FAC Explorer

Audit 374807

FY End
2025-03-31
Total Expended
$7.12M
Findings
1
Programs
3
Organization: Pontiac Housing Commission (MI)
Year: 2025 Accepted: 2025-12-15
Auditor: HANNAH R BOND CPA PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1164891 2025-002 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $6.71M Yes 1
14.879 MAINSTREAM VOUCHERS $313,238 Yes 0
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $96,792 Yes 0

Contacts

Name Title Type
D74FX53RKJ15 Yvette Transou Auditee
2483384551 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 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 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 audit fieldwork, 40 tenant files were reviewed for compliance with Program eligibility and reexamination requirements. It was noted the Housing Commission does not perform a second party review on annual rent certifications resulting in miscalculation of tenant rent and housing assistance payments for 6 program participants. Rent miscalculations were due to miscalculations of wages or income, incorrect utility allowances, and incorrect payment standards. 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 leading to incorrect housing assistance payments. Other notifications and documentations may be missing for program eligibility. Questioned Cost: Known and projected misstatement: $112,998 Recommendation: We recommend the Housing 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.