FAC Explorer

Audit 371201

FY End
2025-03-31
Total Expended
$8.27M
Findings
2
Programs
1
Organization: Taylor Housing Commission (MI)
Year: 2025 Accepted: 2025-10-23
Auditor: HANNAH R BOND CPA PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1161280 2025-001 Material Weakness Yes E
1161281 2025-002 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $8.27M Yes 2

Contacts

Name Title Type
GV93L9NTHKB7 John Carter Auditee
7342879460 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 March 31, 2025. 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 contained in Single Audit Act Amendments of 1996 and 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 Housing 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 2025-001
Subject: Section 8 Housing Choice Voucher Program – Tenant Eligibility and Reexaminations Federal Agency: Department of Housing and Urban Development Federal Program: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Number and Year (or Other Identifying Number): CY 2025 Pass-Through Entity: Not applicable Compliance Requirement: Eligibility Audit Finding: Significant Deficiency Condition and Context: During audit fieldwork, tenant files were reviewed for compliance with Program eligibility and reexamination requirements. The following discrepancies were noted: 6 files miscalculated total tenant payment due to miscalculation of wages, incorrect utility allowances applied, or incorrect deductions applied. Criteria: 24 CFR section 982.516 states in part “Except as provided in paragraph (a)(3) of this section, the PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income.” 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 documentation may be missing. Questioned Cost: Known and projected misstatement: $78,801 Recommendation: We recommend the Commission implement and execute strengthened controls over the federal Eligibility compliance requirement to include the performance of annual reexaminations and documentation maintenance; the above discrepancies need to be addressed, and all tenant files should be reviewed for compliance.
Finding 2025-002
Subject: Section 8 Housing Choice Voucher Program – Tenant Eligibility and Reexaminations Federal Agency: Department of Housing and Urban Development Federal Program: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Number and Year (or Other Identifying Number): CY 2025 Pass-Through Entity: Not applicable Compliance Requirement: Eligibility Audit Finding: Significant Deficiency Condition and Context: During review of tenant files, it was noted that eight annual rent certifications were performed late and not at least once every 12 months. Additionally, six files miscalculated total tenant payment due to miscalculation of wages, incorrect utility allowances applied, or incorrect deductions applied. Noted inconsistencies of utility responsibilities between HAP contract, Request for Tenancy Approval, and Lease agreements. Criteria: 24 CFR section 982.516 states in part “Except as provided in paragraph (a)(3) of this section, the PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income.” 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 documentation may be missing. Questioned Cost: Known and projected misstatement: $102,884 Recommendation: We recommend the Commission implement and execute strengthened controls over the federal Eligibility compliance requirement to include the performance of annual reexaminations and documentation maintenance; the above discrepancies need to be addressed, and all tenant files should be reviewed for compliance.