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Board suspends housing revenues and claims processing pending audit after fund‑mix concerns
Summary
The administrator reported that a private housing commission operating from county facilities has mixed grant, revolving loan and other funds; the board approved a temporary suspension of housing-related revenues and claims while staff complete an internal audit and prepare an RFP for third‑party administration of CDBG funds.
The Ogemaw County Board of Commissioners voted to temporarily suspend acceptance and processing of housing revenues and related expenditures after the county treasurer and administrator identified inconsistent accounting in a housing program operated by a private entity out of county offices.
Administrator Francine explained auditors discovered line items containing more than one grant and that grant and revolving‑loan funds have been commingled; she said the auditor recommended an internal audit to trace funds and determine correct line‑item allocations. "When you're dealing with grants, they cannot cover operational cost as office supplies, envelopes, copiers," the administrator said when describing why some recent claims were denied.
The resolution directs staff to pause processing while the treasurer and administrator work with the auditor to separate funds, to prepare an RFP for a third‑party administrator for the CDBG grant (approx. $250,000) and to clarify whether the private housing commission should finance its own audit. Commissioners emphasized the value of past housing assistance delivered to residents but supported a careful accounting review before further disbursements.
The board adopted the temporary suspension by roll call and instructed staff to report findings and next steps to the committee and full board.
