FAC Explorer

Finding 485270 (2023-008)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-08-28
Audit: 318024
Organization: Village of North Syracuse Housing Authority (NY)
Auditor: Smith Marion

AI Summary

  • Core Issue: The utility allowances for 31 out of 40 tenants were incorrectly calculated, violating federal regulations.
  • Impacted Requirements: Compliance with the 2014 Appropriations Act Section 242 and HUD regulations for families with disabilities was not achieved.
  • Recommended Follow-Up: Management should establish 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 2023 audit.During the audit we selected 40 tenants to test, we noted 31 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.

Categories

HUD Housing Programs Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 485266 2023-004
    Material Weakness Repeat
  • 485267 2023-005
    Material Weakness Repeat
  • 485268 2023-006
    Material Weakness Repeat
  • 485269 2023-007
    Material Weakness Repeat
  • 485271 2023-009
    Significant Deficiency Repeat
  • 1061708 2023-004
    Material Weakness Repeat
  • 1061709 2023-005
    Material Weakness Repeat
  • 1061710 2023-006
    Material Weakness Repeat
  • 1061711 2023-007
    Material Weakness Repeat
  • 1061712 2023-008
    Material Weakness Repeat
  • 1061713 2023-009
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.44M