Finding 1170657 (2025-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-01-26
Audit: 383877
Organization: Detroit Housing Commission (MI)

AI Summary

  • Core Issue: The Commission failed to complete required tenant recertifications for fiscal year 2025, leading to significant deficiencies and questioned costs of $2,247.
  • Impacted Requirements: Compliance with HUD regulations mandates annual reexamination of family income and composition, which was not adhered to.
  • Recommended Follow-Up: Implement robust procedures for timely documentation and completion of participant recertifications, with ongoing monitoring and staff training to ensure compliance.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name - 14.871 and 14.879, U.S. Department of Housing and Urban Development, Housing Vouchers Cluster Federal Award Identification Number and Year - Not applicable Pass-through Entity - Not applicable Finding Type - Significant deficiency Repeat Finding - Yes 2024-003 Criteria - Under 24 CFR 5.230, 5.609, 982.201, 982.515, 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 thirdparty verification. Condition - The Commission did not complete fiscal year 2025 recertifications. Questioned Costs - $2,247 Identification of How Questioned Costs Were Computed - Questioned costs represents overpayments identified from testing performed. Context - A total of 40 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 as the housing assistance payment calculation was not performed for the tenants. Recommendation - The Commission should establish procedures to ensure participant recertifications are documented and completed timely. Views of Responsible Officials and Planned Corrective Actions - Staff have been retrained on the compliance requirements under the standards of the HCV Program through the oversight of the Rental Assistance Department Manager and Continued Occupancy Supervisor. The Department Manager and Supervisor continue to utilize all Yardi monitoring reports to ensure the Department is operating in accordance with industry standards. Reporting is be done and monitored monthly to meet set goals. Weekly, Department Manager has review the certification pipeline to ensure compliance and follow up with the Housing Specialist to ensure compliance and meeting set weekly and monthly goals and metrics. We continue to work in accordance with HUD rules and regulations where Annual Recertification processes are concerned. Per HUD communication provided to us, as of June 30, 2025, HCV is 100% compliant with HUD recertification requirements.

Corrective Action Plan

Condition: The Commission did not complete fiscal year 2025 recertifications. Planned Corrective Action: Staff have been retrained on the compliance requirements under the standards of the HCV Program through the oversight of the Rental Assistance Department Manager and Continued Occupancy Supervisor. The Department Manager and Supervisor continue to utilize all Yardi monitoring reports to ensure the Department is operating in accordance with industry standards. Reporting is be done and monitored monthly to meet set goals. Weekly, Department Manager has review the certification pipeline to ensure compliance and follow up with the Housing Specialist to ensure compliance and meeting set weekly and monthly goals and metrics. We continue to work in accordance with HUD rules and regulations where Annual Recertification processes are concerned. Per HUD communication provided to us, as of June 30, 2025, HCV is 100% compliant with HUD recertification requirements. Contact person responsible for corrective action: Felicia Burris, HCV Program Manager Anticipated Completion Date: 7/1/2025

Categories

Subrecipient Monitoring HUD Housing Programs Reporting Significant Deficiency

Other Findings in this Audit

  • 1170652 2025-001
    Material Weakness Repeat
  • 1170653 2025-001
    Material Weakness Repeat
  • 1170654 2025-001
    Material Weakness Repeat
  • 1170655 2025-002
    Material Weakness Repeat
  • 1170656 2025-002
    Material Weakness Repeat
  • 1170658 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $53.18M
14.850 PUBLIC HOUSING OPERATING FUND $18.07M
14.872 PUBLIC HOUSING CAPITAL FUND $14.03M
14.871 COVID-19 - SECTION 8 HOUSING CHOICE VOUCHERS $1.30M
14.879 MAINSTREAM VOUCHERS $933,818
17.274 YOUTHBUILD $884,222
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $500,000
14.895 JOBS-PLUS PILOT INITIATIVE $421,753
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $368,855
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $20,170