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Document

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

Key Details
(mouse over or click items for details)
  Open
  Closed
Funds Put to Better Use
Funds 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.

Questioned Costs
Questioned 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.

Sensitive
Sensitive

Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.

Priority
Priority

We believe these open recommendations, if implemented, will have the greatest impact on helping HUD achieve its mission to create strong, sustainable, inclusive communities and quality affordable homes for all.

Community Planning and Development

  •   2017-CH-1008-001-A
    $1,776,381.00

    Closed on August 30, 2018

    Support 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.

  •   2017-CH-1008-001-B
    $305,936.00

    Closed on October 30, 2018

    Support 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.

  •   2017-CH-1008-001-C
    $170,995.00

    Closed on October 30, 2018

    Support 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).

  •   2017-CH-1008-001-D
    $54,770.00

    Closed on October 30, 2018

    Support 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).

  •   2017-CH-1008-001-E
    $1,165.00

    Closed on June 13, 2018

    Reimburse HUD from non-Federal funds for the $1,165 in program funds used for improper supportive service expenses.

  •   2017-CH-1008-001-F

    Closed on June 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.

  •   2017-CH-1008-001-G

    Closed on June 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.