Finding Text
2024 – 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Programs: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Federal Award Identification Number and Year: MA003 – 2024 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Special Tests – Utility Allowances Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 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 Authority did not perform a utility allowance review in the prior two years. Questioned Costs: None. Context: Utility allowance reviews are not being performed. Cause: Procedures are not in place for the Authority to ensure that the Authority is reviewing utility allowances properly. Effect: Failure to perform the required utility allowance review may result in the continued use of outdated or inaccurate utility schedules, which can lead to incorrect housing assistance payments. This may cause tenants to receive either excessive or insufficient subsidies, resulting in noncompliance with HUD regulations and potential financial exposure for the Authority. Recommendation: We recommend the Authority implement internal controls to ensure that the utility allowances are reviewed in accordance with the HUD requirements. Views of Responsible Officials: There is no disagreement with the audit finding.