Finding 1151177 (2024-001)

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency Grant Award No. ND014-Housing Choice 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 During our review of the Authority’s utility rate data review, it was noted that certain utility categories increased by 10% or more since the last time the utility allowance schedule was prepared, and that the preparation of a new utility allowance schedule was not performed. Questioned Costs None Context Reviewed the 2023 rate schedules and 2024 rate schedules noting there were changes greater than 10% to water rates in 2024. Effect The utility allowance schedule did not reflect accurate allowances for current cost of utilities. Cause Lack of controls and oversight during the year. Repeat Finding No Recommendation We recommend the Authority review their policies for utility rate reviews to ensure proper analysis is occurring over rate changes. View of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.