FAC Explorer

Audit 405800

FY End
2025-09-30
Total Expended
$9.11M
Findings
2
Programs
8
Organization: Housing Authority of Skagit County (WA)
Year: 2025 Accepted: 2026-06-30
Auditor: CLIFTONLARSONALLEN LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1221493 2025-001 Material Weakness Yes N
1221494 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Voucher Program $6.13M Yes 1
10.405 Farm Labor Housing Loans and Grants - Beginning Loan Balance $1.56M Yes 0
14.871 Emergency Housing Vouchers $525,208 Yes 1
10.427 RURAL RENTAL ASSISTANCE PAYMENTS $319,633 Yes 0
10.405 Farm Labor Housing Loans and Grants - Rental Assistance $203,868 Yes 0
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $191,239 Yes 0
14.896 PIH Family Self-Sufficiency Program $115,280 Yes 0
81.042 WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS $68,734 Yes 0

Contacts

Name Title Type
C4A2K3QMMVR4 Renee C. Sinclair Auditee
3604281959 Mandy Merchant Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Housing Authority of Skagit County under programs of the federal government for the year ended September 30, 2025. 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 operations of the Housing Authority of Skagit County, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of the Housing Authority of Skagit County.
The Authority was approved by the U.S. Department of Agriculture to receive loans to develop, acquire, or renovate low-income housing under the Farm Labor Housing Loan and Grant Program (ALN 10.405). Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The loan balances at September 30, 2025 are as follows:

Finding Details

Finding 2025-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 Federal Award Identification Number and Year: WA061VO - 2025 Award Period: October 1, 2024 – September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Housing Authority of Skagit County (the Authority) must inspect a unit leased to a family at least annually to determine if the unit meets HQS and the Authority must conduct quality control (QC) re-inspections (24 CFR sections 982.405(a) and 982.405(b)). For units under HAP contract that fail to meet HQS, the Authority 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 Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority 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 Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not perform HQS inspections in accordance with program compliance requirements. Questioned costs: None Context: A sample of 40 units found three units that were not inspected timely. In addition, it was noted that four inspection reports were not signed off by the inspector. The samples were statistically valid. Cause: Significant turnover in the inspection department during the year. Effect: The Authority is not in compliance with federal regulations regarding housing quality standards and completing inspections in a timely manner. Repeat finding: Yes, 2024-001 Recommendation: We recommend the Authority review their process and internal controls for HQS annual inspections to ensure compliance with HUD requirements and their administrative plan. Views of responsible officials: There is no disagreement with the audit finding.