EIN: 440658915
UEI: M7HSMS617Z56
Audited by: Smith Marion & Co
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 2, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by June 2, 2026 (94 days ago).
What is a management decision? →Questioned Costs None Criteria "The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103). " Condition During our audit, we noted multiple instances where failed HQS inspections did not have the proper support for the failed HQS inspection. Therefore, the Authority falls out of the HQS inspection compliance as noted in the Uniform Guidance Part IV HUD 14.871. Context We selected a sample of 18 out of 175 failed inspections that occurred during the fiscal year. Out of the 18 samples selected, 2 of those lacked the proper documentation of a follow up passed inspection. With an error rate of 11%, the total number of deviations would be 19.4 if the average holds consistent across the population. Cause Controls over compliance associated with the Authority’s grants of federal funds are inadequate. Effect The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. Recommendations We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views Management agrees and has a Corrective Action Plan detailing the course of action to be taken in the next fiscal year.
Show full finding ▾Hide full finding ▴Questioned Costs None Criteria "The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103). " Condition During our audit, we noted multiple instances where failed HQS inspections did not have the proper support for the failed HQS inspection. Therefore, the Authority falls out of the HQS inspection compliance as noted in the Uniform Guidance Part IV HUD 14.871. Context We selected a sample of 18 out of 175 failed inspections that occurred during the fiscal year. Out of the 18 samples selected, 2 of those lacked the proper documentation of a follow up passed inspection. With an error rate of 11%, the total number of deviations would be 19.4 if the average holds consistent across the population. Cause Controls over compliance associated with the Authority’s grants of federal funds are inadequate. Effect The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. Recommendations We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views Management agrees and has a Corrective Action Plan detailing the course of action to be taken in the next fiscal year.
The Independence Housing Authority (IHA) implemented a new software system, Bob.AI, which was intended to automatically place units into abatement following a second failed inspection. IHA has worked with the software developer to resolve the issue, and the Director of HCV is now manually updating the unit status to abatement/termination after a second failed inspection. This update ensures that the required abatement notices are generated as intended.
2024-003
FAC accepted this audit on October 25, 2023 — management decision was due April 25, 2024.
The PHA must inspect the unit leased to a family at least bi‐annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103). During our audit, we noted multiple instances where failed HQS inspections did not have the proper support for the failed HQS inspection. Therefore, the Authority falls out of the HQS inspection compliance as noted in the Uniform Guidance Part IV HUD 14.871. We selected a sample of 40 failed inspections that occurred during the fiscal year. Out of the 40 samples selected, 6 of those lacked the proper documentation of a follow up passed inspection. Controls over compliance associated with the Authority’s grants of federal funds are inadequate. The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management agrees and has a corrective plan detailing the course of action to be taken in the next fiscal year.
Show full finding ▾Hide full finding ▴The PHA must inspect the unit leased to a family at least bi‐annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103). During our audit, we noted multiple instances where failed HQS inspections did not have the proper support for the failed HQS inspection. Therefore, the Authority falls out of the HQS inspection compliance as noted in the Uniform Guidance Part IV HUD 14.871. We selected a sample of 40 failed inspections that occurred during the fiscal year. Out of the 40 samples selected, 6 of those lacked the proper documentation of a follow up passed inspection. Controls over compliance associated with the Authority’s grants of federal funds are inadequate. The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management agrees and has a corrective plan detailing the course of action to be taken in the next fiscal year.
Finding # - Finding Description: 2023-001 Special Tests (N) - HQS lnspections Corrective Action Plan: Independence Housing Authority (IHA) has hired a new Director of HCV and hired an intemal HQS Inspector to remedy the situation. All HQS processes will be performed by the intemal inspector versus the previous contractors and multiple staff who performed oversight prior. IHA is also training staff on using housing software to schedule inspections, gather reports, schedule follow-ups and track pending and open inspections. Anticipated Completion Date: 91112023
2022-001
FAC accepted this audit on December 13, 2022 — management decision was due June 13, 2023.
During our audit, the Authority was unable to provide us with a reliable listing of HQS Inspections or any supporting documentation that any HQS inspections had taken place during the fiscal year under examination. Therefore, we were not able to perform the necessary procedures as described in the Uniform Guidance Part IV HUD 14.871 to ensure compliance with the above criteria. Context: We selected a sample of 40 failed inspections that occurred during the fiscal year. Out of the 40 samples selected, 1 of those lacked the proper documentation and 2 of those did not get reinspected within the proper timeframe. Cause: Controls over compliance associated with the Authority?s grants of federal funds are inadequate. Effect: The Authority is non-compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. Recommendations: We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views: Management agrees and has a corrective plan detailing the course of action to be taken in the next fiscal year.
Show full finding ▾Hide full finding ▴Criteria: "The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR ??982.405, 983.103))."Condition: During our audit, the Authority was unable to provide us with a reliable listing of HQS Inspections or any supporting documentation that any HQS inspections had taken place during the fiscal year under examination. Therefore, we were not able to perform the necessary procedures as described in the Uniform Guidance Part IV HUD 14.871 to ensure compliance with the above criteria. Context: We selected a sample of 40 failed inspections that occurred during the fiscal year. Out of the 40 samples selected, 1 of those lacked the proper documentation and 2 of those did not get reinspected within the proper timeframe. Cause: Controls over compliance associated with the Authority?s grants of federal funds are inadequate. Effect: The Authority is non-compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. Recommendations: We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views: Management agrees and has a corrective plan detailing the course of action to be taken in the next fiscal year.
Management received an audit finding on failure to complete required re-inspections within the required timeline of 30 days from the failed date. Prior staff that were here during this period of time that these findings occurred are no longer here and IHA now has a Director of Section 8 in place since April 2022 that will monitor that program and ensure that these inspections and follow up inspections from failed items are completed. I believe that the inspections were done but the prior HCV staff just did not put the 52580 Inspection Form in the file or make notes in the tenant file or electronic file. This is the reason that we have removed certain staff in this department and refilled these positions to control these errors. A tracking spreadsheet has been created for Biennial Inspections and Failed Item Re-inspections so that going forward, we don't miss them. Anticipated Completion Date: IHA has an Independent Contractor coming in on December 10-16 to review around 280 of the Section 8 files to review for any errors and make proper internal control measures to keep this from occurring in the future. Once the audit results are reported back to IHA, we can move forward and either schedule to have all of the files reviewed by the Independent Contractor or review the rest of the files as we pull them for their Annual Reexam.
FAC accepted this audit on October 23, 2021 — management decision was due April 23, 2022.
Section III Federal Awards Findings US Department of Housing and Urban Development Direct Award Program Name Section 8 Housing Choice Vouchers CFDA Number 14.871 2021-001 Significant Deficiency - Special Tests (N) - Utility Allowance Criteria Federal regulations (24 CFR section 982.517) states a Public Housing Agency (PHA) must use the appropriate utility allowance for the lessor of the size of dwelling unit actually leased by the family or family unit size as deteremined under the PHA subsidy standards Condition We noted errors with the utility allowance calculation. The proper dwelling unit size was not being used which resulted in improper utility allowance thus the Housing Assitance Payment (HAP) is incorrect. Context During our testing, we noted three instances out of Forty-Eight in which the Housing Authority calculated the utility allowance using a one bedroom instead of the proper two bedroom. Cause The Housing Authoirty does not have the proper internal controls in place to ensure the correct dwelling unit size is used to calulate the utility allowance prior to the disbursement of HAP. Effect Non-compliance Recommendations We recommend the Housing Authority implement internal control procedures to ensure the utility allowance calculations are accuratly recorded. Management Management agrees and has a corrective plan detailing the course of action to be taken in the next fiscal year. Views
Show full finding ▾Hide full finding ▴Section III Federal Awards Findings US Department of Housing and Urban Development Direct Award Program Name Section 8 Housing Choice Vouchers CFDA Number 14.871 2021-001 Significant Deficiency - Special Tests (N) - Utility Allowance Criteria Federal regulations (24 CFR section 982.517) states a Public Housing Agency (PHA) must use the appropriate utility allowance for the lessor of the size of dwelling unit actually leased by the family or family unit size as deteremined under the PHA subsidy standards Condition We noted errors with the utility allowance calculation. The proper dwelling unit size was not being used which resulted in improper utility allowance thus the Housing Assitance Payment (HAP) is incorrect. Context During our testing, we noted three instances out of Forty-Eight in which the Housing Authority calculated the utility allowance using a one bedroom instead of the proper two bedroom. Cause The Housing Authoirty does not have the proper internal controls in place to ensure the correct dwelling unit size is used to calulate the utility allowance prior to the disbursement of HAP. Effect Non-compliance Recommendations We recommend the Housing Authority implement internal control procedures to ensure the utility allowance calculations are accuratly recorded. Management Management agrees and has a corrective plan detailing the course of action to be taken in the next fiscal year. Views
US Department of Housing and Urban Development & US Department of Agriculture Program Name: All programs listed on the Schedule of Expenditures of Federal Awards, both direct and indirect Finding 2021 001 Significant Deficiency ? Special Tests (N) ? Utility Allowance ? Section 8 Vouchers Criteria - Federal regulations (24 CFR section 982.517) states a Public Housing Agency (PHA) must use the appropriate utility allowance for the lessor of the size of dwelling unit actually leased by the family or family unit size as determined under the PHA subsidy standards Condition - We noted errors with the utility allowance calculation. The proper dwelling unit size was not being used which resulted in improper utility allowance thus the Housing Assistance Payment (HAP) is incorrect. Context - During our testing, we noted three instances out of Forty-Eight in which the Housing Authority calculated the utility allowance using a one bedroom instead of the proper two bedroom. Cause - The Housing Authority does not have the proper internal controls in place to ensure the correct dwelling unit size is used to calculate the utility allowance prior to the disbursement of HAP. Effect - Non-compliance SRecommendations - We recommend the Housing Authority implement internal control procedures to ensure the utility allowance calculations are accurately recorded. SManagement Views - Management agrees and has a corrective plan detailing the course of action to be taken in the next fiscal year. Management's Corrective Action Plan: Management received an audit finding on incorrect Utility Allowance calculations on new move-ins. The sheets did not match up to the 50058 sent to HUD, which calculated inaccurate HAP amounts. IHA will begin to get proposals to perform a Full Audit of a minimum of 20% of Section 8 files. IHA will determine after the initial 20% of files have been audited if additional file % will have to be completed. If there is less than 10% error rate on the 20% of files reviewed, there will be no need for further files. If the error rate is higher than 10% on those 20% of files reviewed, another 20% will need to be completed. So on and so forth until the problems have been found, fixed, and trained upon. IHA will also do an RFP for monitoring of the Section 8 program from an outside vendor to provide supervision and training to the Section 8 staff. The 3rd party contractor will have full authority to train, discipline and terminate employment on staff that cannot properly do the work accurately. IHA will require the 3rd party monitoring agency to ensure that the Utility Allowance sheet or HUD 52667 forms match the 50058 before submission to PIC on new move-ins, transfers, annual reexams. Under the Report to Management, there were issues with not finding 50058?s in 2 out of the 8 files that were reviewed. This represents a 25% error rate. The 3rd party monitoring company will ensure that the checklist is checked for having the 50058 in the file as well as verifying that the 50058 is there for the action being taken, whether a new move-in, transfer, port, annual or interim reexamination.
FAC accepted this audit on November 4, 2020 — management decision was due May 4, 2021.
FAC accepted this audit on November 19, 2019 — management decision was due May 19, 2020.
US Department of Housing and Urban Development & US Department of Agriculture Program Name: All programs listed on the Schedule of Expenditures of Federal Awards, both direct and indirect Finding 2019-001 Significant Deficiency Criteria In accordance with OMB Uniform Guidance 2 CFR 200.512 ? Report Submission, for non-federal agencies expending over $750,000 of federal awards, the audit must be completed and the data collection form (SF-SAC) and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report(s), or nine months after the end of the audit period. Condition During the audit, we noted that the SF-SAC for the years 2015, 2016, or 2018 had not been filed with the Federal Audit Clearinghouse. Cause Personnel responsible for ensuring the timely submission of the SF-SAC were not informed of the requirements and no internal controls were in place to ensure compliance. Effect The Authority was in violation of the Federal Regulation relating to report submissions. Questioned Costs Not applicable. Context The Authority was well above the $750,000 threshold requiring the submission of the SF-SAC for the missing years of filings; therefore, the noncompliance has been ongoing for years without correction. Recommendation We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to all federal awards. Management?s View We agree with the finding.
Show full finding ▾Hide full finding ▴US Department of Housing and Urban Development & US Department of Agriculture Program Name: All programs listed on the Schedule of Expenditures of Federal Awards, both direct and indirect Finding 2019-001 Significant Deficiency Criteria In accordance with OMB Uniform Guidance 2 CFR 200.512 ? Report Submission, for non-federal agencies expending over $750,000 of federal awards, the audit must be completed and the data collection form (SF-SAC) and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report(s), or nine months after the end of the audit period. Condition During the audit, we noted that the SF-SAC for the years 2015, 2016, or 2018 had not been filed with the Federal Audit Clearinghouse. Cause Personnel responsible for ensuring the timely submission of the SF-SAC were not informed of the requirements and no internal controls were in place to ensure compliance. Effect The Authority was in violation of the Federal Regulation relating to report submissions. Questioned Costs Not applicable. Context The Authority was well above the $750,000 threshold requiring the submission of the SF-SAC for the missing years of filings; therefore, the noncompliance has been ongoing for years without correction. Recommendation We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to all federal awards. Management?s View We agree with the finding.
US Department of Housing and Urban Development & US Department of Agriculture Program Name: All programs listed on the Schedule of Expenditures of Federal Awards, both direct and indirect Finding 2019-001 Significant Deficiency Contact Person: Michael Bishop Executive Director 4215 S. Hocker Dr., Bldg. 5 Independence, MO 64055 Anticipated Completion Date: 09/26/2019 Management?s Corrective Action Plan: Management will put in place internal controls to ensure and verify timely submissions of the SF-SAC. The Executive Director will be held responsible for logging into the federal clearinghouse prior to the nine month deadline from fiscal year end and verifying the SF-SAC has been submitted. Once the Executive Director logs into the Federal Clearinghouse and if the submission has yet to be submitted, the Executive Director will either contact the Auditors to get the SF-SAC submitted or will ensure that the SF-SAC is submitted prior to the deadline.
FAC accepted this audit on August 8, 2020 — management decision was due February 8, 2021.
FAC accepted this audit on December 21, 2017 — management decision was due June 21, 2018.
FAC accepted this audit on August 12, 2020 — management decision was due February 12, 2021.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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