Finding Text
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency
Grant Award No.
MN192-Housing Choice Voucher & MN192-Mainstream Voucher
Federal Award Year
2024
Criteria
The PHA must maintain an up-to-date utility allowance schedule. The PHA 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 utility allowance schedule was not reviewed by a second individual prior to implementing the
schedule.
Questioned Costs
None
Context
During our review of the Authority’s utility rate data review, it was noted that a second individual did not
review the schedule prior to the schedule being implemented.
Effect
The utility rate review may have been performed incorrectly, resulting in a utility allowance schedule
being used that does not contain up-to-date rates.
Cause
Lack of control procedures and oversight during the year.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority review its internal control policies to ensure a review over the utility
allowance schedule is performed prior to implementing the rates.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.