Finding 1153050 (2022-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2025-09-15

AI Summary

  • Core Issue: Inaccurate tenant contributions and missing income evaluation forms hindered verification of housing assistance calculations.
  • Impacted Requirements: Compliance with U.S. Housing Act and HUD regulations regarding participant contributions and income assessments.
  • Recommended Follow-Up: Ensure all income verification documents, including Recertification and Adjustment Notification forms, are maintained for each participant.

Finding Text

Program Name – Continuum of Care Program CFDA Number – 14.267 Finding Type – Material Weakness and Noncompliance Criteria – Each program participant on whose behalf rental assistance payments are made must pay a contribution toward rent in accordance with section 3(a)(1) of the U.S. Housing Act of 1937 (42 U.S.C. 1437a(a)(1)). Income of program participants must be calculated in accordance with 24 CFR 5.609 and 24 CFR 5.611(a). For each program participant who receives housing assistance where rent or an occupancy charge is paid by the program participant, the recipient must keep the income evaluation form specified by HUD and completed by the recipient. Condition – During the audit we tested 60 samples and noted: • For 2 of the samples tested the calculated tenant contribution resulted in lower housing assistant than the one charged to the program. • For 7 of the samples tested the income evaluation form was not available for review and we could not verify that the housing assistance amount charge to the program was accurate based on the participants’ income. Questioned Cost – Unknown Identification of a Repeat Finding – This is not a repeat finding from the immediate previous audit Cause/Effect – Due to the issues noted above, we could not verify the accuracy of certain tenant contribution calculations and amounts. Recommendation – We recommend that MAP maintains documentation for all income verification including Recertification and Adjustment Notification forms for each program participants.

Corrective Action Plan

Michigan Ability Partners strives to maintain compliance with all HUD requirements, however due to the challenges of social distancing and the requirement of remote work during the COVID era, meeting in person with clients and landlords to obtain signed documents became much more difficult. Staff transitions also contributed to these challenges. The Voucher Manager position—responsible for verifying rent reasonableness and filling open HUD vouchers—was vacated in July 2022 after a brief tenure. Although the role was refilled quickly, the transition resulted in information gaps during lease renewal periods due to the disruption in continuity and knowledge transfer. To help support the growing difficulty of the work, a new position, Housing Administrative Team Lead, was created in November 2022 to have direct responsibility of the Voucher Manager, maintain compliance, and update systems and workflows. More recently, in August 2024, Michigan Ability Partners created an additional position, Sr. Manager of Programs to provide an additional level of review to ensure compliance. To recruit and retain qualified staff, the salaries for these three position have been adequately adjusted. Michigan Ability Partners (MAP) provides outstanding services to the unhoused population of Washtenaw County. Although many staffing disruptions have recently affected some of its operations, MAP is committed to continue to provide exceptional services and maintain a high standard of compliance. Going forward, MAP will continue to work diligently to complete Single Audit Packages in a timely manner

Categories

HUD Housing Programs Material Weakness

Other Findings in this Audit

  • 1153027 2022-002
    Material Weakness Repeat
  • 1153028 2022-003
    Material Weakness Repeat
  • 1153029 2022-002
    Material Weakness Repeat
  • 1153030 2022-003
    Material Weakness Repeat
  • 1153031 2022-002
    Material Weakness Repeat
  • 1153032 2022-003
    Material Weakness Repeat
  • 1153033 2022-002
    Material Weakness Repeat
  • 1153034 2022-003
    Material Weakness Repeat
  • 1153035 2022-002
    Material Weakness Repeat
  • 1153036 2022-003
    Material Weakness Repeat
  • 1153037 2022-002
    Material Weakness Repeat
  • 1153038 2022-003
    Material Weakness Repeat
  • 1153039 2022-002
    Material Weakness Repeat
  • 1153040 2022-003
    Material Weakness Repeat
  • 1153041 2022-002
    Material Weakness Repeat
  • 1153042 2022-003
    Material Weakness Repeat
  • 1153043 2022-002
    Material Weakness Repeat
  • 1153044 2022-003
    Material Weakness Repeat
  • 1153045 2022-002
    Material Weakness Repeat
  • 1153046 2022-003
    Material Weakness Repeat
  • 1153047 2022-002
    Material Weakness Repeat
  • 1153048 2022-003
    Material Weakness Repeat
  • 1153049 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.267 Continuum of Care Program $168,663
64.024 Va Homeless Providers Grant and Per Diem Program $150,137
17.805 Homeless Veterans’ Reintegration Program $125,052
64.003 Education and Training of Health Service Personnel $99,468
14.218 Community Development Block Grants/entitlement Grants $62,749