We audited the Grand Rapids Housing Commission’s Rental Assistance Demonstration program (RAD) based on the activities included in our 2017 annual audit plan and our analysis of the housing agencies participating in RAD in Region 5’s jurisdiction (States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin). Our audit objective was to determine whether the Commission correctly calculated housing assistance payments for the units converted under the program.
The Commission did not always correctly calculate and pay housing assistance for the units converted under the program. It also did not always maintain documentation to support its calculations of households’ housing assistance payments and program eligibility. As a result, the Commission overpaid nearly $16,000 and underpaid more than $3,000 in housing assistance and utility allowance reimbursements. In addition, it had unsupported housing assistance payments.
We recommend that the Director of the U.S. Department of Housing and Urban Development’s Detroit Office of Public Housing require the Commission to (1) reimburse its program nearly $9,000 from non-Federal funds due to inappropriate calculations, (2) reimburse the appropriate households or projects more than $3,000 for underpayment of housing assistance and utility allowances, (3) support or reimburse the appropriate households for unsupported housing assistance payments, (4) pursue collection from applicable households or projects or reimburse its program nearly $7,000 from non-Federal funds for the overpayment of housing assistance, and (5) implement adequate quality control procedures to ensure that it correctly pays housing assistance.
Recommendations
Public and Indian Housing
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Status2018-CH-1001-001-AOpenClosed$13,605.00Questioned 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 September 06, 2018Reimburse its program $13,605 from non-Federal funds ($8,735 in overpayments of housing assistance and utility allowances $4,870 in administrative fees) due to inappropriate calculations.
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Status2018-CH-1001-001-BOpenClosed$2,663.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on April 01, 2019Reimburse the appropriate households $2,663 from non-Federal funds for the underpayment of housing assistance and utility allowances due to inappropriate calculations.
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Status2018-CH-1001-001-COpenClosed$44.00Questioned 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 March 18, 2019Support or reimburse the appropriate households $44 from non-Federal funds for the unsupported payments of housing assistance cited in this finding.
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Status2018-CH-1001-001-DOpenClosed$1,877.00Questioned 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 May 15, 2019Pursue collection from the applicable households or reimburse its program $1,877 from non-Federal funds for the overpayment of housing assistance due to unreported income.
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Status2018-CH-1001-001-EOpenClosed$5,065.00Questioned 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 September 06, 2018Pursue collection from the applicable projects or reimburse its program $5,065 from non-Federal funds for the overpayment of housing assistance.
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Status2018-CH-1001-001-FOpenClosed$177.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on March 11, 2019Reimburse the appropriate projects $177 from program funds for the underpayment of housing assistance.
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Status2018-CH-1001-001-GOpenClosed$263.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on March 11, 2019Reimburse the appropriate households $263 from program funds for the underpayment of utility allowance reimbursements.
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Status2018-CH-1001-001-HOpenClosedClosed on September 30, 2020
Review the payments for all certifications completed between December 2016 and February 2017 for the remaining Housing Choice Voucher and Project-Based Voucher program participants to ensure that adjustments were appropriately paid.
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Status2018-CH-1001-001-IOpenClosedClosed on March 18, 2019
Implement adequate quality control procedures to ensure that it correctly pays housing assistance.
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Status2018-CH-1001-001-JOpenClosedClosed on March 18, 2019
Ensure that the quality controls over the calculation of housing assistance payments implemented by the Commission are sufficient.