Finding Text
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.