Finding 1218214 (2025-003)

Finding 2025-003: Eligibility – Utility Allowance (UA) not in agreement with UA Schedule - Significant Deficiency Condition: During testing of tenant files, we noted one instance where the utility allowance on the Tenant Income Certification (TIC) form did not agree to the Utility Allowance Schedule. Criteria: The utility allowance used in tenant rent calculations must agree with the public housing authority’s current approved Utility Allowance Schedule in accordance with 24 CFR § 982.517. Effect: This item could result in inaccurate tenant rent calculations, improper housing assistance payments, and potential questioned costs. Cause: Inadequate internal controls and insufficient supervisory review and reconciliation procedures between tenant documentation and the approved Utility Allowance Schedule. Recommendation: We recommend management implement a procedure requiring verification of the utility allowance on the TIC matches the current public housing authority approved Utility Allowance Schedule before finalizing each tenant certification. Further, we recommend management has ensured the Company has access to the up-to-date and approved Utility Allowance Schedule. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. Management will update procedures to require a documented comparison of the utility allowance on the TIC to the current PHA-approved schedule as part of the certification process.