Finding 1164705 (2025-005)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
$1
Year
2025
Accepted
2025-12-12

AI Summary

  • Core Issue: An incorrect utility allowance was used in calculating tenant income for the Housing Choice Voucher Program.
  • Impacted Requirements: The calculation did not follow the Housing Choice Voucher Program Guidebook, leading to an overstatement of housing assistance payments.
  • Recommended Follow-Up: Strengthen procedures for family income recertification to prevent future errors.

Finding Text

Statement of Condition – For the Housing Choice Voucher Program, we reviewed 40 files (recertification files and new files) for fiscal year ended March 31, 2025. We reviewed 5 files for families who moved out during the fiscal year ended March 31, 2025. We noted 1 instance in which an incorrect utility allowance was used in determining total tenant income. Criteria – Per the Housing Choice Voucher Program Guidebook (Utility Allowances), “When calculating the utility allowance for a family, the PHA must use the lower of the unit size leased or the family’s voucher size determined the PHA’s subsidy standards…” Effect – For the files referenced above, the Authority used an incorrect unit size in calculating the utility allowance. As a result, the monthly housing assistance payment was overstated by $41 per month. Cause – Incorrect procedures were followed in regards to calculating total family income. Recommendation – Procedures surrounding family income recertification processes should be strengthened. Views of responsible officials and planned corrective actions – The Authority agrees with this finding. Please refer to the corrective action plan on page 100.

Corrective Action Plan

The Authority agrees with the finding. For the file in question, the utility reimbursement payment was rolled over from the prior software. During the recertification process, the new software reflected the information reported in the prior system. The Authority is working with the new software to address and resolve this issue.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

  • 1164702 2025-002
    Material Weakness Repeat
  • 1164703 2025-003
    Material Weakness Repeat
  • 1164704 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 PUBLIC HOUSING OPERATING FUND $3.61M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $2.95M
14.872 PUBLIC HOUSING CAPITAL FUND $2.49M
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $97,605
14.269 HURRICANE SANDY COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY GRANTS (CDBG-DR) $51,452
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $21,148