Finding 1171891 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-02

AI Summary

  • Core Issue: Utility allowances for some families were calculated incorrectly, violating the 2014 Appropriations Act criteria.
  • Impacted Requirements: The calculation must reflect either the family unit size or the rented unit size, with higher allowances for families with disabilities as needed.
  • Recommended Follow-Up: Management should audit tenant files to confirm correct utility allowances are applied and address any discrepancies.

Finding Text

2025-002 Utilities Allowance Calcuation Criteria "In accordance with the 2014 Appropriations Act Section 242, the utility allowance for a family shall be the lower of: (1) The utility allowance amount for the family unit size; or (2) the utility allowance amount for the unit size of the unit rented by the family. However, upon the request of a family that includes a person with disabilities, the PHA must approve a utility allowance higher than the applicable amount if such a higher utility allowance is needed as a reasonable accommodation in accordance with HUD's regulations in 24 CFR part 8 to make the program accessible to and usable by the family member with a disability. This provision applies only to vouchers issued after the effective date of this notice (June 12, 2014) and to current program participants. For current program participants, a PHA must implement the new allowance at the family's next annual reexamination, provided that the PHA is able to provide a family with at least 60 days' notice prior to the reexamination. " Condition During the audit, we noted multiple HUD Forms 50058 had utility allowances calculated not in accordance with the above criteria. Context Due to a software issue 14 of the 40 vouchers we tested did not have the correct Utility Allowance. Cause Procedures to ensure that the appropriate utility allowance was note adhered to on a consistent basis. Effect Tenant payments due to landlords were incorrectly calculated, HAP payments incorrectly calculated. Recommendations Management should review tenant files to ensure that the appropriate utility allowance is used for the type of unit under contract. Questioned Costs None Management Views Management Agrees

Corrective Action Plan

Finding 2025-002: Housing Choice Voucher Program – Utility Allowance Reference to Audit Report: Auditors found that utility allowances on HUD Form 50058 were not consistently calculated in accordance with Section 242 of the 2014 Appropriations Act. Cause: Software errors and inconsistent application of procedures. Effect: Tenant payments and Housing Assistance Payments (HAP) were incorrectly calculated. Corrective Action Plan: -Work with software vendor to correct calculation errors. -Conduct a review of tenant files and make adjustments where necessary. -Update internal procedures to require verification of utility allowance at annual reexaminations. -Provide refresher training to program staff. -Perform quarterly spot checks of HUD Form 50058 entries. Responsible Parties: -Executive Director – oversight and compliance. -Program Manager – staff training, file review, and monitoring. Timeline: -30 days: Correct software issue and begin file review. -60 days: Complete file review and training. -Ongoing: Quarterly monitoring. Questioned Costs: None. Management Views: Management agrees. Conclusion The College Park Authority acknowledges both findings and has established corrective action plans with clear responsibilities, timelines, and monitoring procedures to ensure compliance with HUD regulations and prevent recurrence.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1171892 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $6.37M
14.850 PUBLIC HOUSING OPERATING FUND $1.56M
14.872 PUBLIC HOUSING CAPITAL FUND $1.13M
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $175,198
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $80,470