Finding 1179061 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-12

AI Summary

  • Core Issue: Three tenant files lacked proper support for utility allowance calculations, leading to incorrect HAP payments.
  • Impacted Requirements: Utility allowances must be calculated using the lower of approved voucher or actual bedroom size, as per HUD standards.
  • Recommended Follow-up: Management should review tenant files to ensure compliance with utility allowance calculations and implement a Corrective Action Plan.

Finding Text

2025-001 Utilities Allowance Calcuation Criteria The Authority is required calculated utility allowances in accordance with its utility allowance standards and reflected in HUD form 52667. The Authority must use the lower of the approved voucher bedroom size or actual bedroom size when calculating the Utility Allowance to use in the calculation. Condition Three (3) tenant files of our sample forty (40) did not have support for the calculated amount. The files either did not contain a calculation supporting amounts entered to the 50058 and HAP register or were calculated using the incorrect Unit or Voucher size. Context The Authority had roughly 135 vouchers issued throughout the fiscal year under examination which would translate to 1,620 housing assistance payment transactions for the year. Of these we reviewed 40 individual housing assistance payment transactions, and found 3 instances of noncompliance. 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 The auditee acknowledges the deficiency as highlighted in the finding. In response to this issue, the management commits to implementing a comprehensive Corrective Action Plan.

Corrective Action Plan

Corrective Action: The Housing Authority will implement a targeted Quality Control (QC) review process under the oversight of the Housing Operations Director to ensure utility allowances are calculated, documented, and applied in accordance with HUD requirements, the Authority's approved utility allowance schedule, and HUD Form 52667. The QC process will ensure that the lower of the approved voucher bedroom size or the actual unit bedroom size is consistently applied. Implementation: • The Housing Operations Director will oversee selective QC reviews of key HCV transactions, including: o New admissions o Selected annual reexaminations o Selected interim reexaminations impacting rent or utility allowances o Selected Housing Assistance Payment (HAP) contracts prior to approval • Reviews will verify: o Correct bedroom size determination o Accurate utility allowance calculations o Proper system entry and supporting documentation maintained in the tenant file and HAP registry • Management will review and correct the tenant files identified in the audit sample and document revised calculations as needed. • A standardized utility allowance calculation worksheet will be required in tenant files. • Staff will receive refresher training on utility allowance calculation and documentation requirements. • Periodic internal monitoring will be conducted to ensure ongoing compliance.

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $14.01M
14.850 PUBLIC HOUSING OPERATING FUND $1.56M
14.872 PUBLIC HOUSING CAPITAL FUND $1.10M
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $99,467
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $90,384
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $72,490