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 2022 audit. During the audit we selected 10 tenants to test, we noted 10 out of the 10 tenants did not have an accurate utility allowance calculation. Based on this projection, the error rate would be 100%. 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 Housing Choice Voucher Program. Management agrees with the finding and have outlined a plan of action in the corrective action plan section of this report.