Audit 52922

FY End
2022-09-30
Total Expended
$7.19M
Findings
8
Programs
9
Year: 2022 Accepted: 2023-07-12

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
47666 2022-001 Significant Deficiency - N
47667 2022-002 Significant Deficiency - N
47668 2022-001 Significant Deficiency - N
47669 2022-002 Significant Deficiency - N
624108 2022-001 Significant Deficiency - N
624109 2022-002 Significant Deficiency - N
624110 2022-001 Significant Deficiency - N
624111 2022-002 Significant Deficiency - N

Programs

Contacts

Name Title Type
C4A2K3QMMVR4 Melanie Corey Auditee
3604281959 Mandy Merchant Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the 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 allowed under the Uniform Guidance. 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, 2022 - Balances outstanding at the end of the audit period were 1753599.
Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the 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 allowed under the Uniform Guidance. 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, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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.

Finding Details

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: WA061VO - 2022 Award Period: October 1, 2021 ? September 30, 2022 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 CFRsections 982.158(d) and 982.404). Condition: The Authority did not perform HQS and QC inspections in accordance with program compliance requirements. The Authority requested an extension of the COVID-19 waiver that waived the compliance requirement for QC inspections; however, an extension was not granted by HUD. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $13,742 were calculated based on the HAP payment for units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Context: A sample of 40 units found that 3 units that were not inspected timely. The Authority did not perform QC inspections during the fiscal year. The Authority did not properly abate HAP for 2 out of 20 failed inspections. The samples were statistically valid. Cause: HQS inspections were not completed within the required timeframe for 3 units. Due to the COVID-19 pandemic, QC inspections were waived under PIH notice 2021-14 until December 31, 2021; however, the Authority did not perform QC inspections for the period January 1, 2022 ? September 30, 2022. The Authority did not abate 2 units timely. Effect: The Authority is not in compliance with HQS, HQS enforcement, and QC inspection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that required HQS and QC inspections are completed timely. We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: WA061VO - 2022 Award Period: October 1, 2021 ? September 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition: The Authority did not review the utility rate data or update the utility allowance schedule during the fiscal year in accordance with compliance requirements. Questioned costs: Unable to determine. Context: The utility rate data was not reviewed and the utility allowance schedule was not updated. Cause: The Authority requested an extension of the COVID-19 waiver that waived the compliance requirement; however, an extension was not granted by HUD. Effect: The Authority is not in compliance with utility allowance schedule compliance requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that a utility allowance review is performed annually. If waivers are requested, we recommend the Authority ensures the requested waivers are approved to ensure compliance. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: WA061VO - 2022 Award Period: October 1, 2021 ? September 30, 2022 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 CFRsections 982.158(d) and 982.404). Condition: The Authority did not perform HQS and QC inspections in accordance with program compliance requirements. The Authority requested an extension of the COVID-19 waiver that waived the compliance requirement for QC inspections; however, an extension was not granted by HUD. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $13,742 were calculated based on the HAP payment for units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Context: A sample of 40 units found that 3 units that were not inspected timely. The Authority did not perform QC inspections during the fiscal year. The Authority did not properly abate HAP for 2 out of 20 failed inspections. The samples were statistically valid. Cause: HQS inspections were not completed within the required timeframe for 3 units. Due to the COVID-19 pandemic, QC inspections were waived under PIH notice 2021-14 until December 31, 2021; however, the Authority did not perform QC inspections for the period January 1, 2022 ? September 30, 2022. The Authority did not abate 2 units timely. Effect: The Authority is not in compliance with HQS, HQS enforcement, and QC inspection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that required HQS and QC inspections are completed timely. We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: WA061VO - 2022 Award Period: October 1, 2021 ? September 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition: The Authority did not review the utility rate data or update the utility allowance schedule during the fiscal year in accordance with compliance requirements. Questioned costs: Unable to determine. Context: The utility rate data was not reviewed and the utility allowance schedule was not updated. Cause: The Authority requested an extension of the COVID-19 waiver that waived the compliance requirement; however, an extension was not granted by HUD. Effect: The Authority is not in compliance with utility allowance schedule compliance requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that a utility allowance review is performed annually. If waivers are requested, we recommend the Authority ensures the requested waivers are approved to ensure compliance. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: WA061VO - 2022 Award Period: October 1, 2021 ? September 30, 2022 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 CFRsections 982.158(d) and 982.404). Condition: The Authority did not perform HQS and QC inspections in accordance with program compliance requirements. The Authority requested an extension of the COVID-19 waiver that waived the compliance requirement for QC inspections; however, an extension was not granted by HUD. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $13,742 were calculated based on the HAP payment for units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Context: A sample of 40 units found that 3 units that were not inspected timely. The Authority did not perform QC inspections during the fiscal year. The Authority did not properly abate HAP for 2 out of 20 failed inspections. The samples were statistically valid. Cause: HQS inspections were not completed within the required timeframe for 3 units. Due to the COVID-19 pandemic, QC inspections were waived under PIH notice 2021-14 until December 31, 2021; however, the Authority did not perform QC inspections for the period January 1, 2022 ? September 30, 2022. The Authority did not abate 2 units timely. Effect: The Authority is not in compliance with HQS, HQS enforcement, and QC inspection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that required HQS and QC inspections are completed timely. We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: WA061VO - 2022 Award Period: October 1, 2021 ? September 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition: The Authority did not review the utility rate data or update the utility allowance schedule during the fiscal year in accordance with compliance requirements. Questioned costs: Unable to determine. Context: The utility rate data was not reviewed and the utility allowance schedule was not updated. Cause: The Authority requested an extension of the COVID-19 waiver that waived the compliance requirement; however, an extension was not granted by HUD. Effect: The Authority is not in compliance with utility allowance schedule compliance requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that a utility allowance review is performed annually. If waivers are requested, we recommend the Authority ensures the requested waivers are approved to ensure compliance. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: WA061VO - 2022 Award Period: October 1, 2021 ? September 30, 2022 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 CFRsections 982.158(d) and 982.404). Condition: The Authority did not perform HQS and QC inspections in accordance with program compliance requirements. The Authority requested an extension of the COVID-19 waiver that waived the compliance requirement for QC inspections; however, an extension was not granted by HUD. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $13,742 were calculated based on the HAP payment for units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Context: A sample of 40 units found that 3 units that were not inspected timely. The Authority did not perform QC inspections during the fiscal year. The Authority did not properly abate HAP for 2 out of 20 failed inspections. The samples were statistically valid. Cause: HQS inspections were not completed within the required timeframe for 3 units. Due to the COVID-19 pandemic, QC inspections were waived under PIH notice 2021-14 until December 31, 2021; however, the Authority did not perform QC inspections for the period January 1, 2022 ? September 30, 2022. The Authority did not abate 2 units timely. Effect: The Authority is not in compliance with HQS, HQS enforcement, and QC inspection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that required HQS and QC inspections are completed timely. We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: WA061VO - 2022 Award Period: October 1, 2021 ? September 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition: The Authority did not review the utility rate data or update the utility allowance schedule during the fiscal year in accordance with compliance requirements. Questioned costs: Unable to determine. Context: The utility rate data was not reviewed and the utility allowance schedule was not updated. Cause: The Authority requested an extension of the COVID-19 waiver that waived the compliance requirement; however, an extension was not granted by HUD. Effect: The Authority is not in compliance with utility allowance schedule compliance requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that a utility allowance review is performed annually. If waivers are requested, we recommend the Authority ensures the requested waivers are approved to ensure compliance. Views of responsible officials: There is no disagreement with the audit finding.