EIN: 910814128
UEI: X55RNGZBLPW7
Audited by: Office of the Washington State Auditor
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of August 31, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 29, 2026. 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 December 29, 2026 (119 days from today).
What is a management decision? →FAC accepted this audit on June 30, 2025 — management decision was due December 30, 2025.
FAC accepted this audit on June 27, 2024 — management decision was due December 27, 2024.
FAC accepted this audit on May 21, 2024 — management decision was due November 21, 2024.
FAC accepted this audit on March 8, 2023 — management decision was due September 8, 2023.
FAC accepted this audit on November 8, 2021 — management decision was due May 8, 2022.
Finding: 2020-002 Information on the federal programs- CFDA 14.871: Section 8 Housing Choice Voucher Federal Agency- United States Department of Housing and Urban Development (HUD) Pass-through entity- N/A Criteria- In accordance with 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirements For Federal Awards, Appendix XI, under the Special Tests and Provisions (Utility Allowance Schedule) the Authority must maintain an up-to-date utility allowance schedule. The Housing Authority 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 of fuel since the last time the utility allowance schedule was revised. Condition- The utility allowances for trash were understated by $10 for units with 0 to 2 bedrooms, $16 for units with 3 to 5 bedrooms, and $22 for units with 6 to 8 bedrooms. This relates to the utility allowance schedule that was effective as of November 1, 2018. Voucher holders would have been subject to this utility allowance schedule until they recertified in the fiscal year ended September 30, 2020. This would impact voucher holders who were responsible for paying for trash. Also, a portion of vouchers holders were subject to a sewer service charge. Utility allowances for water and sewer were overstated by $12 per bedroom type for potentially 16 voucher holders how lived in the area subject to the sewer service charge. Cause- Rates that were bi-monthly rates were input into the utility allowance calculation as a monthly rate then were divided in half again in separate calculation causing trash utility allowances to be half of the monthly billed amount. The sewer service charge was incorrectly input in the worksheet to calculate utility allowances as $20 instead of $12. Effect or potential effect- The potential effect is that tenants pay more towards rent which will cause a corresponding decrease in the amount of housing assistance payments for each impacted tenant. Questioned costs- Due to the nature of agreements with landlords, tenants may receive allowances for all, some or none of the various utility expenses. Therefore, it is not readily determinable the impact of the errors noted above for the calculations trash and sewer allowances. Context- During our review of the utility allowance rates that the Housing Authority applied for 2020 certifications, we noted that the trash rates were doubled that of the prior year and a flat sewer charge for one service area (out of 3 service areas) was overstated by $12. Identification as a repeat finding: N/A Recommendation- The Housing Authority should implement procedures to ensure there is a proper review of the annual update of the utility allowances. Management should also review utility allowances received by voucher holders to determine if any funds are due voucher holders and if any funds are due to HUD for excess rental assistance.
Show full finding ▾Hide full finding ▴Finding: 2020-002 Information on the federal programs- CFDA 14.871: Section 8 Housing Choice Voucher Federal Agency- United States Department of Housing and Urban Development (HUD) Pass-through entity- N/A Criteria- In accordance with 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirements For Federal Awards, Appendix XI, under the Special Tests and Provisions (Utility Allowance Schedule) the Authority must maintain an up-to-date utility allowance schedule. The Housing Authority 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 of fuel since the last time the utility allowance schedule was revised. Condition- The utility allowances for trash were understated by $10 for units with 0 to 2 bedrooms, $16 for units with 3 to 5 bedrooms, and $22 for units with 6 to 8 bedrooms. This relates to the utility allowance schedule that was effective as of November 1, 2018. Voucher holders would have been subject to this utility allowance schedule until they recertified in the fiscal year ended September 30, 2020. This would impact voucher holders who were responsible for paying for trash. Also, a portion of vouchers holders were subject to a sewer service charge. Utility allowances for water and sewer were overstated by $12 per bedroom type for potentially 16 voucher holders how lived in the area subject to the sewer service charge. Cause- Rates that were bi-monthly rates were input into the utility allowance calculation as a monthly rate then were divided in half again in separate calculation causing trash utility allowances to be half of the monthly billed amount. The sewer service charge was incorrectly input in the worksheet to calculate utility allowances as $20 instead of $12. Effect or potential effect- The potential effect is that tenants pay more towards rent which will cause a corresponding decrease in the amount of housing assistance payments for each impacted tenant. Questioned costs- Due to the nature of agreements with landlords, tenants may receive allowances for all, some or none of the various utility expenses. Therefore, it is not readily determinable the impact of the errors noted above for the calculations trash and sewer allowances. Context- During our review of the utility allowance rates that the Housing Authority applied for 2020 certifications, we noted that the trash rates were doubled that of the prior year and a flat sewer charge for one service area (out of 3 service areas) was overstated by $12. Identification as a repeat finding: N/A Recommendation- The Housing Authority should implement procedures to ensure there is a proper review of the annual update of the utility allowances. Management should also review utility allowances received by voucher holders to determine if any funds are due voucher holders and if any funds are due to HUD for excess rental assistance.
Recommendation- The Housing Authority should implement procedures to ensure there is a proper review of the annual update of the utility allowances Condition- The utility allowances for trash were understated by $10 for units with 0 to 2 bedrooms, $16 for units with 3 to 5 bedrooms, and $22 for units with 6 to 8 bedrooms. This relates to the utility allowance schedule that was effective as of November 1, 2018. Voucher holders would have been subject to this utility allowance schedule until they recertified in the fiscal year ended September 30, 2020. This would impact voucher holders who were responsible for paying for trash. Also, a portion of vouchers holders were subject to a sewer service charge. Utility allowances for water and sewer were overstated by $12 per bedroom type for potentially 16 voucher holders how lived in the area subject to the sewer service charge. Questioned costs- Due to the nature of agreements with landlords, tenants may receive allowances for all, some or none of the various utility expenses. Therefore, it is not readily determinable the impact of the errors noted above for the calculations trash and sewer allowances. Action Taken: We concur with the recommendation but will go on record stating that most units we are paying HAP payments for doing include water, sewer, and trash in the rental amount. Corrective Action: 1. A review of FY 2021 and FY 2022 utility allowances has been conducted to ensure that rates are accurate. 2. This review was put in place in October 2021 upon approval of the FY 2021 Utility Allowances, and the utility allowances for FY 2022 have been rechecked and verified. Contact Person: Teri Anania, Executive Director of Housing Authority of Island County, 360-678-4181
FAC accepted this audit on November 29, 2020 — management decision was due May 29, 2021.
FAC accepted this audit on June 25, 2019 — management decision was due December 25, 2019.
FAC accepted this audit on June 26, 2018 — management decision was due December 26, 2018.
FAC accepted this audit on June 28, 2017 — management decision was due December 28, 2017.
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