Finding Text
Finding 2021-003: Utility Allowance Schedules, HQS Inspections, and HAP Vouchers (Material
Weakness)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Federal Assistance Listing Number: 14.871
Compliance Requirement: Special Tests and Provisions
Criteria: In accordance with various subsections of 24 CFR Section 982, the Authority is required to:
review utility rate data at least annually and update the utility allowance schedule as necessary;
inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality
Standards ("HQS"); and
ensure the amounts billed on the Housing Assistance Payments ("HAP") vouchers match the
applicable HUD Form 50058.
Condition: The Authority did not:
provide updated utility allowance schedules;
inspect the units to determine if they meet HQS; and
provide HUD 50058 forms that support the applicable month's HAP voucher.
Context: Of the 40 selections made, the Authority did not:
provide updated utility allowance schedules for 11 selections;
provide support for inspections to determine if the unit met HQS for 34 selections; and
provide HUD 50058 forms that support the applicable month's HAP voucher for 2 selections.
Effect: The Authority was unable to demonstrate:
the utility allowance schedules were accurate;
the units met HQS; and
the HAP vouchers filed were accurate.
Cause: The Authority's internal controls in place did not prevent the Authority from missing required
utility allowance, HQS, and HAP voucher compliance requirements.
Repeat Finding: This is not a repeat finding.
Questioned Costs: None.
Auditor's Recommendation: The Authority should review and enhance its internal controls to ensure:
the utility allowance schedules are reviewed and updated as necessary at least annually;
units are inspected annually under HQS; and
the amounts billed on the HAPs match the applicable HUD Form 50058.
Views of Responsible Officials: The Authority specialist responsible for file maintenance and
recertifications during fiscal year 2021 is no longer with the Agency. In addition the Authority
misinterpreted the COVID waiver related to HQS inspections. The Authority has experienced staff
now in place to perform these services. The Authority will revisit our policy and procedures over
recertification, HQS, and file maintenance to ensure documentation is maintained and is in compliance
with HUD regulations.