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We audited the Port Huron Housing Commission’s public housing program as part of the activities in our fiscal year 2016 annual audit plan.  We selected the Commission based on our analysis of the risk factors relating to public housing agencies in Region 5’s 1 jurisdiction.  Our objective was to determine whether the Commission administered its program in accordance with the U.S. Department of Housing and Urban Development’s (HUD) and its own program requirements.

The Commission did not properly implement asset management.  Specifically, it inappropriately allocated more than $1.4 million in expenses incurred by its central office cost center to its asset management projects.  As a result, HUD and the Commission lacked assurance that the costs allocated to the Commission’s projects were (1) necessary and reasonable and (2) for eligible program-related activities or services received by the projects.

We recommend that the Director of the Detroit Office of Public Housing require the Commission to (1) support that $1.4 million in central office cost center expenses allocated to the public housing program were eligible, necessary, and reasonable program costs and (2) implement adequate procedures and controls to address the issue cited in this report.



Region 5 includes the States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin.