Finding 979616 (2023-001)

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 calculation. During our audit, we noticed on four (4) different occasions that HUD Forms 50058 had utility allowances calculated not in accordance with the above criteria. The Authority has roughly 250 vouchers issued through out the fiscal year under examination which would translate to 3,000 Housing Assistance Payment transactions for the year. Of these, we reviewed 40 individual Housing Assistance Payment transactions, and found 4 instances of noncompliance. Personnel responsible for calculating the utility allowances were not informed of requirements and no internal controls were in place to ensure compliance. The Authority was in noncompliance of the Federal Regulation which resulted in errors in calculating Housing Assistance Payments (HAP) and utility reimbursement payments. We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to the Section 8 Housing Choice Voucher Program. Management agrees.