FAC Explorer

Audit 315249

FY End
2023-12-31
Total Expended
$3.67M
Findings
2
Programs
6
Organization: Northwest Regional Housing Authority (AR)
Year: 2023 Accepted: 2024-07-16
Auditor: Smith Marion & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
478658 2023-001 Significant Deficiency - N
1055100 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $3.05M Yes 1
10.420 Rural Self-Help Housing Technical Assistance $221,914 - 0
14.872 Public Housing Capital Fund $193,953 - 0
14.850 Public and Indian Housing $151,911 - 0
14.896 Family Self-Sufficiency Program $42,827 - 0
14.169 Housing Counseling Assistance Program $8,257 - 0

Contacts

Name Title Type
HJKRCEHAW6G4 Neal Gibson Auditee
8707415522 Cole Monroe Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Scope of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the expenditures incurred (and related awards received) by the Northwest Regional Housing Authority (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with, state, local or other nonfederal funds are excluded from the accompanying schedule. Basis of Accounting The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The Schedule was prepared from only the accounts of the grant programs and, therefore, does not present the financial position or results of operations of the Authority. Subrecipients During the fiscal year ended December 31, 2023, the Authority disbursed no Federal funds to subrecipients. De Minimis Rate Used: N Rate Explanation: N/A

Finding Details

Finding 2023-001
The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103)). Additionally, for units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA‐approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family‐caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). During our audit, we identified three (3) failed HQS that did not receive a pass for several months and no rent abetment process was started or enforced during that time period. The HQS population was 135 failed inspection. We selected a sample of 13 inspection and identified of those 13 reviewed 3 did not obtain a re-inspection pass within the Criteria noted above and no rent abetment process was enforce on landlord. The Authority staff did not want to jeopardize the tenants lease by enforcing the rent abatements and rather worked with the landlord over an extend period to resolve the failed inspection issues. The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in operating and financial penalties. We suggest the Authority properly oversee compliance with regulations and enforce rent abatements if necessary to adherence to federal compliance requirements. Management agrees with the finding, see Management's corrective action plan.
Finding 2023-001
The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103)). Additionally, for units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA‐approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family‐caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). During our audit, we identified three (3) failed HQS that did not receive a pass for several months and no rent abetment process was started or enforced during that time period. The HQS population was 135 failed inspection. We selected a sample of 13 inspection and identified of those 13 reviewed 3 did not obtain a re-inspection pass within the Criteria noted above and no rent abetment process was enforce on landlord. The Authority staff did not want to jeopardize the tenants lease by enforcing the rent abatements and rather worked with the landlord over an extend period to resolve the failed inspection issues. The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in operating and financial penalties. We suggest the Authority properly oversee compliance with regulations and enforce rent abatements if necessary to adherence to federal compliance requirements. Management agrees with the finding, see Management's corrective action plan.