Finding Text
2022-001 Section 8 Housing Choice Vouchers - Compliance First reported in 2021 Federal Program 14.871 Section 8 Housing Choice Vouchers Criteria or Specific Requirement Compliance with Housing and Urban Development (HUD) Requirements on the Utility Allowance Schedule If the cost of utilities is not included in the rent to the owner, HUD requirement 24 CFR section 982.517 requires the City to use a schedule of utility allowances to determine the amount an assisted family needs to receive to cover the cost of utilities. This utility allowance schedule is developed based on utility consumption and rate data for various unit sizes, structure types, and fuel types. The City is required to review its utility allowance schedules annually and to adjust them if there has been an increase of more than 10% from the current schedule. Condition Found We inquired of management and noted the utility allowance schedules had not been reviewed in the 2021-22 fiscal year. Cause Unknown. Questioned Costs There are no questioned costs related to this finding. Perspective Information These issues are isolated to this program. Identification of Repeat Findings See Finding 2021-001. Effect The City was unable to determine if there had been changes in the rates that would require them to update the current schedule. Recommendations to Prevent Future Occurrences The City should take steps to make sure there are employees to help review the utility allowance schedule. Another option would be to use an outside company to review the utility allowance schedule. Management?s Response See Management?s Corrective Action Plan later in the report.