Finding 1221765 (2025-001)

FINDING No. 2025-001:Section 202 – Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Utility costs. Sample Size Information: Annual utility allowance analysis. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the owner to submit an analysis of any utility allowances with supporting documentation, make an annual review of tenant utility allowances to determine their reasonableness, and adjust the allowances, when appropriate. Statement of Condition: The Project was unable to provide the utility allowance analysis performed supporting the current utility allowance amount. Cause: The Project was not able to locate the utility allowance analysis performed. Effect or Potential Effect: Unable to verify the accuracy and reasonableness of the utility allowance amount. Auditor Non-Compliance Code: R – Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should implement procedures for compliance with all HUD regulations and ensure that all supporting documents are appropriately retained. Response Indicator: Agree. Completion Date: 9/30/2026 Response:Management has implemented procedures to ensure compliance with HUD requirements related to utility allowances and document retention. The Project will perform and document an annual utility allowance review and analysis in accordance with HUD regulations. Supporting documentation used in the analysis, including utility rate information and calculation worksheets, will be maintained in the Project's compliance files and retained in accordance with HUD record-retention requirements. Management has also established procedures to ensure that all compliance-related documentation is properly organized, reviewed, and retained to support future audits and monitoring reviews. Responsibility for maintaining the utility allowance analysis and related supporting documentation has been assigned to designated management personnel, and periodic reviews will be performed to verify that required records are complete and accessible. These corrective actions are expected to be fully implemented by September 30, 2026.