Finding 7237 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-01-03
Audit: 9388

AI Summary

  • Core Issue: Utility allowances were incorrectly calculated in 2 out of 40 tenant files, not using the lower of the approved voucher or actual bedroom size.
  • Impacted Requirements: The Authority must follow HUD standards for utility allowance calculations as outlined in form 52667.
  • Recommended Follow-Up: Management should review tenant files to ensure compliance with the correct utility allowance calculations.

Finding Text

Utility Allowances Calculations Criteria: The Authority is required calculated utility allowances in accordance with its utility allowance standards and reflected in HUD form 52667. The Authority must use the lower of the approved voucher bedroom size or actual bedroom size when calculating the Utility Allowance to use in the calculationCondition: 40 tenant files of our sample 2 contained utility allowances that were not the lower of the approved voucher bedroom size or actual bedroom size when calculating the Utility Allowance to use in the calculation. Context: The Authority manages 1200 Housing Choice Vouchers during the year. We sampled 40 tenant files for multiple compliance requirements. Cause: Procedures to ensure that the appropriate utility allowance was note adhered to on a consistent basis. Effect: Tenant payments due to landlords were incorrectly calculated, HAP payments incorrectly calculated. Recommendations: Management should review tenant files to ensure that the appropriate utility allowance is used for the type of unit under contract. Management Views: We agree with this finding and have outlined our plan of action in our corrective action plan.

Corrective Action Plan

The first step is to convert to a new software system that is more intuitive in selecting the correct utility allowance. Second, we hired a new HCV Director several months ago who will have higher standards, more oversight, and provide additional training to the case managers. Third, the HCV department has been down two case manager positions which put additional workload on the remaining case managers. We need to maintain a full staff to keep the case management at acceptable levels. Fourth, we have created a new Quality Control position who will be responsible for reviewing case manager files and calculations for accuracy and adherence to policy. Anticipated Completion Date: NCHA converted to a new software platform on November 1, 2023. New HCV Director was hired on July 1, 2023. Additional training on Utility Allowances was completed by December 1, 2023 HCV department is at full-staff effective December 7, 2023. NCHA is actively searching for a qualified candidate for the Quality Control position. We anticipate filing this position before the end of January 2024.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 583679 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $23.04M
14.896 Family Self-Sufficiency Program $50,971