Finding Text
2023 – 005: Utility Allowance
Federal agency: U.S. Department of Housing and Urban Development
Federal program title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871, 14.879
Award period: January 1, 2023 – December 31, 2023
Type of Finding:
• Internal Control, Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: 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.
Condition: During our testing, we noted the Authority failed to maintain documentation of compliance with the requirements as stated in the criteria section of this finding.
Questioned Costs: Known - None | Likely - Undeterminable
Context: From a sample of sixty (60) program participant files selected for testing, two (2) tenant files did not include proper documentation of utility allowance. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding.
Effect: The failure of the internal controls has resulted in noncompliance with the stated criteria.
Repeat Finding: No
Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria.
Views of responsible officials: There is no disagreement with the audit finding.