Audit 344146

Assistance Listing Number, Federal Agency, and Program Name - 14.871 and 14.879 - Housing Vouchers Cluster Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Significant deficiency Repeat Finding - No Criteria - Under 24 CFR 982.158 and 982.404, the Commission must require the owner to correct any life threatening Housing Quality Standards (HQS) deficiencies within 30 calendar days or within a specified commission approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Commission must stop (abate) the HAP. Condition - The Commission was not able to provide support the units that had HQS deficiencies were corrected timely, and the Commission did not abate the housing assistance payments (HAP) for units that failed HQS inspections. Questioned Costs - Not applicable Context - A total of 10 inspections were tested, and the results are as follows: A total of four files did not include documentation that the HQS deficiencies were corrected within 30 days, and the housing assistance payment was not abated. Cause and Effect - The Commission did not have the proper controls in place to ensure that the HQS deficiencies were properly enforced. Due to the lack of adequate controls, the support that the HQS deficiencies were corrected was not maintained. Recommendation - The Commission should establish procedures to ensure inspection deficiency corrections are enforced and documented timely. Views of Responsible Officials and Planned Corrective Actions - Contractor has been selected and trained in Yardi Systems. The landlord liaison supervisor will work closely with the new contractor to ensure abatements are conducted timely and in compliance with program regulatory requirements. The landlord liaison supervisor along with Yardi monitoring will conduct 10 percent quality control reviews to ensure contractor is following HUD compliance guidelines, as they pertain to abatement activity.

Assistance Listing Number, Federal Agency, and Program Name - 14.871 and 14.879 - Housing Vouchers Cluster Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Significant deficiency Repeat Finding - No Criteria - Under 24 CFR 982.158 and 982.404, the Commission must require the owner to correct any life threatening Housing Quality Standards (HQS) deficiencies within 30 calendar days or within a specified commission approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Commission must stop (abate) the HAP. Condition - The Commission was not able to provide support the units that had HQS deficiencies were corrected timely, and the Commission did not abate the housing assistance payments (HAP) for units that failed HQS inspections. Questioned Costs - Not applicable Context - A total of 10 inspections were tested, and the results are as follows: A total of four files did not include documentation that the HQS deficiencies were corrected within 30 days, and the housing assistance payment was not abated. Cause and Effect - The Commission did not have the proper controls in place to ensure that the HQS deficiencies were properly enforced. Due to the lack of adequate controls, the support that the HQS deficiencies were corrected was not maintained. Recommendation - The Commission should establish procedures to ensure inspection deficiency corrections are enforced and documented timely. Views of Responsible Officials and Planned Corrective Actions - Contractor has been selected and trained in Yardi Systems. The landlord liaison supervisor will work closely with the new contractor to ensure abatements are conducted timely and in compliance with program regulatory requirements. The landlord liaison supervisor along with Yardi monitoring will conduct 10 percent quality control reviews to ensure contractor is following HUD compliance guidelines, as they pertain to abatement activity.

Assistance Listing Number, Federal Agency, and Program Name - 14.871 and 14.879 - Housing Vouchers Cluster Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Significant deficiency Repeat Finding - No Criteria - Under 24 CFR 982.158 and 982.404, the Commission must require the owner to correct any life threatening Housing Quality Standards (HQS) deficiencies within 30 calendar days or within a specified commission approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Commission must stop (abate) the HAP. Condition - The Commission was not able to provide support the units that had HQS deficiencies were corrected timely, and the Commission did not abate the housing assistance payments (HAP) for units that failed HQS inspections. Questioned Costs - Not applicable Context - A total of 10 inspections were tested, and the results are as follows: A total of four files did not include documentation that the HQS deficiencies were corrected within 30 days, and the housing assistance payment was not abated. Cause and Effect - The Commission did not have the proper controls in place to ensure that the HQS deficiencies were properly enforced. Due to the lack of adequate controls, the support that the HQS deficiencies were corrected was not maintained. Recommendation - The Commission should establish procedures to ensure inspection deficiency corrections are enforced and documented timely. Views of Responsible Officials and Planned Corrective Actions - Contractor has been selected and trained in Yardi Systems. The landlord liaison supervisor will work closely with the new contractor to ensure abatements are conducted timely and in compliance with program regulatory requirements. The landlord liaison supervisor along with Yardi monitoring will conduct 10 percent quality control reviews to ensure contractor is following HUD compliance guidelines, as they pertain to abatement activity.

Assistance Listing Number, Federal Agency, and Program Name - Housing Vouchers Cluster - 14.871 and 14.879 Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Significant deficiency Repeat Finding - Yes 2023-001 Criteria - Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition The Commission did not complete fiscal year 2024 recertifications. Questioned Costs - $876 Identification of How Questioned Costs Were Computed - Questioned costs were computed on the individual below by identifying overpayments of subsidy charged compared to the appropriate amount. Context - A total of 60 tenant files were tested, and 2 participant files were delinquent recertifications during the year. Cause and Effect - The Commission did not have the proper controls in place to ensure tenant recertifications are completed timely. Due to the lack of adequate controls, questioned costs for overpayment of subsidy were identified above and the housing assistance payments could be incorrect for tenants. Recommendation - The Commission should establish procedures to ensure participant recertifications are documented and completed timely. Views of Responsible Officials and Planned Corrective Actions - Annual delinquent recertifications are being addressed according to HUD policy. Rent calculation training has been provided for and passed by all staff. We certify and maintain that it will be our standard operating procedure to ensure compliance with HUD policies. We will continue to mitigate PIC errors and ensure continued staff training to reduce these errors. The HCV manager will randomly review 10 percent of files for accuracy. A list will be maintained. As of February 17, 2025, HUD’s recertification score was 99.7 percent in compliance.

Assistance Listing Number, Federal Agency, and Program Name - Housing Vouchers Cluster - 14.871 and 14.879 Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Significant deficiency Repeat Finding - Yes 2023-001 Criteria - Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition The Commission did not complete fiscal year 2024 recertifications. Questioned Costs - $876 Identification of How Questioned Costs Were Computed - Questioned costs were computed on the individual below by identifying overpayments of subsidy charged compared to the appropriate amount. Context - A total of 60 tenant files were tested, and 2 participant files were delinquent recertifications during the year. Cause and Effect - The Commission did not have the proper controls in place to ensure tenant recertifications are completed timely. Due to the lack of adequate controls, questioned costs for overpayment of subsidy were identified above and the housing assistance payments could be incorrect for tenants. Recommendation - The Commission should establish procedures to ensure participant recertifications are documented and completed timely. Views of Responsible Officials and Planned Corrective Actions - Annual delinquent recertifications are being addressed according to HUD policy. Rent calculation training has been provided for and passed by all staff. We certify and maintain that it will be our standard operating procedure to ensure compliance with HUD policies. We will continue to mitigate PIC errors and ensure continued staff training to reduce these errors. The HCV manager will randomly review 10 percent of files for accuracy. A list will be maintained. As of February 17, 2025, HUD’s recertification score was 99.7 percent in compliance.

Assistance Listing Number, Federal Agency, and Program Name - Housing Vouchers Cluster - 14.871 and 14.879 Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Significant deficiency Repeat Finding - Yes 2023-001 Criteria - Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition The Commission did not complete fiscal year 2024 recertifications. Questioned Costs - $876 Identification of How Questioned Costs Were Computed - Questioned costs were computed on the individual below by identifying overpayments of subsidy charged compared to the appropriate amount. Context - A total of 60 tenant files were tested, and 2 participant files were delinquent recertifications during the year. Cause and Effect - The Commission did not have the proper controls in place to ensure tenant recertifications are completed timely. Due to the lack of adequate controls, questioned costs for overpayment of subsidy were identified above and the housing assistance payments could be incorrect for tenants. Recommendation - The Commission should establish procedures to ensure participant recertifications are documented and completed timely. Views of Responsible Officials and Planned Corrective Actions - Annual delinquent recertifications are being addressed according to HUD policy. Rent calculation training has been provided for and passed by all staff. We certify and maintain that it will be our standard operating procedure to ensure compliance with HUD policies. We will continue to mitigate PIC errors and ensure continued staff training to reduce these errors. The HCV manager will randomly review 10 percent of files for accuracy. A list will be maintained. As of February 17, 2025, HUD’s recertification score was 99.7 percent in compliance.

Assistance Listing Number, Federal Agency, and Program Name - Housing Vouchers Cluster - 14.871 and 14.879 Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Under 24 CFR 982.517, the Commission must: a. Review PHA procedures for obtaining and reviewing utility rate data each year b. Review data on utility rates that the PHA obtained during the last 12 months and ascertain, based on data available at the PHA, if there has been a change of 10 percent or more in a utility rate since the last time the utility allowance schedule was revised; if so, verify that the PHA revised its utility allowance schedule to reflect the rate increase Condition - The Commission did not conduct an annual review of utility data to ensure that the utility allowance schedule was properly updated. Questioned Costs - Not applicable Context - The Commission did not conduct an annual review of the utility data to properly update the utility allowance schedule. Cause and Effect - The Commission did not have proper controls in place to review the utility rate data, which could lead to the Commission charging improper amounts for the utility allowance. Recommendation - The Commission should establish policies and procedure to ensure utility data is being reviewed annually. Views of Responsible Officials and Planned Corrective Actions - Contract has been issued to conduct utility allowance, which is underway. Detroit Housing Commission is expecting for allowance study implementation in June 2025.

Assistance Listing Number, Federal Agency, and Program Name - Housing Vouchers Cluster - 14.871 and 14.879 Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Under 24 CFR 982.517, the Commission must: a. Review PHA procedures for obtaining and reviewing utility rate data each year b. Review data on utility rates that the PHA obtained during the last 12 months and ascertain, based on data available at the PHA, if there has been a change of 10 percent or more in a utility rate since the last time the utility allowance schedule was revised; if so, verify that the PHA revised its utility allowance schedule to reflect the rate increase Condition - The Commission did not conduct an annual review of utility data to ensure that the utility allowance schedule was properly updated. Questioned Costs - Not applicable Context - The Commission did not conduct an annual review of the utility data to properly update the utility allowance schedule. Cause and Effect - The Commission did not have proper controls in place to review the utility rate data, which could lead to the Commission charging improper amounts for the utility allowance. Recommendation - The Commission should establish policies and procedure to ensure utility data is being reviewed annually. Views of Responsible Officials and Planned Corrective Actions - Contract has been issued to conduct utility allowance, which is underway. Detroit Housing Commission is expecting for allowance study implementation in June 2025.

Assistance Listing Number, Federal Agency, and Program Name - Housing Vouchers Cluster - 14.871 and 14.879 Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Under 24 CFR 982.517, the Commission must: a. Review PHA procedures for obtaining and reviewing utility rate data each year b. Review data on utility rates that the PHA obtained during the last 12 months and ascertain, based on data available at the PHA, if there has been a change of 10 percent or more in a utility rate since the last time the utility allowance schedule was revised; if so, verify that the PHA revised its utility allowance schedule to reflect the rate increase Condition - The Commission did not conduct an annual review of utility data to ensure that the utility allowance schedule was properly updated. Questioned Costs - Not applicable Context - The Commission did not conduct an annual review of the utility data to properly update the utility allowance schedule. Cause and Effect - The Commission did not have proper controls in place to review the utility rate data, which could lead to the Commission charging improper amounts for the utility allowance. Recommendation - The Commission should establish policies and procedure to ensure utility data is being reviewed annually. Views of Responsible Officials and Planned Corrective Actions - Contract has been issued to conduct utility allowance, which is underway. Detroit Housing Commission is expecting for allowance study implementation in June 2025.

Assistance Listing Number, Federal Agency, and Program Name - 14.872 - Public Housing Capital Fund Program Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Under 24 CFR 905.324, Data Reporting Requirements, the Commission must submit the following: For modernization projects, the Commission shall submit form HUD-53001, Actual Modernization Cost Certificate, within 90 days after the expenditure end date. The Commission shall submit form HUD-50075.1, Annual Statement Performance and Evaluation Report, within 90 days of the expenditure end date. Condition - The Commission did not submit the required financial report and performance report. Questioned Costs - Not applicable Context - The required financial reporting (HUD-53001) and performance report (HUD-50075.1) for grant number MI28P001501-17 were not completed within 90 days of the expenditure end date. Cause and Effect - The Commission did not have the proper controls in place to ensure the timely completion and submission of required reports. Recommendation - The Commission should establish procedures to ensure financial reporting is filed and completed timely. Views of Responsible Officials and Corrective Action Plan - The capital team project manager will reconcile HUD’s EPIC and ELOCCs system with Yardi monthly to ensure the timely filing of capital projects close out. This tracking critical spreadsheet created by the lead performance officer will trigger key reporting dates for the DHC Capital Fund Program to remain in compliance with HUD reporting deadlines. At a minimum, this critical spreadsheet is distributed monthly to the supervisor of capital and the lead performance officer to ensure compliance.

Assistance Listing Number, Federal Agency, and Program Name - 14.871 and 14.879 - Housing Vouchers Cluster Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Significant deficiency Repeat Finding - No Criteria - Under 24 CFR 982.158 and 982.404, the Commission must require the owner to correct any life threatening Housing Quality Standards (HQS) deficiencies within 30 calendar days or within a specified commission approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Commission must stop (abate) the HAP. Condition - The Commission was not able to provide support the units that had HQS deficiencies were corrected timely, and the Commission did not abate the housing assistance payments (HAP) for units that failed HQS inspections. Questioned Costs - Not applicable Context - A total of 10 inspections were tested, and the results are as follows: A total of four files did not include documentation that the HQS deficiencies were corrected within 30 days, and the housing assistance payment was not abated. Cause and Effect - The Commission did not have the proper controls in place to ensure that the HQS deficiencies were properly enforced. Due to the lack of adequate controls, the support that the HQS deficiencies were corrected was not maintained. Recommendation - The Commission should establish procedures to ensure inspection deficiency corrections are enforced and documented timely. Views of Responsible Officials and Planned Corrective Actions - Contractor has been selected and trained in Yardi Systems. The landlord liaison supervisor will work closely with the new contractor to ensure abatements are conducted timely and in compliance with program regulatory requirements. The landlord liaison supervisor along with Yardi monitoring will conduct 10 percent quality control reviews to ensure contractor is following HUD compliance guidelines, as they pertain to abatement activity.

Assistance Listing Number, Federal Agency, and Program Name - 14.871 and 14.879 - Housing Vouchers Cluster Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Significant deficiency Repeat Finding - No Criteria - Under 24 CFR 982.158 and 982.404, the Commission must require the owner to correct any life threatening Housing Quality Standards (HQS) deficiencies within 30 calendar days or within a specified commission approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Commission must stop (abate) the HAP. Condition - The Commission was not able to provide support the units that had HQS deficiencies were corrected timely, and the Commission did not abate the housing assistance payments (HAP) for units that failed HQS inspections. Questioned Costs - Not applicable Context - A total of 10 inspections were tested, and the results are as follows: A total of four files did not include documentation that the HQS deficiencies were corrected within 30 days, and the housing assistance payment was not abated. Cause and Effect - The Commission did not have the proper controls in place to ensure that the HQS deficiencies were properly enforced. Due to the lack of adequate controls, the support that the HQS deficiencies were corrected was not maintained. Recommendation - The Commission should establish procedures to ensure inspection deficiency corrections are enforced and documented timely. Views of Responsible Officials and Planned Corrective Actions - Contractor has been selected and trained in Yardi Systems. The landlord liaison supervisor will work closely with the new contractor to ensure abatements are conducted timely and in compliance with program regulatory requirements. The landlord liaison supervisor along with Yardi monitoring will conduct 10 percent quality control reviews to ensure contractor is following HUD compliance guidelines, as they pertain to abatement activity.

Assistance Listing Number, Federal Agency, and Program Name - 14.871 and 14.879 - Housing Vouchers Cluster Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Significant deficiency Repeat Finding - No Criteria - Under 24 CFR 982.158 and 982.404, the Commission must require the owner to correct any life threatening Housing Quality Standards (HQS) deficiencies within 30 calendar days or within a specified commission approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Commission must stop (abate) the HAP. Condition - The Commission was not able to provide support the units that had HQS deficiencies were corrected timely, and the Commission did not abate the housing assistance payments (HAP) for units that failed HQS inspections. Questioned Costs - Not applicable Context - A total of 10 inspections were tested, and the results are as follows: A total of four files did not include documentation that the HQS deficiencies were corrected within 30 days, and the housing assistance payment was not abated. Cause and Effect - The Commission did not have the proper controls in place to ensure that the HQS deficiencies were properly enforced. Due to the lack of adequate controls, the support that the HQS deficiencies were corrected was not maintained. Recommendation - The Commission should establish procedures to ensure inspection deficiency corrections are enforced and documented timely. Views of Responsible Officials and Planned Corrective Actions - Contractor has been selected and trained in Yardi Systems. The landlord liaison supervisor will work closely with the new contractor to ensure abatements are conducted timely and in compliance with program regulatory requirements. The landlord liaison supervisor along with Yardi monitoring will conduct 10 percent quality control reviews to ensure contractor is following HUD compliance guidelines, as they pertain to abatement activity.

Assistance Listing Number, Federal Agency, and Program Name - Housing Vouchers Cluster - 14.871 and 14.879 Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Significant deficiency Repeat Finding - Yes 2023-001 Criteria - Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition The Commission did not complete fiscal year 2024 recertifications. Questioned Costs - $876 Identification of How Questioned Costs Were Computed - Questioned costs were computed on the individual below by identifying overpayments of subsidy charged compared to the appropriate amount. Context - A total of 60 tenant files were tested, and 2 participant files were delinquent recertifications during the year. Cause and Effect - The Commission did not have the proper controls in place to ensure tenant recertifications are completed timely. Due to the lack of adequate controls, questioned costs for overpayment of subsidy were identified above and the housing assistance payments could be incorrect for tenants. Recommendation - The Commission should establish procedures to ensure participant recertifications are documented and completed timely. Views of Responsible Officials and Planned Corrective Actions - Annual delinquent recertifications are being addressed according to HUD policy. Rent calculation training has been provided for and passed by all staff. We certify and maintain that it will be our standard operating procedure to ensure compliance with HUD policies. We will continue to mitigate PIC errors and ensure continued staff training to reduce these errors. The HCV manager will randomly review 10 percent of files for accuracy. A list will be maintained. As of February 17, 2025, HUD’s recertification score was 99.7 percent in compliance.

Assistance Listing Number, Federal Agency, and Program Name - Housing Vouchers Cluster - 14.871 and 14.879 Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Significant deficiency Repeat Finding - Yes 2023-001 Criteria - Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition The Commission did not complete fiscal year 2024 recertifications. Questioned Costs - $876 Identification of How Questioned Costs Were Computed - Questioned costs were computed on the individual below by identifying overpayments of subsidy charged compared to the appropriate amount. Context - A total of 60 tenant files were tested, and 2 participant files were delinquent recertifications during the year. Cause and Effect - The Commission did not have the proper controls in place to ensure tenant recertifications are completed timely. Due to the lack of adequate controls, questioned costs for overpayment of subsidy were identified above and the housing assistance payments could be incorrect for tenants. Recommendation - The Commission should establish procedures to ensure participant recertifications are documented and completed timely. Views of Responsible Officials and Planned Corrective Actions - Annual delinquent recertifications are being addressed according to HUD policy. Rent calculation training has been provided for and passed by all staff. We certify and maintain that it will be our standard operating procedure to ensure compliance with HUD policies. We will continue to mitigate PIC errors and ensure continued staff training to reduce these errors. The HCV manager will randomly review 10 percent of files for accuracy. A list will be maintained. As of February 17, 2025, HUD’s recertification score was 99.7 percent in compliance.

Assistance Listing Number, Federal Agency, and Program Name - Housing Vouchers Cluster - 14.871 and 14.879 Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Significant deficiency Repeat Finding - Yes 2023-001 Criteria - Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition The Commission did not complete fiscal year 2024 recertifications. Questioned Costs - $876 Identification of How Questioned Costs Were Computed - Questioned costs were computed on the individual below by identifying overpayments of subsidy charged compared to the appropriate amount. Context - A total of 60 tenant files were tested, and 2 participant files were delinquent recertifications during the year. Cause and Effect - The Commission did not have the proper controls in place to ensure tenant recertifications are completed timely. Due to the lack of adequate controls, questioned costs for overpayment of subsidy were identified above and the housing assistance payments could be incorrect for tenants. Recommendation - The Commission should establish procedures to ensure participant recertifications are documented and completed timely. Views of Responsible Officials and Planned Corrective Actions - Annual delinquent recertifications are being addressed according to HUD policy. Rent calculation training has been provided for and passed by all staff. We certify and maintain that it will be our standard operating procedure to ensure compliance with HUD policies. We will continue to mitigate PIC errors and ensure continued staff training to reduce these errors. The HCV manager will randomly review 10 percent of files for accuracy. A list will be maintained. As of February 17, 2025, HUD’s recertification score was 99.7 percent in compliance.

Assistance Listing Number, Federal Agency, and Program Name - Housing Vouchers Cluster - 14.871 and 14.879 Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Under 24 CFR 982.517, the Commission must: a. Review PHA procedures for obtaining and reviewing utility rate data each year b. Review data on utility rates that the PHA obtained during the last 12 months and ascertain, based on data available at the PHA, if there has been a change of 10 percent or more in a utility rate since the last time the utility allowance schedule was revised; if so, verify that the PHA revised its utility allowance schedule to reflect the rate increase Condition - The Commission did not conduct an annual review of utility data to ensure that the utility allowance schedule was properly updated. Questioned Costs - Not applicable Context - The Commission did not conduct an annual review of the utility data to properly update the utility allowance schedule. Cause and Effect - The Commission did not have proper controls in place to review the utility rate data, which could lead to the Commission charging improper amounts for the utility allowance. Recommendation - The Commission should establish policies and procedure to ensure utility data is being reviewed annually. Views of Responsible Officials and Planned Corrective Actions - Contract has been issued to conduct utility allowance, which is underway. Detroit Housing Commission is expecting for allowance study implementation in June 2025.

Assistance Listing Number, Federal Agency, and Program Name - Housing Vouchers Cluster - 14.871 and 14.879 Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Under 24 CFR 982.517, the Commission must: a. Review PHA procedures for obtaining and reviewing utility rate data each year b. Review data on utility rates that the PHA obtained during the last 12 months and ascertain, based on data available at the PHA, if there has been a change of 10 percent or more in a utility rate since the last time the utility allowance schedule was revised; if so, verify that the PHA revised its utility allowance schedule to reflect the rate increase Condition - The Commission did not conduct an annual review of utility data to ensure that the utility allowance schedule was properly updated. Questioned Costs - Not applicable Context - The Commission did not conduct an annual review of the utility data to properly update the utility allowance schedule. Cause and Effect - The Commission did not have proper controls in place to review the utility rate data, which could lead to the Commission charging improper amounts for the utility allowance. Recommendation - The Commission should establish policies and procedure to ensure utility data is being reviewed annually. Views of Responsible Officials and Planned Corrective Actions - Contract has been issued to conduct utility allowance, which is underway. Detroit Housing Commission is expecting for allowance study implementation in June 2025.

Assistance Listing Number, Federal Agency, and Program Name - Housing Vouchers Cluster - 14.871 and 14.879 Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Under 24 CFR 982.517, the Commission must: a. Review PHA procedures for obtaining and reviewing utility rate data each year b. Review data on utility rates that the PHA obtained during the last 12 months and ascertain, based on data available at the PHA, if there has been a change of 10 percent or more in a utility rate since the last time the utility allowance schedule was revised; if so, verify that the PHA revised its utility allowance schedule to reflect the rate increase Condition - The Commission did not conduct an annual review of utility data to ensure that the utility allowance schedule was properly updated. Questioned Costs - Not applicable Context - The Commission did not conduct an annual review of the utility data to properly update the utility allowance schedule. Cause and Effect - The Commission did not have proper controls in place to review the utility rate data, which could lead to the Commission charging improper amounts for the utility allowance. Recommendation - The Commission should establish policies and procedure to ensure utility data is being reviewed annually. Views of Responsible Officials and Planned Corrective Actions - Contract has been issued to conduct utility allowance, which is underway. Detroit Housing Commission is expecting for allowance study implementation in June 2025.

Assistance Listing Number, Federal Agency, and Program Name - 14.872 - Public Housing Capital Fund Program Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Under 24 CFR 905.324, Data Reporting Requirements, the Commission must submit the following: For modernization projects, the Commission shall submit form HUD-53001, Actual Modernization Cost Certificate, within 90 days after the expenditure end date. The Commission shall submit form HUD-50075.1, Annual Statement Performance and Evaluation Report, within 90 days of the expenditure end date. Condition - The Commission did not submit the required financial report and performance report. Questioned Costs - Not applicable Context - The required financial reporting (HUD-53001) and performance report (HUD-50075.1) for grant number MI28P001501-17 were not completed within 90 days of the expenditure end date. Cause and Effect - The Commission did not have the proper controls in place to ensure the timely completion and submission of required reports. Recommendation - The Commission should establish procedures to ensure financial reporting is filed and completed timely. Views of Responsible Officials and Corrective Action Plan - The capital team project manager will reconcile HUD’s EPIC and ELOCCs system with Yardi monthly to ensure the timely filing of capital projects close out. This tracking critical spreadsheet created by the lead performance officer will trigger key reporting dates for the DHC Capital Fund Program to remain in compliance with HUD reporting deadlines. At a minimum, this critical spreadsheet is distributed monthly to the supervisor of capital and the lead performance officer to ensure compliance.