Finding 558455 (2024-001)

Material Weakness

Requirement

Questioned Costs

Year

2024

Accepted

2025-04-30

Audit: 355161

Organization: Denham Springs Housing Authority (LA)

Auditor: Mike Estes PC

AI Summary

Answer: Utility allowances for the Section Eight Housing Program need to be updated due to a lack of annual review.
Trend: Allowances have not been reviewed since early 2023, risking non-compliance with federal regulations.
List: Review and adjust utility allowances promptly to ensure compliance and accurate Housing Assistance Payments.

Finding Text

Section Eight Housing Program-CDFA#14.871 Finding 2024-001-Utility Allowances Need Updating- Special Tests Criteria and Condition Federal regulations require that utility allowances be reviewed annually. If any category increases more than 10% since the last rate change, the allowances should be revised. Context The allowances have not been reviewed since early in 2023. Cause Apparent oversight. Effect There is a possibility that the allowances were not timely adjusted, which would have affected the Housing Assistance Payments and the tenant rent. Questioned Costs None Recommendation The allowances should be reviewed and adjusted if necessary. View of Responsible Official We will comply with the auditor’s recommendation.

Corrective Action Plan

DENHAM SPRINGS HOUSING AUTHORITY 600 Eugene Street Denham Springs, LA 70726 Phone No. (225) 664-3301 Fax No. (225) 664-3309 HOUSING AUTHORITY OF DENHAM SPRINGS, LOUISIANA CORRECTIVE ACTION PLAN YEAR ENDED SEPTEMBER 30, 2024 Finding 2024-001-Utility Allowances Need Updating Condition Federal regulations require that utility allowances be reviewed annually. If any category increases more than 10% since the last rate change, the allowances should be revised. Corrective Action Planned: We will comply with the auditor’s recommendation. Person Responsible for Corrective Action: Fred Banks, Executive Director Telephone: (225) 664-3301 Housing Authority of Denham Springs Fax: (225) 664-3309 600 Eugene Street Denham Springs, LA 70726 Anticipated Completion Date- September 20, 2025

Other Findings in this Audit

558456 2024-002

Material Weakness
1134897 2024-001

Material Weakness
1134898 2024-002

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
14.871	Section 8 Housing Choice Vouchers	$977,578
97.036	Disaster Grants - Public Assistance (presidentially Declared Disasters)	$852,988