Audit 335354

FY End
2023-12-31
Total Expended
$4.42M
Findings
12
Programs
5
Year: 2023 Accepted: 2024-12-31

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
517386 2023-003 Material Weakness - L
517387 2023-003 Material Weakness - L
517388 2023-003 Material Weakness - L
517389 2023-004 - - E
517390 2023-004 - - E
517391 2023-004 - - E
1093828 2023-003 Material Weakness - L
1093829 2023-003 Material Weakness - L
1093830 2023-003 Material Weakness - L
1093831 2023-004 - - E
1093832 2023-004 - - E
1093833 2023-004 - - E

Programs

ALN Program Spent Major Findings
14.879 Mainstream Vouchers $869,770 Yes 2
14.239 Home Investment Partnerships Program $284,610 - 0
14.871 Section 8 Housing Choice Vouchers $152,890 Yes 2
10.427 Rural Rental Assistance Payments $102,420 - 0
10.415 Rural Rental Housing Loans $16,833 - 0

Contacts

Name Title Type
NEPJVGASF8L1 Nancy Nash-Mendez Auditee
5094223721 Steven Judd Auditor
No contacts on file

Notes to SEFA

Title: NOTE 2 – PROGRAM COSTS Accounting Policies: NOTE 1 – BASIS OF ACCOUNTING The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as HAOC’s financial statements. HAOC conforms to generally accepted accounting principles. De Minimis Rate Used: N Rate Explanation: DE MINIMIS COST RATE - The HAOC has elected not to use the de minimis cost rate. The amounts shown as federal expenditures for the Supportive Housing for Persons with Disabilities (5-Year Main Stream) Program (ALN 14.879) represents grant portions of the program costs. Entire program costs, including HAOC’s portion, totaled $860,941 for the year ended December 31, 2023. Amounts shown as federal expenditures for the Washington State (Department of Commerce) HOME Tenant Based Rental Assistance (TBRA) Program (ALN 14.239) represent grant portions of the program costs. Entire program costs, including HAOC’s portion, totaled $284,610 for the year ended December 31, 2023. The amounts shown as federal expenditures for the USDA Rural Development programs represent grant portions of the program costs for the Twisp Gardens Apartments, Elmwood Apartments, Peachtree Apartments, and Omak Pioneer Gardens (ALN 10.415 and 10.427). Included are outstanding loan balance at year-end, annual interest subsidy per USDA RD loan agreement, and rental assistance payments. Entire program costs, including HAOC’s portion, totaled $340,167 for the year ended December 31, 2023. The balance outstanding on the loans at December 31, 2023 were as follows: Twisp Gardens USDA Loan 56-024-91 169473-010 $ 160,197 Peachtree Apartments USDA Loan 56-024-78 6869895-02-4 522,484 Elmwood Apartments USDA Loan 56-024-78 6869895-03-6 534,033 Omak Pioneer Gardens USDA Loan 56-024-78 6869895-48 89,757

Finding Details

2023-003 Late Federal Audit Clearinghouse and HUD REAC Submissions Federal Award: U.S. Department of Housing and Urban Development (HUD) – Housing Choice Voucher Cluster (ALN 14.871/14.879) Finding: The Authority did not file its annual 2022 or 2023 Single Audit and Data Collection forms, or its Financial Data Schedule timely and prior to the deadlines. Repeat Finding: No. Criteria: The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse (FAC) 30 days after receipt of the auditor’s report, or 9 months after the end of the fiscal year, whichever comes first. In addition, Public Housing Authorities are required to submit audited data to HUD’s REAC system no later than nine months after the end of their fiscal year. Sample Size and Population: Sampling was not applicable to this finding. Condition and context: During the audit we noted that the 2022 Single Audit Reporting Package and Data Collection Form was submitted to the FAC on November 8, 2023, and the 2023 Single Audit Reporting Package and Data Collection Form are expected to be submitted to the FAC during December 2024. Additionally, the 2022 HUD-REAC audited financial data schedules were not submitted until October 2023, and the 2023 HUD-REAC audited financial data schedules are expected to be submitted in December 2024. Cause: The Authority was still working on the year-end accounting and preparing complete draft financial statements more than eight months after both their fiscal years ended December 31, 2023 and 2022, which delayed the audit and resulted in late submissions of both the Single Audit and Data Collection Forms and the audited financial data schedules in both years. Effect: Noncompliance with HUD and the Uniform Guidance could reduce access to future funding from Federal sources. Recommendation: We recommend in the future that the Authority implement procedures and ensure staffing is adequate such that they can complete their accounting period close and draft financial statements within 4-5 months of their yearend. This will allow sufficient time for the audit to be completed and for all audit reports to be submitted timely. Questioned Costs: None Management Response: Management agrees with the finding and has prepared a response which is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Nancy Nash Mendez, Executive Director
2023-003 Late Federal Audit Clearinghouse and HUD REAC Submissions Federal Award: U.S. Department of Housing and Urban Development (HUD) – Housing Choice Voucher Cluster (ALN 14.871/14.879) Finding: The Authority did not file its annual 2022 or 2023 Single Audit and Data Collection forms, or its Financial Data Schedule timely and prior to the deadlines. Repeat Finding: No. Criteria: The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse (FAC) 30 days after receipt of the auditor’s report, or 9 months after the end of the fiscal year, whichever comes first. In addition, Public Housing Authorities are required to submit audited data to HUD’s REAC system no later than nine months after the end of their fiscal year. Sample Size and Population: Sampling was not applicable to this finding. Condition and context: During the audit we noted that the 2022 Single Audit Reporting Package and Data Collection Form was submitted to the FAC on November 8, 2023, and the 2023 Single Audit Reporting Package and Data Collection Form are expected to be submitted to the FAC during December 2024. Additionally, the 2022 HUD-REAC audited financial data schedules were not submitted until October 2023, and the 2023 HUD-REAC audited financial data schedules are expected to be submitted in December 2024. Cause: The Authority was still working on the year-end accounting and preparing complete draft financial statements more than eight months after both their fiscal years ended December 31, 2023 and 2022, which delayed the audit and resulted in late submissions of both the Single Audit and Data Collection Forms and the audited financial data schedules in both years. Effect: Noncompliance with HUD and the Uniform Guidance could reduce access to future funding from Federal sources. Recommendation: We recommend in the future that the Authority implement procedures and ensure staffing is adequate such that they can complete their accounting period close and draft financial statements within 4-5 months of their yearend. This will allow sufficient time for the audit to be completed and for all audit reports to be submitted timely. Questioned Costs: None Management Response: Management agrees with the finding and has prepared a response which is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Nancy Nash Mendez, Executive Director
2023-003 Late Federal Audit Clearinghouse and HUD REAC Submissions Federal Award: U.S. Department of Housing and Urban Development (HUD) – Housing Choice Voucher Cluster (ALN 14.871/14.879) Finding: The Authority did not file its annual 2022 or 2023 Single Audit and Data Collection forms, or its Financial Data Schedule timely and prior to the deadlines. Repeat Finding: No. Criteria: The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse (FAC) 30 days after receipt of the auditor’s report, or 9 months after the end of the fiscal year, whichever comes first. In addition, Public Housing Authorities are required to submit audited data to HUD’s REAC system no later than nine months after the end of their fiscal year. Sample Size and Population: Sampling was not applicable to this finding. Condition and context: During the audit we noted that the 2022 Single Audit Reporting Package and Data Collection Form was submitted to the FAC on November 8, 2023, and the 2023 Single Audit Reporting Package and Data Collection Form are expected to be submitted to the FAC during December 2024. Additionally, the 2022 HUD-REAC audited financial data schedules were not submitted until October 2023, and the 2023 HUD-REAC audited financial data schedules are expected to be submitted in December 2024. Cause: The Authority was still working on the year-end accounting and preparing complete draft financial statements more than eight months after both their fiscal years ended December 31, 2023 and 2022, which delayed the audit and resulted in late submissions of both the Single Audit and Data Collection Forms and the audited financial data schedules in both years. Effect: Noncompliance with HUD and the Uniform Guidance could reduce access to future funding from Federal sources. Recommendation: We recommend in the future that the Authority implement procedures and ensure staffing is adequate such that they can complete their accounting period close and draft financial statements within 4-5 months of their yearend. This will allow sufficient time for the audit to be completed and for all audit reports to be submitted timely. Questioned Costs: None Management Response: Management agrees with the finding and has prepared a response which is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Nancy Nash Mendez, Executive Director
2023-004 Tenant File Documentation Federal Award: U.S. Department of Housing and Urban Development (HUD) – Housing Choice Voucher Cluster (ALN 14.871/14.879) Finding: The Authority’s tenant files did not fully comply with HUD documentation requirements. Repeat Finding: No. Criteria: HUD has established various compliance requirements related to the use of Federal funds. These compliance requirements impact many areas of HUD compliance and reporting such as, but not limited to, tenant certifications and recertification procedures, tenant income eligibility, document retention requirements and documentation within tenant files. Sample Size and Population: Population of the program is 308 tenants of which 25 tenant files were selected for testing Condition and context: The following instances of noncompliance with specific HUD compliance requirements are noted as follows: • Two tenant files selected for testing - documentation of the Enterprise Income Verification (EIV) system reports utilized during the tenant application process was not maintained in the tenant file or signed appropriately. • One tenant file selected for testing – the utility allowance did not agree to the HUD-52580 • Two tenant files selected for testing did not have complete supporting documentation regarding compliance with waitlist procedures. Cause: The Authority was still working on the year-end accounting and preparing complete draft financial statements more than eight months after both their fiscal years ended December 31, 2023 and 2022, which delayed the audit and resulted in late submissions of both the Single Audit and Data Collection Forms and the audited financial data schedules in both years. Effect: Tenant files did not contain complete, accurate or appropriate documentation required by HUD. Recommendation: The specific documentation required by HUD should be maintained in the tenant files and the tenant files should be reviewed periodically for completeness. Questioned Costs: None Management Response: Management agrees with the finding and has prepared a response which is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Nancy Nash Mendez, Executive Director
2023-004 Tenant File Documentation Federal Award: U.S. Department of Housing and Urban Development (HUD) – Housing Choice Voucher Cluster (ALN 14.871/14.879) Finding: The Authority’s tenant files did not fully comply with HUD documentation requirements. Repeat Finding: No. Criteria: HUD has established various compliance requirements related to the use of Federal funds. These compliance requirements impact many areas of HUD compliance and reporting such as, but not limited to, tenant certifications and recertification procedures, tenant income eligibility, document retention requirements and documentation within tenant files. Sample Size and Population: Population of the program is 308 tenants of which 25 tenant files were selected for testing Condition and context: The following instances of noncompliance with specific HUD compliance requirements are noted as follows: • Two tenant files selected for testing - documentation of the Enterprise Income Verification (EIV) system reports utilized during the tenant application process was not maintained in the tenant file or signed appropriately. • One tenant file selected for testing – the utility allowance did not agree to the HUD-52580 • Two tenant files selected for testing did not have complete supporting documentation regarding compliance with waitlist procedures. Cause: The Authority was still working on the year-end accounting and preparing complete draft financial statements more than eight months after both their fiscal years ended December 31, 2023 and 2022, which delayed the audit and resulted in late submissions of both the Single Audit and Data Collection Forms and the audited financial data schedules in both years. Effect: Tenant files did not contain complete, accurate or appropriate documentation required by HUD. Recommendation: The specific documentation required by HUD should be maintained in the tenant files and the tenant files should be reviewed periodically for completeness. Questioned Costs: None Management Response: Management agrees with the finding and has prepared a response which is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Nancy Nash Mendez, Executive Director
2023-004 Tenant File Documentation Federal Award: U.S. Department of Housing and Urban Development (HUD) – Housing Choice Voucher Cluster (ALN 14.871/14.879) Finding: The Authority’s tenant files did not fully comply with HUD documentation requirements. Repeat Finding: No. Criteria: HUD has established various compliance requirements related to the use of Federal funds. These compliance requirements impact many areas of HUD compliance and reporting such as, but not limited to, tenant certifications and recertification procedures, tenant income eligibility, document retention requirements and documentation within tenant files. Sample Size and Population: Population of the program is 308 tenants of which 25 tenant files were selected for testing Condition and context: The following instances of noncompliance with specific HUD compliance requirements are noted as follows: • Two tenant files selected for testing - documentation of the Enterprise Income Verification (EIV) system reports utilized during the tenant application process was not maintained in the tenant file or signed appropriately. • One tenant file selected for testing – the utility allowance did not agree to the HUD-52580 • Two tenant files selected for testing did not have complete supporting documentation regarding compliance with waitlist procedures. Cause: The Authority was still working on the year-end accounting and preparing complete draft financial statements more than eight months after both their fiscal years ended December 31, 2023 and 2022, which delayed the audit and resulted in late submissions of both the Single Audit and Data Collection Forms and the audited financial data schedules in both years. Effect: Tenant files did not contain complete, accurate or appropriate documentation required by HUD. Recommendation: The specific documentation required by HUD should be maintained in the tenant files and the tenant files should be reviewed periodically for completeness. Questioned Costs: None Management Response: Management agrees with the finding and has prepared a response which is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Nancy Nash Mendez, Executive Director
2023-003 Late Federal Audit Clearinghouse and HUD REAC Submissions Federal Award: U.S. Department of Housing and Urban Development (HUD) – Housing Choice Voucher Cluster (ALN 14.871/14.879) Finding: The Authority did not file its annual 2022 or 2023 Single Audit and Data Collection forms, or its Financial Data Schedule timely and prior to the deadlines. Repeat Finding: No. Criteria: The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse (FAC) 30 days after receipt of the auditor’s report, or 9 months after the end of the fiscal year, whichever comes first. In addition, Public Housing Authorities are required to submit audited data to HUD’s REAC system no later than nine months after the end of their fiscal year. Sample Size and Population: Sampling was not applicable to this finding. Condition and context: During the audit we noted that the 2022 Single Audit Reporting Package and Data Collection Form was submitted to the FAC on November 8, 2023, and the 2023 Single Audit Reporting Package and Data Collection Form are expected to be submitted to the FAC during December 2024. Additionally, the 2022 HUD-REAC audited financial data schedules were not submitted until October 2023, and the 2023 HUD-REAC audited financial data schedules are expected to be submitted in December 2024. Cause: The Authority was still working on the year-end accounting and preparing complete draft financial statements more than eight months after both their fiscal years ended December 31, 2023 and 2022, which delayed the audit and resulted in late submissions of both the Single Audit and Data Collection Forms and the audited financial data schedules in both years. Effect: Noncompliance with HUD and the Uniform Guidance could reduce access to future funding from Federal sources. Recommendation: We recommend in the future that the Authority implement procedures and ensure staffing is adequate such that they can complete their accounting period close and draft financial statements within 4-5 months of their yearend. This will allow sufficient time for the audit to be completed and for all audit reports to be submitted timely. Questioned Costs: None Management Response: Management agrees with the finding and has prepared a response which is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Nancy Nash Mendez, Executive Director
2023-003 Late Federal Audit Clearinghouse and HUD REAC Submissions Federal Award: U.S. Department of Housing and Urban Development (HUD) – Housing Choice Voucher Cluster (ALN 14.871/14.879) Finding: The Authority did not file its annual 2022 or 2023 Single Audit and Data Collection forms, or its Financial Data Schedule timely and prior to the deadlines. Repeat Finding: No. Criteria: The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse (FAC) 30 days after receipt of the auditor’s report, or 9 months after the end of the fiscal year, whichever comes first. In addition, Public Housing Authorities are required to submit audited data to HUD’s REAC system no later than nine months after the end of their fiscal year. Sample Size and Population: Sampling was not applicable to this finding. Condition and context: During the audit we noted that the 2022 Single Audit Reporting Package and Data Collection Form was submitted to the FAC on November 8, 2023, and the 2023 Single Audit Reporting Package and Data Collection Form are expected to be submitted to the FAC during December 2024. Additionally, the 2022 HUD-REAC audited financial data schedules were not submitted until October 2023, and the 2023 HUD-REAC audited financial data schedules are expected to be submitted in December 2024. Cause: The Authority was still working on the year-end accounting and preparing complete draft financial statements more than eight months after both their fiscal years ended December 31, 2023 and 2022, which delayed the audit and resulted in late submissions of both the Single Audit and Data Collection Forms and the audited financial data schedules in both years. Effect: Noncompliance with HUD and the Uniform Guidance could reduce access to future funding from Federal sources. Recommendation: We recommend in the future that the Authority implement procedures and ensure staffing is adequate such that they can complete their accounting period close and draft financial statements within 4-5 months of their yearend. This will allow sufficient time for the audit to be completed and for all audit reports to be submitted timely. Questioned Costs: None Management Response: Management agrees with the finding and has prepared a response which is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Nancy Nash Mendez, Executive Director
2023-003 Late Federal Audit Clearinghouse and HUD REAC Submissions Federal Award: U.S. Department of Housing and Urban Development (HUD) – Housing Choice Voucher Cluster (ALN 14.871/14.879) Finding: The Authority did not file its annual 2022 or 2023 Single Audit and Data Collection forms, or its Financial Data Schedule timely and prior to the deadlines. Repeat Finding: No. Criteria: The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse (FAC) 30 days after receipt of the auditor’s report, or 9 months after the end of the fiscal year, whichever comes first. In addition, Public Housing Authorities are required to submit audited data to HUD’s REAC system no later than nine months after the end of their fiscal year. Sample Size and Population: Sampling was not applicable to this finding. Condition and context: During the audit we noted that the 2022 Single Audit Reporting Package and Data Collection Form was submitted to the FAC on November 8, 2023, and the 2023 Single Audit Reporting Package and Data Collection Form are expected to be submitted to the FAC during December 2024. Additionally, the 2022 HUD-REAC audited financial data schedules were not submitted until October 2023, and the 2023 HUD-REAC audited financial data schedules are expected to be submitted in December 2024. Cause: The Authority was still working on the year-end accounting and preparing complete draft financial statements more than eight months after both their fiscal years ended December 31, 2023 and 2022, which delayed the audit and resulted in late submissions of both the Single Audit and Data Collection Forms and the audited financial data schedules in both years. Effect: Noncompliance with HUD and the Uniform Guidance could reduce access to future funding from Federal sources. Recommendation: We recommend in the future that the Authority implement procedures and ensure staffing is adequate such that they can complete their accounting period close and draft financial statements within 4-5 months of their yearend. This will allow sufficient time for the audit to be completed and for all audit reports to be submitted timely. Questioned Costs: None Management Response: Management agrees with the finding and has prepared a response which is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Nancy Nash Mendez, Executive Director
2023-004 Tenant File Documentation Federal Award: U.S. Department of Housing and Urban Development (HUD) – Housing Choice Voucher Cluster (ALN 14.871/14.879) Finding: The Authority’s tenant files did not fully comply with HUD documentation requirements. Repeat Finding: No. Criteria: HUD has established various compliance requirements related to the use of Federal funds. These compliance requirements impact many areas of HUD compliance and reporting such as, but not limited to, tenant certifications and recertification procedures, tenant income eligibility, document retention requirements and documentation within tenant files. Sample Size and Population: Population of the program is 308 tenants of which 25 tenant files were selected for testing Condition and context: The following instances of noncompliance with specific HUD compliance requirements are noted as follows: • Two tenant files selected for testing - documentation of the Enterprise Income Verification (EIV) system reports utilized during the tenant application process was not maintained in the tenant file or signed appropriately. • One tenant file selected for testing – the utility allowance did not agree to the HUD-52580 • Two tenant files selected for testing did not have complete supporting documentation regarding compliance with waitlist procedures. Cause: The Authority was still working on the year-end accounting and preparing complete draft financial statements more than eight months after both their fiscal years ended December 31, 2023 and 2022, which delayed the audit and resulted in late submissions of both the Single Audit and Data Collection Forms and the audited financial data schedules in both years. Effect: Tenant files did not contain complete, accurate or appropriate documentation required by HUD. Recommendation: The specific documentation required by HUD should be maintained in the tenant files and the tenant files should be reviewed periodically for completeness. Questioned Costs: None Management Response: Management agrees with the finding and has prepared a response which is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Nancy Nash Mendez, Executive Director
2023-004 Tenant File Documentation Federal Award: U.S. Department of Housing and Urban Development (HUD) – Housing Choice Voucher Cluster (ALN 14.871/14.879) Finding: The Authority’s tenant files did not fully comply with HUD documentation requirements. Repeat Finding: No. Criteria: HUD has established various compliance requirements related to the use of Federal funds. These compliance requirements impact many areas of HUD compliance and reporting such as, but not limited to, tenant certifications and recertification procedures, tenant income eligibility, document retention requirements and documentation within tenant files. Sample Size and Population: Population of the program is 308 tenants of which 25 tenant files were selected for testing Condition and context: The following instances of noncompliance with specific HUD compliance requirements are noted as follows: • Two tenant files selected for testing - documentation of the Enterprise Income Verification (EIV) system reports utilized during the tenant application process was not maintained in the tenant file or signed appropriately. • One tenant file selected for testing – the utility allowance did not agree to the HUD-52580 • Two tenant files selected for testing did not have complete supporting documentation regarding compliance with waitlist procedures. Cause: The Authority was still working on the year-end accounting and preparing complete draft financial statements more than eight months after both their fiscal years ended December 31, 2023 and 2022, which delayed the audit and resulted in late submissions of both the Single Audit and Data Collection Forms and the audited financial data schedules in both years. Effect: Tenant files did not contain complete, accurate or appropriate documentation required by HUD. Recommendation: The specific documentation required by HUD should be maintained in the tenant files and the tenant files should be reviewed periodically for completeness. Questioned Costs: None Management Response: Management agrees with the finding and has prepared a response which is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Nancy Nash Mendez, Executive Director
2023-004 Tenant File Documentation Federal Award: U.S. Department of Housing and Urban Development (HUD) – Housing Choice Voucher Cluster (ALN 14.871/14.879) Finding: The Authority’s tenant files did not fully comply with HUD documentation requirements. Repeat Finding: No. Criteria: HUD has established various compliance requirements related to the use of Federal funds. These compliance requirements impact many areas of HUD compliance and reporting such as, but not limited to, tenant certifications and recertification procedures, tenant income eligibility, document retention requirements and documentation within tenant files. Sample Size and Population: Population of the program is 308 tenants of which 25 tenant files were selected for testing Condition and context: The following instances of noncompliance with specific HUD compliance requirements are noted as follows: • Two tenant files selected for testing - documentation of the Enterprise Income Verification (EIV) system reports utilized during the tenant application process was not maintained in the tenant file or signed appropriately. • One tenant file selected for testing – the utility allowance did not agree to the HUD-52580 • Two tenant files selected for testing did not have complete supporting documentation regarding compliance with waitlist procedures. Cause: The Authority was still working on the year-end accounting and preparing complete draft financial statements more than eight months after both their fiscal years ended December 31, 2023 and 2022, which delayed the audit and resulted in late submissions of both the Single Audit and Data Collection Forms and the audited financial data schedules in both years. Effect: Tenant files did not contain complete, accurate or appropriate documentation required by HUD. Recommendation: The specific documentation required by HUD should be maintained in the tenant files and the tenant files should be reviewed periodically for completeness. Questioned Costs: None Management Response: Management agrees with the finding and has prepared a response which is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Nancy Nash Mendez, Executive Director