Finding 1101164 (2024-003)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2025-02-27
Audit: 344146
Organization: Detroit Housing Commission (MI)

AI Summary

  • Core Issue: The Commission failed to complete required tenant recertifications for fiscal year 2024, leading to significant deficiencies and questioned costs of $876.
  • Impacted Requirements: This finding violates HUD regulations requiring annual income and composition reviews for housing assistance eligibility.
  • Recommended Follow-up: Implement procedures for timely documentation and completion of recertifications, along with ongoing staff training and random file reviews to ensure compliance.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name - Housing Vouchers Cluster - 14.871 and 14.879 Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Significant deficiency Repeat Finding - Yes 2023-001 Criteria - Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition The Commission did not complete fiscal year 2024 recertifications. Questioned Costs - $876 Identification of How Questioned Costs Were Computed - Questioned costs were computed on the individual below by identifying overpayments of subsidy charged compared to the appropriate amount. Context - A total of 60 tenant files were tested, and 2 participant files were delinquent recertifications during the year. Cause and Effect - The Commission did not have the proper controls in place to ensure tenant recertifications are completed timely. Due to the lack of adequate controls, questioned costs for overpayment of subsidy were identified above and the housing assistance payments could be incorrect for tenants. Recommendation - The Commission should establish procedures to ensure participant recertifications are documented and completed timely. Views of Responsible Officials and Planned Corrective Actions - Annual delinquent recertifications are being addressed according to HUD policy. Rent calculation training has been provided for and passed by all staff. We certify and maintain that it will be our standard operating procedure to ensure compliance with HUD policies. We will continue to mitigate PIC errors and ensure continued staff training to reduce these errors. The HCV manager will randomly review 10 percent of files for accuracy. A list will be maintained. As of February 17, 2025, HUD’s recertification score was 99.7 percent in compliance.

Categories

Questioned Costs HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 524717 2024-002
    Significant Deficiency
  • 524718 2024-002
    Significant Deficiency
  • 524719 2024-002
    Significant Deficiency
  • 524720 2024-003
    Significant Deficiency Repeat
  • 524721 2024-003
    Significant Deficiency Repeat
  • 524722 2024-003
    Significant Deficiency Repeat
  • 524723 2024-004
    Material Weakness
  • 524724 2024-004
    Material Weakness
  • 524725 2024-004
    Material Weakness
  • 524726 2024-001
    Material Weakness
  • 1101159 2024-002
    Significant Deficiency
  • 1101160 2024-002
    Significant Deficiency
  • 1101161 2024-002
    Significant Deficiency
  • 1101162 2024-003
    Significant Deficiency Repeat
  • 1101163 2024-003
    Significant Deficiency Repeat
  • 1101165 2024-004
    Material Weakness
  • 1101166 2024-004
    Material Weakness
  • 1101167 2024-004
    Material Weakness
  • 1101168 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $50.19M
14.850 Public Housing Operating Fund $19.09M
14.872 Public Housing Capital Fund $13.57M
14.871 Covid-19 - Section 8 Housing Choice Vouchers $1.39M
14.879 Mainstream Vouchers $688,076
14.870 Resident Opportunity and Supportive Services - Service Coordinators $435,416
17.274 Youthbuild $415,982
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $328,290
14.895 Jobs-Plus Pilot Initiative $211,508