FAC Explorer

Finding 501753 (2024-005)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-10-04
Audit: 323838
Organization: Low Rent Housing Agency of Grinnell, Iowa (IA)
Auditor: Niewedde & Wiens Cpa's

AI Summary

  • Core Issue: The Authority has not updated its utility allowance schedule since April 2021, violating federal requirements.
  • Impacted Requirements: Noncompliance with 24 CFR §982.517, which mandates annual reviews and updates of utility rates.
  • Recommended Follow-Up: Establish a yearly review process for utility allowances to ensure compliance with federal regulations.

Finding Text

Finding 2024-005: Utility Allowances Housing Choice Voucher, 14.871 Material Weakness/Noncompliance – Special Tests and Provisions Repeat Finding 2023-005 Criteria: The Authority must maintain an up-to-date utility allowance schedule. The Authority 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 had not updated utility rates since the April 1, 2021 effective date schedules. Cause: It was a finding in the prior year that the Authority did not update the utility allowances. The Authority contacted a company to perform the analysis but the Authority felt it was too expensive and then failed to calculate the rates itself. Effect or Potential Effect: The Authority did not comply with the requirements of 24 CFR §982.405. Recommendation: The Authority should review the requirements of 24 CFR §982.405 and establish a system of where the utility allowance is reviewed and documented during each fiscal year. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.

Corrective Action Plan

Finding 2024-005 Utility Allowance Material Weakness/Non-Compliance – Special Tests and Provisions I agree with finding I have reached out to several companies that provide this service; however, the cost has either been too high, or this HA is to small for them to provide this service. As a suggestion from another HA, I have again reached out to our software company requesting information or a quote. As of today’s date, I have made three requests with no answer back.

Categories

Special Tests & Provisions HUD Housing Programs Material Weakness

Other Findings in this Audit

  • 501750 2024-002
    Material Weakness Repeat
  • 501751 2024-003
    Material Weakness Repeat
  • 501752 2024-004
    Material Weakness Repeat
  • 1078192 2024-002
    Material Weakness Repeat
  • 1078193 2024-003
    Material Weakness Repeat
  • 1078194 2024-004
    Material Weakness Repeat
  • 1078195 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.12M