Finding 385408 (2020-008)

Material Weakness

Requirement

Questioned Costs

Year

2020

Accepted

2024-03-27

Audit: 298259

Organization: Village of North Syracuse Housing Authority (NY)

Auditor: Smith Marion & CO

AI Summary

Core Issue: The utility allowances for 17 out of 24 tested tenants were incorrectly calculated, violating federal regulations.
Impacted Requirements: Compliance with the 2014 Appropriations Act and HUD regulations regarding utility allowances for families, especially those with disabilities.
Recommended Follow-Up: Management should establish clear procedures and training to ensure accurate utility allowance calculations and compliance with regulations.

Finding Text

In accordance with the 2014 Appropriations Act Section 242, the utility allowance for a family shall be the lower of: (1) The utility allowance amount for the family unit size; or (2) the utility allowance amount for the unit size of the unit rented by the family. However, upon the request of a family that includes a person with disabilities, the PHA must approve a utility allowance higher than the applicable amount if such a higher utility allowance is needed as a reasonable accommodation in accordance with HUD's regulations in 24 CFR part 8 to make the program accessible to and usable by the family member with a disability. This provision applies only to vouchers issued after the effective date of this notice (June 12, 2014) and to current program participants. For current program participants, a PHA must implement the new allowance at the family's next annual reexamination, provided that the PHA is able to provide a family with at least 60 days' notice prior to the reexamination. The above requirements were not met for the 2020 audit. During the audit we selected 24 tenants to test, we noted 17 out of the 24 tenants had HUD Forms 50058 with utility allowances calculated that could not be substantiated in accordance with the above criteria. Personnel responsible for calculating the utility allowances were not informed of requirements and no internal controls were in place to ensure compliance. The Authority was in violation of the Federal Regulation which resulted in errors in calculating housing assistance payments (HAP) and utility reimbursement payments. We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to the Section 8 Housing Choice Voucher Program. See Management's Corrective Action plan.

Corrective Action Plan

Finding # 2020-008 Utility Allowance Calculation Corrective Action Plan: When the new director, Robert Weismore, was hired on September 7, 2022, he replaced the former director and 3 staff members. In October he hired the current staff of Ms. Schaefer, Ms. Lynn. Ms. Filipski was hired as a part time employee in the middle of September 2022. For the next 2 months the staff reviewed each file and recalculated the figures using the correct payment standards for the necessary period and also used the September 1, 2022 approved utility schedule installed by the current staff. The recalculations caused the North Syracuse Housing Authority to reimburse $25,463 to previously miscalculated tenants. Also, had to repay HUD $23,000. The current payment standards are up to date and the current utility schedule was updated effective 7/1/2023 and will be updated effective 7 /1/24 and each July thereafter. Anticipated Completion Date: Currently in progress

Other Findings in this Audit

385404 2020-004

Material Weakness
385405 2020-005

Material Weakness
385406 2020-006

Material Weakness
385407 2020-007

Material Weakness
385409 2020-009

Significant Deficiency
961846 2020-004

Material Weakness
961847 2020-005

Material Weakness
961848 2020-006

Material Weakness
961849 2020-007

Material Weakness
961850 2020-008

Material Weakness
961851 2020-009

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.871	Section 8 Housing Choice Vouchers	$1.35M