Audit 369825

FY End

2024-12-31

Total Expended

$1.69M

Findings

1

Programs

1

Organization: First Ame Housing Association (WA)

Year: 2024 Accepted: 2025-09-30

Auditor: Loveridge Hunt & CO PLLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1157581	2024-001	Material Weakness	Yes	E

ALN	Program	Spent	Major	Findings
14.195	Section 8 Housing Assistance Payments Program	$1.69M	Yes	1

Contacts

Name	Title	Type
Z8KXKUMR14M7	Earl Richardson	Auditee
2067909197	Ron Fechtner	Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of First AME Housing Association (the Organization) under programs of federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operation of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.

Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the OMB Circular A-122 and Uniform Guidance. The Organization did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-001

S3800-010 Finding Reference Number: 2024-001 S3800-011 Title and Assistance Listing Number of Federal Program: 14.195 Section 8 Housing Assistance Payments Program S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status: Resolved S3800-017 Information on Universe and Population Size: 98 tenant files S3800-018 Sample Size Information: 11 tenant files Sample size: 11 Dollar amount: $0 S3800-019 Identification of Repeat Finding and Finding Reference Number: Repeat finding, prior reference number 2021-004, 2022-003, 2023-002 S3800-020 Criteria: In accordance with the Rental Assistance Agreements with HUD, the Organization is required to recertify tenant eligibility on an annual basis. S3800-030 Statement of Condition: There were 1 out of the 11 tenant files which were processed on later than an annual basis and were late to recertify. S3800-032 Cause: After the prior management left, current staffing was not sufficient to ensure all certifications were completed timely. Also, some tenants were not willing to assist with the certification process. S3800-033 Effect or Potential Effect and Perspective: Housing assistance may be over paying for tenant. Tenants may not be eligible as required. S3800-035 Auditor Non-Compliance Code: R - Section 8 program administration S3800-040 Questioned Costs: $0 S3800-045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800-012 Please identify the property(s) and associated questioned costs this finding applies to: First AME Housing Association S3800-037 FHA/Contract Number: WA19M000137, WA19L000005 and WA19L000004 S3800-050 Context: Management did not timely complete annual recertifications of tenants. S3800-080 Recommendation: Management should ensure annual recertifications of tenant files are being completed on a timely basis by implementing secondary review of tenant files and should document the review to be included in the files. S3800-090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800-130 Response Indicator: Agree S3800-140 Completion Date: 3/31/2024 S3800-150 Response: Ownership agreed with the finding and has implemented a corrective action plan.