Audit 360986

Finding 2024-002, 2023-002: Allowable Activities – Procurement Program Names and Community Services Block Grant, 93.569, Passed through Michigan Awarding Agencies: Department of Health and Human Services Finding Type: Significant Deficiency on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Community Services Block Grant, 93.569: $100,059 Context / Criteria: Wayne Metropolitan Community Action Agency and Affiliates has a policy for all purchases over $25,000 to have written bids from vendors. This policy should be followed to adhere to the Organization’s policy and ensure compliance with Uniform Guidance procurement requirements. Condition: During our disbursement testing we noted the following that suggest a deficiency in internal control and noncompliance: Community Services Block Grant, 93.569: 2 out of 40 purchases did not have formal bids, even though they were over the bid threshold of $25,000. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure the procurement policy was followed. The effect of this finding could have a significant impact on the Wayne Metropolitan Community Action Agency and Affiliates compliance with other federal and non-federal awards. Recommendation: Wayne Metropolitan Community Action Agency and Affiliates and Uniform Guidance requires disbursements to be supported by proper documentation, including vendor selection forms and bid documentation. We recommend that the Organization implement controls to ensure they are in compliance with Uniform Guidance and their purchasing policy. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-002, 2023-002: Allowable Activities – Procurement Program Names and Community Services Block Grant, 93.569, Passed through Michigan Awarding Agencies: Department of Health and Human Services Finding Type: Significant Deficiency on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Community Services Block Grant, 93.569: $100,059 Context / Criteria: Wayne Metropolitan Community Action Agency and Affiliates has a policy for all purchases over $25,000 to have written bids from vendors. This policy should be followed to adhere to the Organization’s policy and ensure compliance with Uniform Guidance procurement requirements. Condition: During our disbursement testing we noted the following that suggest a deficiency in internal control and noncompliance: Community Services Block Grant, 93.569: 2 out of 40 purchases did not have formal bids, even though they were over the bid threshold of $25,000. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure the procurement policy was followed. The effect of this finding could have a significant impact on the Wayne Metropolitan Community Action Agency and Affiliates compliance with other federal and non-federal awards. Recommendation: Wayne Metropolitan Community Action Agency and Affiliates and Uniform Guidance requires disbursements to be supported by proper documentation, including vendor selection forms and bid documentation. We recommend that the Organization implement controls to ensure they are in compliance with Uniform Guidance and their purchasing policy. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-005, 2023-003: Allowable Activities – Payroll Documentation and Approvals Program Names and Community Services Block Grant, 93.569, Passed through Michigan Awarding Agencies: Department of Health and Human Services Finding Type: Significant Deficiency on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Community Services Block Grant, 93.569: $127,667 Context / Criteria: One timesheet was lacking manager approval and two selected payroll transactions did not recalculate to the selected employee’s timesheet and approved pay rate. Condition: During our payroll testing we noted the following that suggest a deficiency in internal control and noncompliance: Community Services Block Grant, 93.569: 2 out of 40 payroll samples did not recalculate. 1 out of 40 payroll samples did not have a manager’s approval on the timesheet. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure payroll charges were properly reviewed and allocable to the program. Recommendation: Uniform Guidance requires gross pay allocable to a program be reflected in a payroll distribution report or similar method. We recommend management ensure all timesheets are approved by a supervisor, and that all employees are paid at their approved pay rate. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-005, 2023-003: Allowable Activities – Payroll Documentation and Approvals Program Names and Community Services Block Grant, 93.569, Passed through Michigan Awarding Agencies: Department of Health and Human Services Finding Type: Significant Deficiency on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Community Services Block Grant, 93.569: $127,667 Context / Criteria: One timesheet was lacking manager approval and two selected payroll transactions did not recalculate to the selected employee’s timesheet and approved pay rate. Condition: During our payroll testing we noted the following that suggest a deficiency in internal control and noncompliance: Community Services Block Grant, 93.569: 2 out of 40 payroll samples did not recalculate. 1 out of 40 payroll samples did not have a manager’s approval on the timesheet. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure payroll charges were properly reviewed and allocable to the program. Recommendation: Uniform Guidance requires gross pay allocable to a program be reflected in a payroll distribution report or similar method. We recommend management ensure all timesheets are approved by a supervisor, and that all employees are paid at their approved pay rate. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-002, 2023-002: Allowable Activities – Procurement Program Names and Community Services Block Grant, 93.569, Passed through Michigan Awarding Agencies: Department of Health and Human Services Finding Type: Significant Deficiency on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Community Services Block Grant, 93.569: $100,059 Context / Criteria: Wayne Metropolitan Community Action Agency and Affiliates has a policy for all purchases over $25,000 to have written bids from vendors. This policy should be followed to adhere to the Organization’s policy and ensure compliance with Uniform Guidance procurement requirements. Condition: During our disbursement testing we noted the following that suggest a deficiency in internal control and noncompliance: Community Services Block Grant, 93.569: 2 out of 40 purchases did not have formal bids, even though they were over the bid threshold of $25,000. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure the procurement policy was followed. The effect of this finding could have a significant impact on the Wayne Metropolitan Community Action Agency and Affiliates compliance with other federal and non-federal awards. Recommendation: Wayne Metropolitan Community Action Agency and Affiliates and Uniform Guidance requires disbursements to be supported by proper documentation, including vendor selection forms and bid documentation. We recommend that the Organization implement controls to ensure they are in compliance with Uniform Guidance and their purchasing policy. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-002, 2023-002: Allowable Activities – Procurement Program Names and Community Services Block Grant, 93.569, Passed through Michigan Awarding Agencies: Department of Health and Human Services Finding Type: Significant Deficiency on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Community Services Block Grant, 93.569: $100,059 Context / Criteria: Wayne Metropolitan Community Action Agency and Affiliates has a policy for all purchases over $25,000 to have written bids from vendors. This policy should be followed to adhere to the Organization’s policy and ensure compliance with Uniform Guidance procurement requirements. Condition: During our disbursement testing we noted the following that suggest a deficiency in internal control and noncompliance: Community Services Block Grant, 93.569: 2 out of 40 purchases did not have formal bids, even though they were over the bid threshold of $25,000. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure the procurement policy was followed. The effect of this finding could have a significant impact on the Wayne Metropolitan Community Action Agency and Affiliates compliance with other federal and non-federal awards. Recommendation: Wayne Metropolitan Community Action Agency and Affiliates and Uniform Guidance requires disbursements to be supported by proper documentation, including vendor selection forms and bid documentation. We recommend that the Organization implement controls to ensure they are in compliance with Uniform Guidance and their purchasing policy. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-005, 2023-003: Allowable Activities – Payroll Documentation and Approvals Program Names and Community Services Block Grant, 93.569, Passed through Michigan Awarding Agencies: Department of Health and Human Services Finding Type: Significant Deficiency on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Community Services Block Grant, 93.569: $127,667 Context / Criteria: One timesheet was lacking manager approval and two selected payroll transactions did not recalculate to the selected employee’s timesheet and approved pay rate. Condition: During our payroll testing we noted the following that suggest a deficiency in internal control and noncompliance: Community Services Block Grant, 93.569: 2 out of 40 payroll samples did not recalculate. 1 out of 40 payroll samples did not have a manager’s approval on the timesheet. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure payroll charges were properly reviewed and allocable to the program. Recommendation: Uniform Guidance requires gross pay allocable to a program be reflected in a payroll distribution report or similar method. We recommend management ensure all timesheets are approved by a supervisor, and that all employees are paid at their approved pay rate. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-005, 2023-003: Allowable Activities – Payroll Documentation and Approvals Program Names and Community Services Block Grant, 93.569, Passed through Michigan Awarding Agencies: Department of Health and Human Services Finding Type: Significant Deficiency on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Community Services Block Grant, 93.569: $127,667 Context / Criteria: One timesheet was lacking manager approval and two selected payroll transactions did not recalculate to the selected employee’s timesheet and approved pay rate. Condition: During our payroll testing we noted the following that suggest a deficiency in internal control and noncompliance: Community Services Block Grant, 93.569: 2 out of 40 payroll samples did not recalculate. 1 out of 40 payroll samples did not have a manager’s approval on the timesheet. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure payroll charges were properly reviewed and allocable to the program. Recommendation: Uniform Guidance requires gross pay allocable to a program be reflected in a payroll distribution report or similar method. We recommend management ensure all timesheets are approved by a supervisor, and that all employees are paid at their approved pay rate. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.

Finding 2024-006: Special Tests and Provisions – Reasonable Rental Rates Program Names and Awarding Agencies: Continuum of Care Program, 14.267, direct award from the U.S. Department of Housing and Urban Development and passed through Detroit Wayne Integrated Health Network and Homeless Action Network of Detroit Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned costs resulting in noncompliance are as follows: Continuum of Care Program, 14.267: Unknown, ranging from $0 to $200,000. Context / Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: It was noted that 3 out of 40 selected rent assistance payments did not have a calculation showing whether the rent assistance was reasonable or not. Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not maintain sufficient procedures to ensure rent payments were reasonable. Recommendation: Uniform Guidance requires the Organization to determine rent reasonableness. We recommend management review rent assistance payments prior to disbursement to ensure all required elements are present to comply with Uniform Guidance. Views of Responsible Officials and Corrective Management agrees with the finding. See accompanying corrective action Actions: plan.