Finding 623654 (2022-004)

-
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-09-28
Audit: 52829

AI Summary

  • Core Issue: The PHA paid a consultant $5,700 monthly for services that could have been obtained more cheaply.
  • Impacted Requirements: Costs must be necessary and reasonable under the Housing Choice Voucher Program guidelines.
  • Recommended Follow-Up: Explore less expensive alternatives for consulting services, such as seeking help from HUD or neighboring authorities.

Finding Text

2022-004 ? Allowable Costs/Cost Principles ? Housing Choice Voucher Program ? ALN #14.871. Criteria or Specific Requirement: Allowable costs should be a necessary and reasonable expense of the program. Condition: ? The PHA engaged a consult to provide consulting services related to housing authority policies and other matters. The consultant was paid in monthly amounts of $5,700 which totaled $28,500 in 2022 and $22,800 in 2021. Cause: Unknown. Effect: Monthly amounts of $5,700 were paid to a consultant when less expensive forms of assistance could have been obtained. Questioned Costs: $28,500 in 2022 and $22,800 in 2021. Repeat Finding: Not a repeat finding. Recommendation: Program assistance can be obtained with less expensive methods. For example, the PHA could have asked HUD for assistance or asked for assistance from a neighboring housing authority. Response: The PHA?s new Executive Director will find a more reasonable way to provide guidance with policies and other matters.

Categories

Questioned Costs HUD Housing Programs Allowable Costs / Cost Principles

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.69M