Finding 1153810 (2024-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-09-22
Audit: 366907
Organization: Wadesboro Housing Authority (NC)

AI Summary

  • Core Issue: The Authority failed to review utility allowances annually as required by federal regulations.
  • Impacted Requirements: Non-compliance with 2 CFR § 982.517(c) regarding timely reviews and adjustments of utility allowances.
  • Recommended Follow-Up: Staff should learn the Housing Choice Voucher Program rules to ensure annual reviews are conducted and documented properly.

Finding Text

2024-003 Utility Allowances not reviewed at least annually (Housing Choice Voucher Program ALN# 14.871) Criteria: Federal Code of Regulations, 2 CFR § 982.517(c) requires the Authority to review its schedule of utility allowances each year, and must revise its allowance for each utility category if there has been a change of 10 percent or more in the utility rate since the last time the utility allowance schedule was revised. The PHA must maintain information supporting its annual review of utility allowances and any revisions made in its utility allowance schedule. Condition: During the year, the Authority did not perform a review of its utility allowances to determine if the utility allowances increased by 10 percent or more. The previous review was performed in June 2021. Questioned Costs: None. Effect: The Authority did not properly follow the requirements of 2 CFR § 982.517 (c). Cause: The Authority did not have an adequate understanding of the Housing Choice Voucher Program requirements to perform annual review of its utility allowances. Recommendation: The Authority’s staff should familiarize themselves with the Housing Choice Voucher Program rules and guidelines. Management Response: Management had a utility allowance review performed in January 2025. We will ensure prompt annual reviews of the Authority’s utility allowances are performed with supporting documentation.

Corrective Action Plan

Utility Allowances not reviewed at least annually (Housing Choice Voucher Program ALN# 14.871) We will implement controls to ensure utility allowances are reviewed annually. Date of completion: July 8, 2025

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1153809 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $934,271
14.850 Public Housing Operating Fund $789,809
14.871 Section 8 Housing Choice Vouchers $102,843