Finding 45507 (2022-001)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-02-08
Audit: 45566
Organization: Detroit Housing Commission (MI)

AI Summary

  • Core Issue: The Commission failed to complete annual tenant recertifications for fiscal year 2022, impacting compliance with federal regulations.
  • Impacted Requirements: Key criteria include verifying income eligibility, documenting third-party income verification, and adjusting tenant rent based on accurate income assessments.
  • Recommended Follow-Up: Implement procedures for annual recertifications and retrain staff on compliance, with regular monitoring and reporting to ensure adherence to HUD standards.

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 Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income based rent. c. Determine income eligibility and calculate the tenant?s rent payment using the documentation from third party verification. d. Select tenants from the HCVP waiting list (see special tests and provisions HCVP waiting list). e. 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 2022 recertification. Questioned Costs Unknown Identification of How Questioned Costs Were Computed Not applicable Context 40 tenant files were tested, and the results are as follows: A total of 5 participant files did not include fiscal year 2022 recertifications due to delays with tenants due to the pandemic. Cause and Effect The Commission did not have the proper controls in place to ensure that the tenant recertifications are completed annually for each tenant. Due to the lack of adequate controls, recertifications were not performed and housing assistance payments could be incorrect. Recommendation The Commission should establish procedures to ensure participant recertifications are documented and completed annually. Views of Responsible Officials and Corrective Action Plan Staff will be 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 will continue to utilize all Yardi monitoring reports to ensure the department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where annual recertification processes are concerned. The department manager will review the certification pipeline weekly to ensure compliance and follow up with the housing specialist to ensure compliance and meeting set weekly and monthly goals and metrics.

Categories

HUD Housing Programs Subrecipient Monitoring Eligibility Material Weakness Reporting Special Tests & Provisions

Other Findings in this Audit

  • 45502 2022-004
    Significant Deficiency
  • 45503 2022-004
    Significant Deficiency
  • 45504 2022-001
    Material Weakness
  • 45505 2022-002
    Material Weakness
  • 45506 2022-003
    Material Weakness
  • 45508 2022-002
    Material Weakness
  • 45509 2022-003
    Material Weakness
  • 45510 2022-001
    Material Weakness
  • 45511 2022-002
    Material Weakness
  • 45512 2022-003
    Material Weakness
  • 621944 2022-004
    Significant Deficiency
  • 621945 2022-004
    Significant Deficiency
  • 621946 2022-001
    Material Weakness
  • 621947 2022-002
    Material Weakness
  • 621948 2022-003
    Material Weakness
  • 621949 2022-001
    Material Weakness
  • 621950 2022-002
    Material Weakness
  • 621951 2022-003
    Material Weakness
  • 621952 2022-001
    Material Weakness
  • 621953 2022-002
    Material Weakness
  • 621954 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $39.94M
14.850 Public and Indian Housing $17.60M
14.872 Public Housing Capital Fund $10.09M
14.871 Covid-19 Housing Choice Vouchers $612,989
14.879 Mainstream Vouchers $383,880
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $378,630
14.850 Covid-19 Public and Indian Housing $349,028
14.870 Resident Opportunity and Supportive Services - Service Coordinators $187,423
14.896 Family Self-Sufficiency Program $130,377
14.895 Jobs-Plus Pilot Initiative $70,120