Finding Text
FINDING No. 2026-002: 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 utility allowances with supporting documentation, to perform an annual review of tenant utility allowances to determine their reasonableness, and to adjust the allowances, when deemed appropriate. Statement of Condition: The reasonableness of tenant utility allowances was not assessed by management. Cause: Management did not perform an annual review of tenant utility allowances for the current year. Effect or Potential Effect: Unable to verify the reasonableness of tenant utility allowances. 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 applicable HUD regulations and ensure the performance of an annual review of tenant utility allowances with supporting documentation maintained. Response Indicator: Agree. Completion Date: 3/31/2027 Response: Staff training has been provided regarding UA support and included in monthly reporting procedures.