Finding 1229123 (2026-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2026
Accepted
2026-09-09

AI Summary

  • Core Issue: The Utility Allowance for the Housing Choice Voucher program had a repeat finding related to material weaknesses.
  • Impacted Requirements: Compliance with special tests and provisions for utility allowances was not adequately met.
  • Recommended Follow-Up: Ensure updated Utility Allowance Rates, effective 8/1/2026, are properly implemented and monitored to prevent future issues.

Finding Text

Finding 2026-004: Utility Allowance Housing Choice Voucher, 14.871 MaterialWeakness - Special Tests and Provisions Repeat Finding 2025-007 I agree with this finding. This finding has been resolved, updated Utility Allowance Rates were effective 8/1/2026

Corrective Action Plan

Finding 2026-004: Utility Allowances Housing Choice Voucher, 14.871 Material Weakness/Noncompliance – Special Tests and Provisions Repeat Finding 2025-007 Criteria: The Authority must maintain an up-to-date utility allowance schedule. The Authority must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition: The Authority had not updated utility rates since the April 1, 2021 effective date schedules. The Authority had obtained new utility rates during the fiscal year but the new schedules were not implemented. Cause: It was a finding in the prior year that the Authority did not update the utility allowances. The Authority contacted a company to perform the analysis but the Authority felt it was too expensive and then failed to calculate the rates itself. The Authority then contacted another company but the process has not yet been completed. Effect or Potential Effect: The Authority did not comply with the requirements of 24 CFR §982.517. Recommendation: The Authority should review the requirements of 24 CFR §982.517 and establish a system of where the utility allowance is reviewed and documented during each fiscal year. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.

Categories

Special Tests & Provisions HUD Housing Programs

Other Findings in this Audit

  • 1229121 2026-002
    Material Weakness Repeat
  • 1229122 2026-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.05M