Finding Text
2024-003 Noncompliance with Special Tests and Provisions- HUD Form 52722 Utilities Expense Level (Public Housing Program ALN 14.850) Criteria: Federal Code of Regulations, Part 5 (24 CFR § 990.175) requires the Authority to report actual utility consumption by utility type for its Public Housing Program. Condition: The Authority included gas costs for its Section 8 New Construction program in the amounts reported for the period July 1, 2022 through June 30, 2023 in the Authority’s Public Housing Form 52722. The amount of Gas expense included that should not have been totaled $16,770. Questioned Costs: $18,565 Effect: The Authority did not properly report actual utility consumption which resulted in the Authority being overfunded by $18,565 for calendar year 2024. Cause: The Authority did not properly allocate the cost of gas to its Section 8 New Construction program during the Authority’s fiscal year 2023. Recommendation: The Authority should implement a review process whereby the Operating Subsidy calculation is reviewed by an appropriate Staff before calculation is submitted to HUD to ensure actual costs are correctly reported. Management Response: Operating Subsidy calculations will be reviewed by an appropriate Staff of the Authority before calculations are submitted to HUD to ensure accurate reporting.