Finding 395040 (2024-004)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-04-29
Audit: 304973
Organization: City of Ashland (KY)

AI Summary

  • Core Issue: The utility allowance schedule was not updated despite a more than 10% change in utility rates, violating federal compliance requirements.
  • Impacted Requirements: This finding relates to the Housing Choice Voucher Program and the need for adherence to 24 CFR 982.517 regarding annual utility allowance reviews.
  • Recommended Follow-Up: Implement procedures to ensure annual reviews and updates of the utility allowance schedule, with changes approved by the Board of Commissioners.

Finding Text

2024-004 FEDERAL COMPLIANCE – UTILITY ALLOWANCES Federal Program Name: Housing Choice Voucher Program Catalog of Federal Domestic Assistance Number: 14.871 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Special Tests and Provisions Criteria: According to 24 CFR 982.517, the PHA must maintain an up-to-date utility schedule by annually reviewing utility rate data and adjusting its utility allowance schedule if there has been a rate change of 10 percent or more. Condition: We noted that the utility rate data was analyzed and there was a more than 10 precent change for several categories. However, the utility allowance schedule was not updated during the year. Effect and Questioned Costs: Noncompliance with 24 CFR 982.517 Repeat Finding: No Recommendation: We recommend that the PHA implement procedures to ensure that the utility allowance schedule is reviewed and updated annually as necessary with the change being approved by the Board of Commissioners. Management’s Response: Based on the review of utility rate data during FY24, the utility allowance schedule was updated and approved by the Board of Commissioners in February 2024.

Corrective Action Plan

Based on the review of utility rate data during FY24, the utility allowance schedule was updated and approved by the Board of Commissioners in February 2024.

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $3.98M
14.218 Community Development Block Grants/entitlement Grants $512,360
20.507 Federal Transit_formula Grants $169,023
20.205 Highway Planning and Construction $164,439
95.001 High Intensity Drug Trafficking Areas Program $47,657
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $30,736
20.600 State and Community Highway Safety $595