FAC Explorer

Audit 403316

FY End
2025-09-30
Total Expended
$1.32M
Findings
1
Programs
3
Organization: Dowagiac Housing Commission (MI)
Year: 2025 Accepted: 2026-06-09
Auditor: ANDERSON TACKMAN & CO PLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1217195 2025-001 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $837,160 Yes 1
14.850 PUBLIC HOUSING OPERATING FUND $323,866 Yes 0
14.872 PUBLIC HOUSING CAPITAL FUND $155,742 Yes 0

Contacts

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

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal grant activity of Dowagiac Housing Commission and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Dowagiac Housing Commission, it is not intended to and does not present the financial position, changes in net position, or cash flows of Dowagiac Housing Commission.

Finding Details

Finding 2025-001
COMPLIANCE WITH LAWS AND REGULATIONS Finding 2025-001 (repeated from 9/30/2024) (MATERIAL WEAKNESS) Housing Choice Voucher Program 14.871 Statement of Condition: During the review of tenant files, it was noted 11 out of 20 files had no system of a second party review in place, and 4 of 20 files contained errors pertaining to third-party support and rent calculation. Additionally, it was noted that one tenant file could not be located for testing for the year ended September 30, 2025. Criteria: E. ELIGIBILITY: 24 CFR section 982.516 requires that a PHA must reexamine family income and composition at least once every 12 months and adjust the tenant rent as necessary using the documentation from third-party verifications. Perspective Information: The Commission does not obtain updated third-party support for income items and does not calculated rent correctly. There was no system of second party review to verify the accuracy of annual rent certifications. Questioned Costs: Extrapolated - $13,417 Effect: The Commission is not in compliance with the requirements as outlined in the Eligibility Section above. Cause: Lack of controls over grant requirements. Recommendation: The Commission should consider reviewing its current policy regarding rent certifications. The Commission should ensure all persons involved in the certification process are properly trained and understand regulations in order to accurately identify errors. Additionally, the Commission should implement a thorough second party review of annual certifications to verify accuracy. Management’s Response: Management will implement stronger controls over tenant files including a more thorough second party review.