Finding 1134897 (2024-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-04-30
Audit: 355161
Auditor: Mike Estes PC

AI Summary

  • Answer: Utility allowances for the Section Eight Housing Program need to be updated due to a lack of annual review.
  • Trend: Allowances have not been reviewed since early 2023, risking non-compliance with federal regulations.
  • List: Review and adjust utility allowances promptly to ensure compliance and accurate Housing Assistance Payments.

Finding Text

Section Eight Housing Program-CDFA#14.871 Finding 2024-001-Utility Allowances Need Updating- Special Tests Criteria and Condition Federal regulations require that utility allowances be reviewed annually. If any category increases more than 10% since the last rate change, the allowances should be revised. Context The allowances have not been reviewed since early in 2023. Cause Apparent oversight. Effect There is a possibility that the allowances were not timely adjusted, which would have affected the Housing Assistance Payments and the tenant rent. Questioned Costs None Recommendation The allowances should be reviewed and adjusted if necessary. View of Responsible Official We will comply with the auditor’s recommendation.

Categories

HUD Housing Programs Reporting Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 558455 2024-001
    Material Weakness
  • 558456 2024-002
    Material Weakness
  • 1134898 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $977,578
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $852,988