U.S. flag

An official website of the United States government Here’s how you know

The .gov means it’s official.

Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

The site is secure.

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Línea Directa

REPORTAR FRAUDE, DESPERDICIO O ABUSO
Junio 11, 2018
  • Public and Indian Housing
2018-CH-1001
2018-CH-1001.pdf

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
Recommendation Status Date Issued Summary
2018-CH-1001-001-A Cerrado Junio 11, 2018 Reimburse 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.
2018-CH-1001-001-B Cerrado Junio 11, 2018 Reimburse the appropriate households $2,663 from non-Federal funds for the underpayment of housing assistance and utility allowances due to inappropriate calculations.
2018-CH-1001-001-C Cerrado Junio 11, 2018 Support or reimburse the appropriate households $44 from non-Federal funds for the unsupported payments of housing assistance cited in this finding.
2018-CH-1001-001-D Cerrado Junio 11, 2018 Pursue 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.
2018-CH-1001-001-E Cerrado Junio 11, 2018 Pursue collection from the applicable projects or reimburse its program $5,065 from non-Federal funds for the overpayment of housing assistance.
2018-CH-1001-001-F Cerrado Junio 11, 2018 Reimburse the appropriate projects $177 from program funds for the underpayment of housing assistance.
2018-CH-1001-001-G Cerrado Junio 11, 2018 Reimburse the appropriate households $263 from program funds for the underpayment of utility allowance reimbursements.
2018-CH-1001-001-H Cerrado Junio 11, 2018 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.
2018-CH-1001-001-I Cerrado Junio 11, 2018 Implement adequate quality control procedures to ensure that it correctly pays housing assistance.
2018-CH-1001-001-J Cerrado Junio 11, 2018 Ensure that the quality controls over the calculation of housing assistance payments implemented by the Commission are sufficient.