Finding 22401 (2022-006)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-06-19

AI Summary

  • Core Issue: The utility allowance schedule has not been updated since 2013, leading to non-compliance with federal requirements.
  • Impacted Requirements: The Commission is failing to meet the standards set by 24 CFR Section 982.517 regarding the maintenance of an up-to-date utility allowance schedule.
  • Recommended Follow-Up: Implement yearly updates and stronger internal controls to ensure compliance with utility allowance schedule requirements.

Finding Text

Finding 2022-006 Statement of Condition: It was noted the Commission has not updated its utility allowance schedule since 2013. Criteria: N. SPECIAL TESTS AND PROVISIONS ITEM 3. UTILITY ALLOWANCE SCHEDULE: 24 CFR Section 982.517 requires a PHA to maintain an up to date utility allowance schedule. Perspective Information: The Commission did not have effective internal controls over the utility allowance schedule. Questioned Costs: Unknown. Effect: The Commission is not in compliance with the requirements as outlined in the special tests and provisions, utility allowance schedule section above. Cause: Lack of controls over grant requirements. Recommendation: The Commission should implement policies and procedures to ensure the utility allowance schedule is updated yearly. Management?s Response: New management has taken over the Commission subsequent to the period under audit and will implement stronger internal controls over the utility allowance schedule.

Corrective Action Plan

Housing Choice Vouchers ? CFDA 14.871 Recommendation: The Commission should implement policies and procedures to ensure the utility allowance schedule is updated yearly. Action Taken: New management has taken over the Commission subsequent to the period under audit and will implement stronger internal controls over the utility allowance schedule. Anticipated Completion Date of Action: June 15, 2023

Categories

Special Tests & Provisions HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 22397 2022-002
    Significant Deficiency Repeat
  • 22398 2022-003
    Material Weakness
  • 22399 2022-004
    Material Weakness
  • 22400 2022-005
    Material Weakness
  • 598839 2022-002
    Significant Deficiency Repeat
  • 598840 2022-003
    Material Weakness
  • 598841 2022-004
    Material Weakness
  • 598842 2022-005
    Material Weakness
  • 598843 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $669,558
14.850 Public and Indian Housing $434,310
14.872 Public Housing Capital Fund $113,744