Finding 1182309 (2025-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-03-24

AI Summary

  • Core Issue: Utility allowances for Housing Choice Vouchers were not consistently calculated, leading to discrepancies between calculated and actual payments.
  • Impacted Requirements: Payments must align with approved utility rates; inconsistencies were noted in 3 out of 40 cases tested.
  • Recommended Follow-Up: Management should improve procedures to ensure utility calculations match actual payments to maintain accuracy.

Finding Text

Section III. Federal Award Findings and Questioned Costs 2025-002: Record Retention and Accuracy Housing Choice Vouchers - 14.871 Criteria or specific requirement (including statutory, regulatory, or other citation): Utility allowances paid to recipients should be in accordance with approved utility rates. Condition and context: Of 40 program benefits tested for 2025, the following exceptions were noted: • Three instances whereby the utility allowance calculated a different amount than the actual payment. Variances between the HAP and utility calculations and amounts paid ranged from $17 to $95. Cause: Inconsistency in the application of established Village policies and procedures principally due to staffing challenges and the volume of transactions. Effect or potential effect: Without proper documentation to demonstrate the propriety of benefits issued, benefits may be issued in amounts that are incorrect. Questioned costs: None. Identification as a repeat finding, if applicable: Repeated, see finding 2024-002. Recommendation: Management should enhance procedures to ensure that the utility calculations match the actual payments to ensure accuracy. Views of responsible officials: As detailed in the Corrective Action Plan, management has agreed to the findings and recommendations above.

Corrective Action Plan

Management has implemented a new software program which automates utility allowance calculations reducing the risk of error.

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $3.93M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $340,194
14.269 HURRICANE SANDY COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY GRANTS (CDBG-DR) $175,065
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $113,400