Finding Text
Finding SA2021-007: UEL Formula (Form 52722) – Utility Expense Reporting AL number: 14.850 AL Title: Public and Indian Housing Name of Federal Agency: Department of Housing and Urban Development Federal Award Identification number and year: CA010 (2021) Criteria: Accounting to 24 CFR 990.170, the Utility Expense Level (UEL) is used to calculate the utility portion of the Operating Fund subsidy. Public Housing Authorities (PHAs) must retain utility consumption and costs data pursuant to 990.325 and report it on Form 52722. Condition: During our audit, we noted that the Authority filed Form 52722; however, the supporting documentation for utility consumption and cost data was not available, as the Authority was unable to retrieve the related backup records for review. Cause: We understand that the staff overseeing the federal awards during fiscal year 2021 are no longer with the Authority, and therefore, the staff overseeing the federal awards subsequent to the fiscal year were unable to provide the supporting documents. Effect: We were unable to verify the accuracy and completeness of the utility consumption and cost data reported to Form 52722. Recommendation: The Housing Authority should strengthen its internal control procedures to ensure that all utility invoices and supporting documentation are accurately retained, readily accessible in the future audit. Management Response: The Authority agrees with the finding. Procedures are being enhanced to ensure all utility invoices, consumption data, and related backup documentation are retained and filed systematically. Staff will maintain a complete utility expense folder for each fiscal year and ensure that Form 52722 submissions are fully supported. Training and periodic internal reviews will be established to verify compliance with 24 CFR 990.170 and 990.325.