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Audit delayed after audit firm flags problems at Flint Housing Commission; council seeks documents
Summary
Council members were told the city audit will be later than March because the Flint Housing Commission's incomplete and error-filled audit — and allegations of diverted funds — are obstructing external review; councilmembers asked for FOIA records and legal clarity about a reported repayment plan.
Madame Chair opened a special 15‑minute audit update, saying auditors who had tentatively promised a March completion now expect a later date because the Flint Housing Commission has not completed its audit.
Councilmember Priestley said the housing commission’s audit showed apparent diversion of funds initially reported as $9,000 and later described at council as rising to about $41,000. “They gave a letter to ask Mayor Neely to remove her,” Priestley said, and said the person in question “is still showing up to meetings even though she was removed.” Priestley told colleagues she had obtained documents through public records and asked the city attorney to clarify whether the mayor had authority to accept a $50‑per‑month repayment plan for allegedly diverted federal funds.
City administrator Mr. Moore told the council staff has been working with the housing commission to help them find an auditor; he said turnover and the need to correct a previously poor audit are delaying completion. “We are hoping that will get that resolved shortly,” Moore said.
Several councilmembers urged that documents be obtained and shared with the full body so members can make informed decisions. One councilmember noted that auditors reviewing the housing commission’s materials found spreadsheet errors and other problems that required cleanup before a new audit can be completed.
The chair closed the update after members agreed the immediate priority is getting a qualified auditor engaged for the housing commission and collecting the underlying records. Councilmembers said they would pursue public‑records requests so members could review the evidence and asked the city attorney for legal guidance on any executive authority involved in repayment arrangements.
The meeting adjourned after the update; members warned the housing commission’s audit delay could continue to hold up related city audits and projects until the commission’s financial records are reconciled.
