Finding 485264 (2022-008)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2022

Accepted

2024-08-28

Audit: 318023

Organization: Village of North Syracuse Housing Authority (NY)

Auditor: Smith Marion

AI Summary

Core Issue: The utility allowances for 29 out of 40 tested tenants were incorrectly calculated, violating federal regulations.
Impacted Requirements: Compliance with the 2014 Appropriations Act Section 242 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 2022 audit.During the audit we selected 40 tenants to test, we noted 29 out of the 40 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.

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 repa 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.

Other Findings in this Audit

485260 2022-004

Material Weakness Repeat
485261 2022-005

Material Weakness Repeat
485262 2022-006

Material Weakness Repeat
485263 2022-007

Material Weakness Repeat
485265 2022-009

Significant Deficiency Repeat
1061702 2022-004

Material Weakness Repeat
1061703 2022-005

Material Weakness Repeat
1061704 2022-006

Material Weakness Repeat
1061705 2022-007

Material Weakness Repeat
1061706 2022-008

Material Weakness Repeat
1061707 2022-009

Significant Deficiency Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.871	Section 8 Housing Choice Vouchers	$23,534