Finding 524726 (2024-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-02-27
Audit: 344146
Organization: Detroit Housing Commission (MI)

AI Summary

  • Core Issue: The Commission failed to submit required financial and performance reports on time for the Public Housing Capital Fund Program.
  • Impacted Requirements: Reports HUD-53001 and HUD-50075.1 were not submitted within the 90-day deadline after expenditures.
  • Recommended Follow-up: Implement procedures to ensure timely report submissions, including monthly reconciliations and tracking of key reporting dates.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name - 14.872 - Public Housing Capital Fund Program 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 905.324, Data Reporting Requirements, the Commission must submit the following: For modernization projects, the Commission shall submit form HUD-53001, Actual Modernization Cost Certificate, within 90 days after the expenditure end date. The Commission shall submit form HUD-50075.1, Annual Statement Performance and Evaluation Report, within 90 days of the expenditure end date. Condition - The Commission did not submit the required financial report and performance report. Questioned Costs - Not applicable Context - The required financial reporting (HUD-53001) and performance report (HUD-50075.1) for grant number MI28P001501-17 were not completed within 90 days of the expenditure end date. Cause and Effect - The Commission did not have the proper controls in place to ensure the timely completion and submission of required reports. Recommendation - The Commission should establish procedures to ensure financial reporting is filed and completed timely. Views of Responsible Officials and Corrective Action Plan - The capital team project manager will reconcile HUD’s EPIC and ELOCCs system with Yardi monthly to ensure the timely filing of capital projects close out. This tracking critical spreadsheet created by the lead performance officer will trigger key reporting dates for the DHC Capital Fund Program to remain in compliance with HUD reporting deadlines. At a minimum, this critical spreadsheet is distributed monthly to the supervisor of capital and the lead performance officer to ensure compliance.

Corrective Action Plan

Condition: The Commission did not submit the required financial report and performance report timely. Planned Corrective Action: The Capital Team Project Manager will reconcile HUD’s EPIC and ELOCCs system with Yardi monthly to ensure the timely filing of capital projects close out. This tracking critical spreadsheet created by the Lead Performance Officer, will trigger key reporting dates for the DHC Capital Fund Program to remain in compliance with HUD reporting deadlines. At a minimum, monthly, this critical spreadsheet is distributed to the Supervisor of Capital and the Lead Performance Officer to ensure compliance. Contact person responsible for corrective action: Michael Edwards, Capital asset & Skilled Trades Supervisor Anticipated Completion Date: 6/30/2025

Categories

HUD Housing Programs Material Weakness Reporting

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
  • 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
  • 1101164 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