FAC Explorer

Audit 42371

FY End
2022-12-31
Total Expended
$22.98M
Findings
6
Programs
5
Organization: Bellingham Housing Authority (WA)
Year: 2022 Accepted: 2023-09-28
Auditor: Loveridge Hunt & CO PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
49575 2022-001 Material Weakness - N
49576 2022-001 Material Weakness - N
49577 2022-001 Material Weakness - N
626017 2022-001 Material Weakness - N
626018 2022-001 Material Weakness - N
626019 2022-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $18.65M Yes 1
14.850 Public and Indian Housing $1.19M - 0
14.879 Mainstream Vouchers $931,620 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $525,000 Yes 0
14.872 Public Housing Capital Fund $93,544 - 0

Contacts

Name Title Type
GLBPMYLJFLE9 Jana Robbins Auditee
3605274626 Ron Fechtner Auditor
No contacts on file

Notes to SEFA

Title: Program Costs Accounting Policies: The Schedule of Expenditures of Federal Award (SEFA) provides a list of all federal assistance programs in which the Authority participate and summarizes the grant transactions of Authority for the year ending December 31, 2022. The SEFA is presented using the same basis of accounting as the financial statements. The Housing Authority uses the accrual basis of accounting as prescribed by generally accepted accounting procedures. Expenditures are recognized following the cost principles contained in the OMB Circular-A-87 and Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The amounts shown as current year expenditures represent only the federal portion of the program costs. Entire program costs, including the Bellingham Housing Authoritys portion, are more than shown. Such expenditures are recognized following, as applicable, either the cost principles in the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Expenditures Accounting Policies: The Schedule of Expenditures of Federal Award (SEFA) provides a list of all federal assistance programs in which the Authority participate and summarizes the grant transactions of Authority for the year ending December 31, 2022. The SEFA is presented using the same basis of accounting as the financial statements. The Housing Authority uses the accrual basis of accounting as prescribed by generally accepted accounting procedures. Expenditures are recognized following the cost principles contained in the OMB Circular-A-87 and Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Schedule of Expenditures of Federal Awards shows expenditures paid and accrued as of fiscal year end. This total does not equal the amount requested during the fiscal year on the Line of Credit Control System Payment Vouchers, due to accruals.

Finding Details

Finding 2022-001
Information on the federal program: Federal Award Identification: ALN 14.871 Section 8 Housing Choice Vouchers and ALN 14.879 Mainstream Voucher Program (MV) Federal Agency: Department of Housing and Urban Development Pass-through entity: N/ A Criteria or specific requirement (including statutory, regulatory, or other citation): For units under HAP contract that fail to meet Housing Quality Standards (HQS), the Housing 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 PHA-approved extension. Condition: During the auditor's test of compliance for the 2022 audit, it was noted that there were HQS inspections that occurred, which were noted as failed, but reinspections were not performed timely. Refer to the context for number of units tested and number of units in which reinspections did not occur timely. Cause: In 2022 with the HUD waivers regarding inspections expired, the Authority had a significant backlog of inspections. Due to the amount of inspections required, staff responsible for inspections were not able to revisit failed inspections in a timely manner. Effect: Units occupied by voucher holders may have not met the HQS standards. Questioned costs: We were unable to determine known questioned costs nor likely questioned costs. Context: A sample of 25 units noted as failing HQS inspections were selected to ensure that reinspections occurred as required. 13 of 25 units did not have the reinspections as required within 30 days. Identification as a repeat finding: N/A Recommendation: Management should implement procedures to ensure that re-inspections of units that fail HQS occur within the required time frame. Views of responsible officials and planned corrective actions: Management agrees with the finding. Also, please see the Corrective Action Plan on Page 4.
Finding 2022-001
Information on the federal program: Federal Award Identification: ALN 14.871 Section 8 Housing Choice Vouchers and ALN 14.879 Mainstream Voucher Program (MV) Federal Agency: Department of Housing and Urban Development Pass-through entity: N/ A Criteria or specific requirement (including statutory, regulatory, or other citation): For units under HAP contract that fail to meet Housing Quality Standards (HQS), the Housing 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 PHA-approved extension. Condition: During the auditor's test of compliance for the 2022 audit, it was noted that there were HQS inspections that occurred, which were noted as failed, but reinspections were not performed timely. Refer to the context for number of units tested and number of units in which reinspections did not occur timely. Cause: In 2022 with the HUD waivers regarding inspections expired, the Authority had a significant backlog of inspections. Due to the amount of inspections required, staff responsible for inspections were not able to revisit failed inspections in a timely manner. Effect: Units occupied by voucher holders may have not met the HQS standards. Questioned costs: We were unable to determine known questioned costs nor likely questioned costs. Context: A sample of 25 units noted as failing HQS inspections were selected to ensure that reinspections occurred as required. 13 of 25 units did not have the reinspections as required within 30 days. Identification as a repeat finding: N/A Recommendation: Management should implement procedures to ensure that re-inspections of units that fail HQS occur within the required time frame. Views of responsible officials and planned corrective actions: Management agrees with the finding. Also, please see the Corrective Action Plan on Page 4.
Finding 2022-001
Information on the federal program: Federal Award Identification: ALN 14.871 Section 8 Housing Choice Vouchers and ALN 14.879 Mainstream Voucher Program (MV) Federal Agency: Department of Housing and Urban Development Pass-through entity: N/ A Criteria or specific requirement (including statutory, regulatory, or other citation): For units under HAP contract that fail to meet Housing Quality Standards (HQS), the Housing 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 PHA-approved extension. Condition: During the auditor's test of compliance for the 2022 audit, it was noted that there were HQS inspections that occurred, which were noted as failed, but reinspections were not performed timely. Refer to the context for number of units tested and number of units in which reinspections did not occur timely. Cause: In 2022 with the HUD waivers regarding inspections expired, the Authority had a significant backlog of inspections. Due to the amount of inspections required, staff responsible for inspections were not able to revisit failed inspections in a timely manner. Effect: Units occupied by voucher holders may have not met the HQS standards. Questioned costs: We were unable to determine known questioned costs nor likely questioned costs. Context: A sample of 25 units noted as failing HQS inspections were selected to ensure that reinspections occurred as required. 13 of 25 units did not have the reinspections as required within 30 days. Identification as a repeat finding: N/A Recommendation: Management should implement procedures to ensure that re-inspections of units that fail HQS occur within the required time frame. Views of responsible officials and planned corrective actions: Management agrees with the finding. Also, please see the Corrective Action Plan on Page 4.
Finding 2022-001
Information on the federal program: Federal Award Identification: ALN 14.871 Section 8 Housing Choice Vouchers and ALN 14.879 Mainstream Voucher Program (MV) Federal Agency: Department of Housing and Urban Development Pass-through entity: N/ A Criteria or specific requirement (including statutory, regulatory, or other citation): For units under HAP contract that fail to meet Housing Quality Standards (HQS), the Housing 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 PHA-approved extension. Condition: During the auditor's test of compliance for the 2022 audit, it was noted that there were HQS inspections that occurred, which were noted as failed, but reinspections were not performed timely. Refer to the context for number of units tested and number of units in which reinspections did not occur timely. Cause: In 2022 with the HUD waivers regarding inspections expired, the Authority had a significant backlog of inspections. Due to the amount of inspections required, staff responsible for inspections were not able to revisit failed inspections in a timely manner. Effect: Units occupied by voucher holders may have not met the HQS standards. Questioned costs: We were unable to determine known questioned costs nor likely questioned costs. Context: A sample of 25 units noted as failing HQS inspections were selected to ensure that reinspections occurred as required. 13 of 25 units did not have the reinspections as required within 30 days. Identification as a repeat finding: N/A Recommendation: Management should implement procedures to ensure that re-inspections of units that fail HQS occur within the required time frame. Views of responsible officials and planned corrective actions: Management agrees with the finding. Also, please see the Corrective Action Plan on Page 4.
Finding 2022-001
Information on the federal program: Federal Award Identification: ALN 14.871 Section 8 Housing Choice Vouchers and ALN 14.879 Mainstream Voucher Program (MV) Federal Agency: Department of Housing and Urban Development Pass-through entity: N/ A Criteria or specific requirement (including statutory, regulatory, or other citation): For units under HAP contract that fail to meet Housing Quality Standards (HQS), the Housing 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 PHA-approved extension. Condition: During the auditor's test of compliance for the 2022 audit, it was noted that there were HQS inspections that occurred, which were noted as failed, but reinspections were not performed timely. Refer to the context for number of units tested and number of units in which reinspections did not occur timely. Cause: In 2022 with the HUD waivers regarding inspections expired, the Authority had a significant backlog of inspections. Due to the amount of inspections required, staff responsible for inspections were not able to revisit failed inspections in a timely manner. Effect: Units occupied by voucher holders may have not met the HQS standards. Questioned costs: We were unable to determine known questioned costs nor likely questioned costs. Context: A sample of 25 units noted as failing HQS inspections were selected to ensure that reinspections occurred as required. 13 of 25 units did not have the reinspections as required within 30 days. Identification as a repeat finding: N/A Recommendation: Management should implement procedures to ensure that re-inspections of units that fail HQS occur within the required time frame. Views of responsible officials and planned corrective actions: Management agrees with the finding. Also, please see the Corrective Action Plan on Page 4.
Finding 2022-001
Information on the federal program: Federal Award Identification: ALN 14.871 Section 8 Housing Choice Vouchers and ALN 14.879 Mainstream Voucher Program (MV) Federal Agency: Department of Housing and Urban Development Pass-through entity: N/ A Criteria or specific requirement (including statutory, regulatory, or other citation): For units under HAP contract that fail to meet Housing Quality Standards (HQS), the Housing 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 PHA-approved extension. Condition: During the auditor's test of compliance for the 2022 audit, it was noted that there were HQS inspections that occurred, which were noted as failed, but reinspections were not performed timely. Refer to the context for number of units tested and number of units in which reinspections did not occur timely. Cause: In 2022 with the HUD waivers regarding inspections expired, the Authority had a significant backlog of inspections. Due to the amount of inspections required, staff responsible for inspections were not able to revisit failed inspections in a timely manner. Effect: Units occupied by voucher holders may have not met the HQS standards. Questioned costs: We were unable to determine known questioned costs nor likely questioned costs. Context: A sample of 25 units noted as failing HQS inspections were selected to ensure that reinspections occurred as required. 13 of 25 units did not have the reinspections as required within 30 days. Identification as a repeat finding: N/A Recommendation: Management should implement procedures to ensure that re-inspections of units that fail HQS occur within the required time frame. Views of responsible officials and planned corrective actions: Management agrees with the finding. Also, please see the Corrective Action Plan on Page 4.