Finding 2628 (2023-002)

The Authority is required calculated utility allowances in accordance with its utility allowance standards and reflected in HUD form 52667. The Authority must use the lower of the approved voucher bedroom size or actual bedroom size when calculating the Utility Allowance to use in the calculation. 6 tenant files of our sample of 20, which results in a 30% fail rate, contained utility allowances that were not the lower of the approved voucher bedroom size or actual bedroom size when calculating the Utility Allowance to use in the calculation. The Authority manages 183 Housing Choice Vouchers during the year. As per the AICPA sampling requirements, we tested 20 files for multiple compliance requirements. During the testing period the Authority used a third party management company to handle tenant files and recertifications. As a result of this, procedures to ensure that the appropriate utility allowance was not adhered to on a consistent basis. Tenant payments due to landlords were incorrectly calculated, HAP payments incorrectly calculated. Management should review tenant files to ensure that the appropriate utility allowance is used for the type of unit under contract. Management agrees.