Standard used for the tenant and the Utility Allowance claculations should be based on the lower of the Unit size and Voucher size. During testing we uncovered 6 instances in which the incorrect bedroom size was used to calculate the tenant's Payment Standard. There were also 6 instances in which the incorrect bedroom size was used to calculate the tenant's Utility Allowance. This totals out to be a 15% fail rate. The Authority manages 183 Housing Choice Vouchers during the year and had 1,906 vouchers leased during the year . As per the AICPA sampling requirements, we tested 40 files for multiple compliance requirements. During the testing period the Authority used a third party management company to handle tenant files and recertifications. As a result of this, procedures to ensure that the appropriate voucher size to calculate utility allowance was not adhered to on a consistent basis. Tenant payments due to landlords were incorrectly calculated, HAP payments incorrectly calculated. Management should review tenant files to ensure that the appropriate utility allowance is used for the type of unit under contract. Management agrees.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 519286 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $1.23M
14.871 Section 8 Housing Choice Vouchers $976,283
14.872 Public Housing Capital Fund $932,853