Finding 47667 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-07-12
Audit: 52922

AI Summary

  • Core Issue: The Authority failed to review utility rate data and update the utility allowance schedule as required.
  • Impacted Requirements: Compliance with 24 CFR section 982.517, which mandates annual reviews and updates for utility allowances.
  • Recommended Follow-Up: Implement annual review controls and ensure any requested waivers are approved to maintain compliance.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: WA061VO - 2022 Award Period: October 1, 2021 ? September 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition: The Authority did not review the utility rate data or update the utility allowance schedule during the fiscal year in accordance with compliance requirements. Questioned costs: Unable to determine. Context: The utility rate data was not reviewed and the utility allowance schedule was not updated. Cause: The Authority requested an extension of the COVID-19 waiver that waived the compliance requirement; however, an extension was not granted by HUD. Effect: The Authority is not in compliance with utility allowance schedule compliance requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that a utility allowance review is performed annually. If waivers are requested, we recommend the Authority ensures the requested waivers are approved to ensure compliance. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

2022-002 Housing Voucher Cluster ? Assistance Listing No. 14.871 Recommendation: We recommend the Authority implements controls to ensure that a utility allowance review is performed annually. If waivers are requested, we recommend the Authority ensures the requested waivers are approved to ensure compliance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: If HUD waivers are available and applied for, the Section 8 Program Manager will confirm approval of the waiver before implementing the requested waiver. The waiver approval will be reviewed by the Section 8 Program Manager and co-signed by another manager at HASC. Name(s) of the contact person(s) responsible for corrective action: Cathy Kerr Planned completion date for corrective action plan: July 11, 2023

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 47666 2022-001
    Significant Deficiency
  • 47668 2022-001
    Significant Deficiency
  • 47669 2022-002
    Significant Deficiency
  • 624108 2022-001
    Significant Deficiency
  • 624109 2022-002
    Significant Deficiency
  • 624110 2022-001
    Significant Deficiency
  • 624111 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $4.55M
10.405 Farm Labor Housing Loans (beginning of the Year) $1.86M
93.568 Low-Income Home Energy Assistance $269,167
10.405 Farm Labor Housing Loans and Grants $143,019
10.427 Rural Rental Assistance Payments $142,967
81.042 Weatherization Assistance for Low-Income Persons $106,835
14.896 Pih Family Self-Sufficiency Program $101,878
21.023 Covid 19 Emergency Rental Assistance Program $14,218
14.871 Emergency Housing Vouchers $92