Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 8 Project-Based Cluster Assistance Listing Number: 14.195/14.856 Federal Award Identification Number and Year: MD004 (various funding increments active during period 7/1/21-6/30/22) Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ? Significant Deficiencies in Internal Control over Compliance. ? Other Matters Criteria: The PHA or owner must (a) establish or ensure tenant utility allowances based on utility consumption and rate data for various sized units, structure types, and fuel types, (b) make an annual review of tenant utility allowances to determine their reasonableness, and (c) adjust the allowances, when appropriate (24 CFR sections 5.603, 880.610, 881.601, 882.510, 882.808(k), 883.701, 884.220, 886.126, and 886.326). Condition: During our testing, we noted the Commission did not have adequate internal controls designed to ensure that tenant utility allowances were properly calculated. Questioned costs: Unknown Context: Testing of 40 tenant files for eligibility standards revealed that 1 file had the following exception: - 1 recertification displayed a tenant utility allowance that did not match the value listed in HUD Form-52667 effective for the period tested. Cause: The Commission does not have controls in place to ensure it is meeting tenant utility allowance requirements set by HUD. Effect: The Commission is not in compliance with program requirements over tenant utility allowances. Repeat Finding: Not a repeat. Recommendation: The Commission should review the procedures taken by Section 8 Cluster employees to ensure that they correctly add utility allowance values from HUD Form-52667 to newly processed certifications. All Section 8 cluster employees should be trained on any changes made to the these procedures. View of Responsible Officials: There is no disagreement with the audit finding.