Finding Text
Federal Agency: U.S. Department of Housing and Urban Development (HUD), ALN 14.195 Award Year: 2025 Compliance Requirement: HUD HAP Contract Rent Adjustments and Utility Allowances Criteria: HUD program requirements require timely implementation of approved contract rent adjustments and accurate application of utility allowances matching HUD schedules. Condition/Context: During testing, updated utility allowances were not applied following a HUD-approved contract rent adjustment. Management turnover during August through September 2024 contributed to the lapse. Additional Control Conclusion: Although the adjustment was signed and approved by the proper individual, it was not implemented. Therefore, the control did not operate effectively, resulting in both a compliance issue and a control deficiency. Cause: Controls failed to ensure timely implementation of HUD-approved rent and utility updates during staffing transition. Effect or Potential Effect: Inaccurate HAP submissions and risk of future repayment obligations. Questioned Costs: None identified. Repeat Finding: No. Recommendations: Enhance review controls, cross-check HUD approvals, and assign update responsibilities clearly. Views of Responsible Officials: Management concurs and will implement revised procedures as outlined in the Corrective Action Plan.