Housing Authority of Washington CountyLocal Government

2025 – 001 Annual HQS Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Award Period: July 1, 2024, through June 30, 2025 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: The PHA must inspect the unit leased to a family at least biennially 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 sections 982.158(d) and 982.405(b)). Condition: During the testing of the HCV program tenant files for HQS, we noted four instances where the HQS inspection was not done within the 24-month regulatory period. Questioned costs: None Context: Out of the 60 files tested, four contained inspection timing errors as noted above. Cause: Out of the 60 files tested, the Authority did not fully meet the timing requirements of the biennial HQS to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: Out of the 60 files tested, the Authority did not meet the HQS timing requirement in compliance with HUD rules and regulations regarding biennial HQS inspections. Repeat finding: Yes. See prior year finding 2024-002. Recommendation: We recommend the housing authority designate an individual to ensure HQS inspections are completed timely. Views of responsible officials: The agency identified the system cause of the late inspections. The issue stemmed from a software system configuration error which prevented certain units from generating in the biennial batch inspection scheduling process.

2024 – 001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230). The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24CFR section 982.516). Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). Select tenants from the HCVP waiting list (see III.N.1, “Special Tests and Provisions – Selection from the Waiting List”) (24 CFR sections 982.202 through 982.207). Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516). Condition: During the testing of the HCV tenant files for eligibility, we noted one instance where the income was not calculated correctly during annual examination. Questioned costs: $210 Context: Out of the 40 files tested, one contained an error as noted above. The samples were statistically valid samples. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority is not in compliance with federal regulations regarding the calculation of annual income for determination of eligibility for the program. Repeat Finding: No Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month. The purpose of the review is to determine if the tenant files were prepared in accordance with internal policies and verify the compliance deficiencies have been corrected. Views of responsible officials: There is no disagreement with the audit finding.

2024 – 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The PHA must inspect the unit leased to a family at least 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 sections 982.158(d) and 982.405(b)). Condition: During the testing of the HCV program tenant files for the Annual HQS, we noted one instance where the HQS inspection was not done within the 24-month regulatory period. Questioned costs: None Context: Out of the 40 files tested, one contained an error as noted above. The samples were statistically valid samples. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority is not in compliance with federal regulations regarding the annual HQS. Repeat Finding: No Recommendation: We recommend that the housing authority designate an individual to assure HQS inspections are completed timely. Views of responsible officials: The agency feels the item in question for the inspection date is outside the scope of the audit dates which are July 1, 2023, to June 30, 2024. Additionally, when the agency discovered the error in March 2023 during a time of restructuring a very high turnover department, we took immediate action in correcting the inspection to be compliant.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 Award Period: July 1, 2021 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR section 985 states that PHA's must submit their SEMAP certification form within 60 calendar days after its fiscal year end. Condition: The Authority failed to submit their SEMAP certification form for FY2022. Questioned costs: None Context: During our review, we noted that the SEMAP certification was prepared but not submitted to HUD. Cause: The Authority attempted to submit their SEMAP certification form one day late, and at that time the SEMAP portal had been closed. Effect: The Authority is not in compliance with HUD requirements. Repeat Finding: No Recommendation: We recommend that the Authority review their SEMAP submission process to ensure it gets submitted on time each year. Views of responsible officials: There is no disagreement with the audit finding.