Finding Text
Assistance Listing Number, Federal Agency, and Program Name - Housing Vouchers Cluster - 14.871 and 14.879
Federal Award Identification Number and Year - Not applicable
Pass through Entity - Not applicable
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding - No
Criteria - Under 24 CFR 982.517, the Commission must:
a. Review PHA procedures for obtaining and reviewing utility rate data each year
b. Review data on utility rates that the PHA obtained during the last 12 months and ascertain, based on data available at the PHA, if there has been a change of 10 percent or more in a utility rate since the last time the utility allowance schedule was revised; if so, verify that the PHA revised its utility allowance schedule to reflect the rate increase
Condition - The Commission did not conduct an annual review of utility data to ensure that the utility allowance schedule was properly updated.
Questioned Costs - Not applicable
Context - The Commission did not conduct an annual review of the utility data to properly update the utility allowance schedule.
Cause and Effect - The Commission did not have proper controls in place to review the utility rate data, which could lead to the Commission charging improper amounts for the utility allowance.
Recommendation - The Commission should establish policies and procedure to ensure utility data is being reviewed annually.
Views of Responsible Officials and Planned Corrective Actions - Contract has been issued to conduct utility allowance, which is underway. Detroit Housing Commission is expecting for allowance study implementation in June 2025.