Finding 638360 (2022-006)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-16

AI Summary

  • Core Issue: The Commission lacks adequate internal controls to ensure tenant utility allowances are calculated correctly.
  • Impacted Requirements: Compliance with HUD regulations regarding tenant utility allowances, including annual reviews and adjustments.
  • Recommended Follow-Up: Review and improve procedures for calculating utility allowances and train all Section 8 employees on these updates.

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.

Categories

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 61898 2022-001
    Significant Deficiency
  • 61899 2022-002
    Significant Deficiency
  • 61900 2022-003
    Significant Deficiency
  • 61901 2022-001
    Significant Deficiency
  • 61902 2022-002
    Significant Deficiency
  • 61903 2022-003
    Significant Deficiency
  • 61904 2022-001
    Significant Deficiency
  • 61905 2022-002
    Significant Deficiency
  • 61906 2022-003
    Significant Deficiency
  • 61907 2022-001
    Significant Deficiency
  • 61908 2022-002
    Significant Deficiency
  • 61909 2022-003
    Significant Deficiency
  • 61910 2022-001
    Significant Deficiency
  • 61911 2022-002
    Significant Deficiency
  • 61912 2022-003
    Significant Deficiency
  • 61913 2022-004
    Material Weakness
  • 61914 2022-005
    Material Weakness
  • 61915 2022-006
    Significant Deficiency
  • 61916 2022-004
    Material Weakness
  • 61917 2022-005
    Material Weakness
  • 61918 2022-006
    Significant Deficiency
  • 638340 2022-001
    Significant Deficiency
  • 638341 2022-002
    Significant Deficiency
  • 638342 2022-003
    Significant Deficiency
  • 638343 2022-001
    Significant Deficiency
  • 638344 2022-002
    Significant Deficiency
  • 638345 2022-003
    Significant Deficiency
  • 638346 2022-001
    Significant Deficiency
  • 638347 2022-002
    Significant Deficiency
  • 638348 2022-003
    Significant Deficiency
  • 638349 2022-001
    Significant Deficiency
  • 638350 2022-002
    Significant Deficiency
  • 638351 2022-003
    Significant Deficiency
  • 638352 2022-001
    Significant Deficiency
  • 638353 2022-002
    Significant Deficiency
  • 638354 2022-003
    Significant Deficiency
  • 638355 2022-004
    Material Weakness
  • 638356 2022-005
    Material Weakness
  • 638357 2022-006
    Significant Deficiency
  • 638358 2022-004
    Material Weakness
  • 638359 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.188 Housing Finance Agencies (hfa) Risk Sharing Program - (beginning Loan Balance) $323.76M
14.871 Section 8 Housing Choice Vouchers $128.31M
14.267 Continuum of Care Program $4.30M
14.195 Section 8 Housing Assistance Payments Program Special Allocations $4.22M
14.879 5-Year Mainstream Vouchers $1.94M
14.871 Section 8 Housing Choice Vouchers - Cares Funds $1.32M
93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants $767,848
14.871 Section 8 Housing Choice Vouchers - Emergency Housing Vouchers $591,725
14.896 Family Self-Sufficiency Program $405,968
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $400,412
97.036 Covid- 19 Disaster Grants - Public Assistance (presidentially Declared Disasters) $374,096
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $40,817
14.879 5-Year Mainstream Vouchers - Cares Funds $15,258
14.850 Public and Indian Housing $532