Finding 1173338 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-12

AI Summary

  • Core Issue: Utility allowances were incorrectly calculated for families, violating the 2014 Appropriations Act and HUD regulations.
  • Impacted Requirements: Families with disabilities may qualify for higher utility allowances, but this was not properly implemented.
  • Recommended Follow-Up: Improve training for staff on utility allowance calculations and establish internal controls to ensure compliance.

Finding Text

"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. During the audit, we noted multiple HUD Forms 50058 had utility allowances calculated not in accordance with the above criteria. The Authority had roughly 277 vouchers issued throughout the fiscal year under examination which would translate to 3,324 housing assistance payment transactions for the year. Of these we reviewed 40 individual housing assistance payment transactions, and found 13 instances of noncompliance. Personnel responsible for calculating the utility allowances were not informed of requirements and no internal controls were in place to ensure compliance. The Authority was in violation of the Federal Regulation which resulted in errors in calculating housing assistance payments (HAP) and utility reimbursement payments.

Corrective Action Plan

Subject: Corrective Action Plan for finding 2025-001 Utilities Allowance Calculation Please find our response in regards to the utility allowance calculation: Finding No. 2025-001: Utilities Allowance Calculation Marlboro Housing Authority was made aware of this finding during the audit file process. We discovered that the error has to do with the changing of bedroom sizes within our SACS software. This is a process that staff must manually change when household sizes change, as it will not automatically correct when an interim or recertification is processed. Our staff has been briefed about this matter, and they will make sure that the household size and bedroom size is reflected correctly in our software, each time they review a participant file. This should resolve any error in utility allowance calculation going forward. I hope this plan for corrective action will satisfy this finding. Please feel free to contact me if you have any questions. Sincerely, Pamela Stevens Pamela Stevens Executive Director

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.872 PUBLIC HOUSING CAPITAL FUND $529,680
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $289,073
14.850 PUBLIC HOUSING OPERATING FUND $280,823
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $88,832