Finding Text
Finding 2023-005: Utility Allowances
Housing Choice Voucher, 14.871
Material Weakness/Noncompliance – Special Tests and Provisions
Criteria: The Agency must maintain an up-to-date utility allowance schedule. The Agency 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 Agency had not updated utility rates since the April 1, 2021 effective date schedules.
Cause: The Agency did not perform the utility allowance analysis for the April 1, 2022 utility rates and used the same rates as in the previous year.
Effect or Potential Effect: The Agency did not comply with the requirements of 24 CFR §982.405.
Recommendation: The Agency 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.