Finding 2024-006
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Section 8 Housing Choice Vouchers Program
Federal Assistance Listing Numbers: 14.871
Noncompliance – N. Special Tests and Provisions – Utility Allowance Schedule
Non Compliance Material to the Financial Statements: No
Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions
Criteria: Utility Allowance Schedule. The PHA must maintain an up-to-date utility allowance schedule. 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 (24 CFR section 982.517).
Condition: Based on inspection of files and discussions with management, it was determined that the Authority did not have up-to-date utility allowance schedules on file.
Context: The utility allowance schedules that the Authority has on file have not been updated since 2018.
Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to the utility allowance schedules. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance.
Effect: The Section 8 Housing Choice Voucher Program is in non-compliance with the special tests and provisions type of compliance related to the utility allowance schedules.
Recommendation: We recommend that the Authority updates the utility allowance schedules annually that will assure compliance with the Uniform Guidance and the compliance supplement.
Views of responsible officials and planned corrective action: The Authority has recognized the significant deficiency in the Section 8 Housing Choice Voucher Program and will update the utility allowance schedules annually in accordance with HUD guidelines. Ivy Melendez, Executive Director, will be responsible to implement this corrective action by September 30, 2025.