FAC Explorer

Audit 368862

FY End
2024-12-31
Total Expended
$1.24M
Findings
1
Programs
2
Organization: Romulus Housing Commission (MI)
Year: 2024 Accepted: 2025-09-29
Auditor: Hannah R Bond CPA PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1156504 2024-001 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.872 Public Housing Capital Fund $741,755 Yes 0
14.850 Public Housing Operating Fund $495,259 Yes 1

Contacts

Name Title Type
MFYKS614B6M1 Sabrina Bollinger Auditee
2485934600 Hannah Bond Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the Housing Commission under programs of the federal government for the year ended December 31, 2024. Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financial statements, although the basis for determining when federal awards are expended is presented in accordance with the requirements of the Uniform Guidance, Audit of States, Local Governments, and Non-Profit Organizations. In addition, expenditures reported on the Schedule are recognized following the cost principles required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of the financial statements. Because the Schedule presents only a selected portion of the operations of the Housing Commission, it is not intended to and does not present the financial position, changes in net assets, or cash flows, if applicable, of the Housing Commission.
The Commission did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance
None of the federal expenditures presented in the schedule were provided to subrecipients

Finding Details

Finding 2024-001
Finding 2024-001 Subject: Public Housing Operating Fund – Tenant Eligibility and Reexaminations Federal Agency: Department of Housing and Urban Development Federal Program: Public Housing Operating Fund Assistance Listing Number: 14.850 Federal Award Number and Year (or Other Identifying Number): CY 2024 Pass-Through Entity: Not applicable Compliance Requirement: Eligibility Audit Finding: Material Weakness Condition and Context: Upon review of tenant files, it was noted seven annual rent certifications were not completed timely and three tenants were charged incorrect rent amounts. Criteria: 24 CFR section 960.259 requires the Commission to obtain and document in the family file third-party verification of: (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent. 24 CFR 85.20 requires the Commission to have effective internal controls and accountability must be maintained for all funds. Cause: Failure to execute internal controls over the federal Eligibility compliance requirement. Effect: Non-compliance with the federal Eligibility requirement. Tenant rents may be miscalculated, other notifications and documentations may be missing. The Commission could experience loss of revenue. Questioned Cost: Known and projected misstatement: $50,887 Recommendation: The Commission should implement internal controls over tenant files to ensure accountability. All certifications and the required documentation should be maintained in the tenant's current file. Additionally, in order to ensure certifications are performed timely and tenant information is input correctly, the Commission should have a second party review files in a timely manner.