We audited Travelers Aid Society of Metropolitan Detroit’s Continuum of Care program. The audit was part of the activities in our fiscal year 2017 annual audit plan. We selected Travelers Aid’s program based on a request from the Director of the U.S. Department of Housing and Urban Development’s (HUD) Detroit Office of Community Planning and Development and the results of HUD’s monitoring review of one of Travelers Aid’s fiscal year 2014 program grants. Our objective was to determine whether Travelers Aid administered its program in accordance with Federal regulations.
Travelers Aid did not always administer its program in accordance with Federal regulations. Specifically, it did not maintain sufficient documentation to support that (1) it met its matching contribution requirement for program-funded projects, (2) program administrative funds were used for eligible administrative expenses associated with the project for which the funds were drawn, (3) program income was used for the project that generated it and for eligible activities, and (4) program funds were used for eligible project expenses for supportive services and leasing. As a result, Travelers Aid is at risk of having to repay HUD more than $2.1 million due to a lack of sufficient documentation to support that it complied with Federal regulations regarding match contributions. In addition, HUD and Travelers Aid lacked assurance that Travelers Aid used nearly $171,000 in program income appropriately.
We recommend that the Director of HUD’s Detroit Office of Community Planning and Development require Travelers Aid to (1) support that it met its matching contribution requirement associated with the more than $2.1 million in program funds it drew down for supportive services and administrative expenses or reimburse HUD from non-Federal funds as appropriate; (2) support or reimburse HUD from non-Federal funds for the nearly $171,000 in program income for which it did not provide sufficient documentation to support that the funds were used for the project that generated the income and for eligible activities; and (3) implement adequate procedures and controls to address the finding cited in this audit report.
Recommendations
Community Planning and Development
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Status2017-CH-1008-001-AOpenClosed$1,776,381.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on Agosto 30, 2018Support that it met its $526,170 matching contribution requirement associated with the more than $2.1 million in program funds it drew down for supportive services and administrative expenses. If Travelers Aid cannot provide sufficient support, it should reimburse HUD $1,776,381 from non-Federal funds.
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Status2017-CH-1008-001-BOpenClosed$305,936.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on Octubre 30, 2018Support or reimburse HUD from non-Federal funds for the $305,936 in program administrative funds for which it did not provide sufficient documentation to support that the funds were used for eligible administrative expenses associated with the project for which the funds were drawn.
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Status2017-CH-1008-001-COpenClosed$170,995.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on Octubre 30, 2018Support or reimburse HUD from non-Federal funds for the $170,995 in program income for which it did not provide sufficient documentation to support that the funds were used for the project that generated the income ($147,534) and for eligible activities ($23,461).
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Status2017-CH-1008-001-DOpenClosed$54,770.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on Octubre 30, 2018Support or reimburse HUD from non-Federal funds for the $54,770 in program funds for which it did not provide sufficient documentation to support that the funds were used for eligible project expenses for supportive services ($26,036) and leasing ($28,734).
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Status2017-CH-1008-001-EOpenClosed$1,165.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on Junio 13, 2018Reimburse HUD from non-Federal funds for the $1,165 in program funds used for improper supportive service expenses.
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Status2017-CH-1008-001-FOpenClosedClosed on Junio 13, 2018
Implement adequate procedures and controls to ensure that it maintains sufficient documentation to support that matching contributions, program funds, and program income are accounted for and used in accordance with Federal regulations and it uses program funds for the projects in accordance with Federal regulations.
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Status2017-CH-1008-001-GOpenClosedClosed on Junio 04, 2018
Provide technical assistance to Travelers Aid to ensure that its staff is adequately trained on how to account for and use matching contributions, program funds, and program income in accordance with Federal regulations.