We audited the Taylor Housing Commission’s Housing Choice Voucher Program based on our analysis of risk factors relating to public housing agencies in Region 5’s jurisdiction (States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin). Our audit objective was to determine whether the Commission complied with the U.S. Department of Housing and Urban Development’s (HUD) and its own requirements regarding the administration of its program. Specifically, we wanted to determine whether the Commission correctly calculated and paid housing assistance and utility allowances.
The Commission did not always comply with HUD’s and its own requirements for its program household files. Specifically, it did not always correctly calculate or maintain documentation to support its calculations of housing assistance payments, and pay housing assistance and utility allowances for its program households. As a result, it (1) overpaid more than $21,000, (2) underpaid nearly $2,000, and (3) was unable to support nearly $21,000 in housing assistance.
We recommend that the Director of HUD’s Detroit Office of Public Housing require the Commission to (1) reimburse its program, the households, or landlords from non-Federal funds for ineligible housing assistance payments and underpayment of housing assistance and utility allowances, as applicable, (2) support or reimburse its program or households for unsupported housing assistance payments, and (3) implement adequate procedures and controls to address the findings cited in this audit report.
Recommendations
Public and Indian Housing
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Status2019-CH-1004-001-AOpenClosed$32,687.00Questioned 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 December 29, 2020Reimburse its program $32,687 from non-Federal funds ($17,045 in overpayments of housing assistance and utility allowances4 $15,642 in administrative fees) due to inappropriate calculations.
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Status2019-CH-1004-001-BOpenClosed$1,276.00Funds 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 February 19, 2021Reimburse the appropriate households $1,276 ($1,211 in housing assistance underpayments $65 in utility allowances) from program funds for the underpayment of housing assistance due to calculation errors and discrepancies in the housing assistance payments register.
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Status2019-CH-1004-001-COpenClosed$7,869.00Questioned 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 08, 2021Support or reimburse the appropriate households $7,869 from non-Federal funds for the unsupported underpayment of housing assistance due to missing documentation for housing assistance payment calculations.
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Status2019-CH-1004-001-DOpenClosed$12,893.00Questioned 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 December 29, 2020Support or reimburse its program $12,893 from non-Federal funds for the unsupported overpayment of housing assistance due to missing documentation for housing assistance payment calculations.
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Status2019-CH-1004-001-EOpenClosed$4,460.00Questioned 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 December 29, 2020Pursue collection from the applicable landlords or reimburse its program $4,460 from non-Federal funds for the overpayment of housing assistance due to discrepancies in the housing assistance payments register.
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Status2019-CH-1004-001-FOpenClosed$450.00Funds 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 December 21, 2020Reimburse the appropriate landlords $450 in housing assistance from program funds for the underpayment of housing assistance due to discrepancies in the housing assistance payments register.
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Status2019-CH-1004-001-GOpenClosedClosed on January 05, 2021
Implement adequate procedures and controls, including but not limited to monitoring and oversight of the program staff, to ensure that (1) utility allowance calculations are adequately supported, (2) income is adequately verified and supported, (3) housing assistance is correctly calculated, and (4) housing assistance payments are appropriately processed in accordance with HUD’s and its own requirements.