FAC Explorer

Audit 360018

FY End
2024-09-30
Total Expended
$1.25M
Findings
2
Programs
3
Organization: Dowagiac Housing Commission (MI)
Year: 2024 Accepted: 2025-06-26
Auditor: Anderson Tackman & CO Plc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
567128 2024-001 Material Weakness - E
1143570 2024-001 Material Weakness - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $740,270 Yes 1
14.850 Public Housing Operating Fund $358,750 - 0
14.872 Public Housing Capital Fund $153,256 - 0

Contacts

Name Title Type
QPBMA5JMNWZ6 Beverly Weston Auditee
2697823786 Lynn Sadowski Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-122, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Dowagiac Housing Commission has not elected to use the 15% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Dowagiac Housing Commission and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Dowagiac Housing Commission, it is not intended to and does not present the financial position, changes in net position, or cash flows of Dowagiac Housing Commission.

Finding Details

Finding 2024-001
During the review of tenant files, it was noted 9 out of 15 files contained errors pertaining to third-party support and rent calculation. Add itionally, it was noted that a system of second party review was not in place for the year ended September 30, 2024. Criteria: E. ELIGIBILITY: 24 CFR section 982.516 requires that a PHA must reexamine family income and composition at least once every 12 months and adjust the tenant rent as necessary using the documentation from third-party verifications. Perspective Information: The Commission does not obtain updated third-party support for income items and does not calculated rent correctly. There was no system of second party review to verify the accuracy of annual rent certifications. Questioned Costs: Extrapolated - $15,653 Effect: The Commission is not in compliance with the requirements as outlined in the Eligibility Section above. Cause: Lack of controls over grant requirements. Recommendation: The Commission should consider reviewing its current policy regarding rent certifications. The Commission should ensure all persons involved in the certification process are properly trained and understand regulations in order to accurately identify errors. Additionally, the Commission should implement a thorough second party review of annual certifications to verify accuracy. Management’s Response: Management will implement stronger controls over tenant files including a more thorough second party review.
Finding 2024-001
During the review of tenant files, it was noted 9 out of 15 files contained errors pertaining to third-party support and rent calculation. Add itionally, it was noted that a system of second party review was not in place for the year ended September 30, 2024. Criteria: E. ELIGIBILITY: 24 CFR section 982.516 requires that a PHA must reexamine family income and composition at least once every 12 months and adjust the tenant rent as necessary using the documentation from third-party verifications. Perspective Information: The Commission does not obtain updated third-party support for income items and does not calculated rent correctly. There was no system of second party review to verify the accuracy of annual rent certifications. Questioned Costs: Extrapolated - $15,653 Effect: The Commission is not in compliance with the requirements as outlined in the Eligibility Section above. Cause: Lack of controls over grant requirements. Recommendation: The Commission should consider reviewing its current policy regarding rent certifications. The Commission should ensure all persons involved in the certification process are properly trained and understand regulations in order to accurately identify errors. Additionally, the Commission should implement a thorough second party review of annual certifications to verify accuracy. Management’s Response: Management will implement stronger controls over tenant files including a more thorough second party review.