Finding 517310 (2024-002)

Condition: The Authority failed to substantiate the rate difference incurred in the current fiscal year. Criteria: Per 24 CFR section 982.517, 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% or more for a utility category or fuel type since the last time the utility allowance schedule was revised. Context: While reviewing the utility allowance studies to determine whether there was a 10% or more change in utility costs, we were unable to gather backup documentation from the PHA to analyze the utility costs. Effect: Due to the inability to determine the amount of change in utility costs, the PHA may have implemented inaccurate utility allowances which may have resulted in incorrect HAP payments. Recommendation: We recommend that the Authority list the required procedure on their annual calendar to verify that the utility rate data is analyzed, documented, and change as necessary. Documentation must include the comparison of the rates of the established utility rates to the current utility rates and the percent of change. Response: We will establish processes to gather utility information to be used to support our conclusion as to whether utility allowances have varied by more than 10%.