FAC Explorer

Audit 390400

FY End
2025-06-30
Total Expended
$5.28M
Findings
2
Programs
4
Organization: Housing Authority of the City of Pasco and Franklin County (WA)
Year: 2025 Accepted: 2026-03-05
Auditor: SMITHMARION&CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1176589 2025-001 Material Weakness Yes N
1176590 2025-002 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $3.90M Yes 2
14.850 PUBLIC HOUSING OPERATING FUND $979,037 Yes 0
14.872 PUBLIC HOUSING CAPITAL FUND $311,712 Yes 0
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $86,224 Yes 0

Contacts

Name Title Type
E2FTWRBKRBA7 Bret Sanders Auditee
5095473581 Cole Monroe Auditor
No contacts on file

Notes to SEFA

The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of the City of Pasco and Franklin County (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance awards. For the purpose of this schedule, only the portion of the program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. This schedule also only includes the amounts expended by the Authority, none of the amount expended, if any, by the discretely present component units have been included.
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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements.
The Authority has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414.

Finding Details

Finding 2025-001
HUD requires that all units under the Housing Choice Vouchers Program meet specific Housing Quality Standards (HQS). In cases of failed inspections, timely re-inspections are mandatory, and if compliance is not achieved, abatement of Housing Assistance Payments (HAP) or voucher cancellation is required. During the audit, it was noted that in one (1) instance a unit that failed its HQS inspection (life-threatening failure) did not undergo a subsequent re-inspection within the proper 24 hour time period. Consequently, the required abatement of HAP or cancellation of the housing voucher was not executed. This finding represents an issue within the Housing Voucher Cluster program, as it was identified in one (1) files tested out of a sample of two (2) failed inspections. It highlights a need for more rigorous enforcement and monitoring of HQS compliance. The non-compliance appears to stem from oversight or procedural lapses in the enforcement of HQS within the Housing Voucher Cluster program. This may be due to inadequate training, monitoring, or failure to adhere to established protocols. Implement more stringent procedures for monitoring HQS compliance, including timely reinspection and enforcement of HAP abatement or voucher cancellation. Enhance training for staff involved in the HQS process to ensure a thorough understanding of compliance requirements. Establish a system of regular audits to identify and rectify lapses in HQS enforcement promptly.
Finding 2025-002
Neither the PHA nor any of its contractors or subcontractors may enter into any contract or arrangement in connection with the HCV program in which any of the following classes of persons has any interest, direct or indirect, during tenure or for one year thereafter (2) Any employe of the PA, or any contractor, subcontractor or agent of the PHA, who formulates policy or who influences decisions with respect to the programs (24 CFR sections 982.161). During the audit, it was noted that multiple (3) participants of the HCV program were either employees or relatives of employees. According to 24 CFR 982.161, any employee who exercise authority over the PHA cannot receive benefits. However, past OIG action has issued findings to Public Housing Authority entitles when any employee and immediate family member receives benefits as unallowable cost. The OIG’s concern seems to be that the tenant may have received special treatment at admission or is currently receiving special treatment related to rent calculation, unit inspections, etc. The OIG regarded the HAP costs as ineligible and recommended that the PHA re-pay the funds. The non-compliance appears to stem from ambiguity in the Housing Authority's policy's relating to Conflict of Interest. The Conflict of Interest undermines the community's trust with the Housing Choice Vouchers Program. It also represents a risk of improper use of federal funds and can impact the credibility and effectiveness of the program. Update the Authority's Conflict of Interest policy and implement more stringent procedures for monitoring Conflict of Interest.