EIN: 916000976
UEI: LTK4P8KABWF8
Data as of August 20, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 23, 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 March 23, 2026, which was (151 days ago).
What is a management decision? →2024-003 HUD Required Reporting Criteria HUD regulations and federal requirements mandate timely submission of the Financial Assessment Subsystem for Public Housing Agencies (FASSPHA), the Data Collection Form (SF-SAC) for the Single Audit, and the Section Eight Management Assessment Program (SEMAP) reports. These submissions are critical for ensuring compliance, enabling oversight, and facilitating the allocation of federal funding. Condition It was identified during the audit that the Authority did not meet the prescribed deadlines for submitting the FASSPHA, and SF-SAC reports to federal agencies. This delay in reporting has been noted for the first time in the 2021 audit findings. Context This lapse was identified against a backdrop of the Authority traditionally maintaining a good track record with reporting. The recent delays mark a departure from their usual compliance practices and have occurred amidst organizational changes and challenges, including staff turnover and procedural adjustments within the finance department. Cause The failure to meet reporting deadlines can be attributed to a combination of factors, including major staff turnover, which led to a loss of institutional knowledge and expertise critical for the preparation and submission of these reports. These challenges were compounded by inefficiencies in the Authority’s internal processes for report preparation and submission. Effect The failure to submit these reports on time undermines the Authority’s compliance with federal regulations, potentially affecting its eligibility for future funding and leading to reputational damage. It may also delay financial and operational decisions by HUD that depend on the analysis of these reports. Recommendations It is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well-versed in HUD reporting requirements; (2) Establish a contingency plan for maintaining continuity of operations in the event of key personnel turnover or unavailability; and (3) Revise and streamline internal reporting processes to improve efficiency and reliability in meeting HUD's reporting deadlines. Questioned Costs None. Management Views Management acknowledges the audit findings and is committed to taking corrective actions.
Finding ref number: 2024-003 Finding Caption: Housing Voucher Cluster HUD Required Reporting Name, address, and telephone of Authority contact person: Michael Bishop 2900 NE 10th St. Renton, WA 98056 425-226-1850 x 317 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Prior RHA Administration failed to complete the Single Audit and submitted it to the FASSPHA and SF-SAC websites. The deadline for RHA to submit its Single Audit is September 30th of each year. The last completed Single Audit prior to the new CEO coming on board was done in 2019. The State of Washington had been working on Anticipated date to complete the corrective action: Anticipate FY2024 to be submitted by September 30, 2025, and the CEO will ensure RHA’s Fee Accountant submits the PHA’s Unaudited FDS to FASSPHA by the deadline of March of each year and ensure the Single Audit is completed and submitted on time, per the required HUD deadline of September 30th of each year.
2023-003
2024-004 Eligibility Controls and Compliance Criteria As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516) Condition Incomplete documentation of tenant’s income eligibility for participation in the Housing Choice Voucher Program. During the sampling of forty (40) tenant files we noted: (A) seven (7) did not include utility allowance calculation; (B) two (2) 50058 forms did not agree with the Housing Assistance Payments made to landlords; (C) two (2) tenant rents did not fall between 90% and 110% of the HUD FMR for the areas; and (D) four (4) of the selected tenants did not have a file that could be located during our testing. Context The Authority manages over 600 Housing Choice Vouchers and 600 Port-In Voucher during the year. We sampled 40 tenant files for multiple compliance requirements. Cause The failure to meet compliance requirements noted above can be attributed to a combination of factors, including major staff turnover, which led to a loss of institutional knowledge and expertise critical for the preparation and maintain the required documentation in tenant files. Effect Compliance with income limits and eligibility could not be demonstrated for sampled tenants. Therefore, ineligible individuals may be receiving HAP assistance and /or HAP is being incorrectly calculated based on unverified incomes. Recommendations It is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well-versed in HUD requirements and (2) Revise and streamline internal processes to improve efficiency and reliability in meeting HUD's requirements for determining tenant eligibility. Questioned Costs The exact monetary impact needs further investigation to determine the amount for the period of non-compliance. Management Views We agree with this finding and have outlined our plan of action in our Corrective Action Plan.
Finding ref number: 2024-004 Finding Caption: Housing Voucher Cluster Eligibility Controls and Compliance Name, address, and telephone of Authority contact person: Michael Bishop 2900 NE 10th St. Renton, WA 98056 425-226-1850 x 317 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the forty (40) tenant files sampled by the auditors, seven (7) files did not have utility allowances calculated; two (2) files had 50058’s that did not agree with the HAP payments being paid to the landlords and four (4) files could not be located for testing. RHA had sent all of its paper files to a scanning company to have everything scanned and saved back onto our server for safekeeping. RHA has gone paperless and will not keep paper tenant files again. Some of the files that the auditors requested were either not scanned yet or we could not find. Staff continue to be trained and educated on the importance of ensuring all documents on in the digital tenant file with backup documentation for income / asset verification as well as ensure that the 50058 UA matches the 52667 form and scanned into their digital file of the voucher holder. These issues should begin to decrease as we cycle through and get all paperwork caught up. 2024 Annual Reexams were behind due to staffing issues in 2023 and into 2024. Finding ref number: 2024-004 Finding Caption: Housing Voucher Cluster Eligibility Controls and Compliance Name, address, and telephone of Authority contact person: Michael Bishop 2900 NE 10th St. Renton, WA 98056 425-226-1850 x 317 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the forty (40) tenant files sampled by the auditors, seven (7) files did not have utility allowances calculated; two (2) files had 50058’s that did not agree with the HAP payments being paid to the landlords and four (4) files could not be located for testing. RHA had sent all of its paper files to a scanning company to have everything scanned and saved back onto our server for safekeeping. RHA has gone paperless and will not keep paper tenant files again. Some of the files that the auditors requested were either not scanned yet or we could not find. Staff continue to be trained and educated on the importance of ensuring all documents on in the digital tenant file with backup documentation for income / asset verification as well as ensure that the 50058 UA matches the 52667 form and scanned into their digital file of the voucher holder. These issues should begin to decrease as we cycle through and get all paperwork caught up. 2024 Annual Reexams were behind due to staffing issues in 2023 and into 2024. Finding ref number: 2024-004 Finding Caption: Housing Voucher Cluster Eligibility Controls and Compliance Name, address, and telephone of Authority contact person: Michael Bishop 2900 NE 10th St. Renton, WA 98056 425-226-1850 x 317 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the forty (40) tenant files sampled by the auditors, seven (7) files did not have utility allowances calculated; two (2) files had 50058’s that did not agree with the HAP payments being paid to the landlords and four (4) files could not be located for testing. RHA had sent all of its paper files to a scanning company to have everything scanned and saved back onto our server for safekeeping. RHA has gone paperless and will not keep paper tenant files again. Some of the files that the auditors requested were either not scanned yet or we could not find. Staff continue to be trained and educated on the importance of ensuring all documents on in the digital tenant file with backup documentation for income / asset verification as well as ensure that the 50058 UA matches the 52667 form and scanned into their digital file of the voucher holder. These issues should begin to decrease as we cycle through and get all paperwork caught up. 2024 Annual Reexams were behind due to staffing issues in 2023 and into 2024. Finding ref number: 2024-004 Finding Caption: Housing Voucher Cluster Eligibility Controls and Compliance Name, address, and telephone of Authority contact person: Michael Bishop 2900 NE 10th St. Renton, WA 98056 425-226-1850 x 317 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the forty (40) tenant files sampled by the auditors, seven (7) files did not have utility allowances calculated; two (2) files had 50058’s that did not agree with the HAP payments being paid to the landlords and four (4) files could not be located for testing. RHA had sent all of its paper files to a scanning company to have everything scanned and saved back onto our server for safekeeping. RHA has gone paperless and will not keep paper tenant files again. Some of the files that the auditors requested were either not scanned yet or we could not find. Staff continue to be trained and educated on the importance of ensuring all documents on in the digital tenant file with backup documentation for income / asset verification as well as ensure that the 50058 UA matches the 52667 form and scanned into their digital file of the voucher holder. These issues should begin to decrease as we cycle through and get all paperwork caught up. 2024 Annual Reexams were behind due to staffing issues in 2023 and into 2024. Finding ref number: 2024-004 Finding Caption: Housing Voucher Cluster Eligibility Controls and Compliance Name, address, and telephone of Authority contact person: Michael Bishop 2900 NE 10th St. Renton, WA 98056 425-226-1850 x 317 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the forty (40) tenant files sampled by the auditors, seven (7) files did not have utility allowances calculated; two (2) files had 50058’s that did not agree with the HAP payments being paid to the landlords and four (4) files could not be located for testing. RHA had sent all of its paper files to a scanning company to have everything scanned and saved back onto our server for safekeeping. RHA has gone paperless and will not keep paper tenant files again. Some of the files that the auditors requested were either not scanned yet or we could not find. Staff continue to be trained and educated on the importance of ensuring all documents on in the digital tenant file with backup documentation for income / asset verification as well as ensure that the 50058 UA matches the 52667 form and scanned into their digital file of the voucher holder. These issues should begin to decrease as we cycle through and get all paperwork caught up. 2024 Annual Reexams were behind due to staffing issues in 2023 and into 2024. Finding ref number: 2024-004 Finding Caption: Housing Voucher Cluster Eligibility Controls and Compliance Name, address, and telephone of Authority contact person: Michael Bishop 2900 NE 10th St. Renton, WA 98056 425-226-1850 x 317 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the forty (40) tenant files sampled by the auditors, seven (7) files did not have utility allowances calculated; two (2) files had 50058’s that did not agree with the HAP payments being paid to the landlords and four (4) files could not be located for testing. RHA had sent all of its paper files to a scanning company to have everything scanned and saved back onto our server for safekeeping. RHA has gone paperless and will not keep paper tenant files again. Some of the files that the auditors requested were either not scanned yet or we could not find. Staff continue to be trained and educated on the importance of ensuring all documents on in the digital tenant file with backup documentation for income / asset verification as well as ensure that the 50058 UA matches the 52667 form and scanned into their digital file of the voucher holder. These issues should begin to decrease as we cycle through and get all paperwork caught up. 2024 Annual Reexams were behind due to staffing issues in 2023 and into 2024. Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the forty (40) tenant files sampled by the auditors, seven (7) files did not have utility allowances calculated; two (2) files had 50058’s that did not agree with the HAP payments being paid to the landlords and four (4) files could not be located for testing. RHA had sent all of its paper files to a scanning company to have everything scanned and saved back onto our server for safekeeping. RHA has gone paperless and will not keep paper tenant files again. Some of the files that the auditors requested were either not scanned yet or we could not find. Staff continue to be trained and educated on the importance of ensuring all documents on in the digital tenant file with backup documentation for income / asset verification as well as ensure that the 50058 UA matches the 52667 form and scanned into their digital file of the voucher holder. These issues should begin to decrease as we cycle through and get all paperwork caught up. 2024 Annual Reexams were behind due to staffing issues in 2023 and into 2024.
2023-004
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on May 22, 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 November 22, 2025, which was (272 days ago).
What is a management decision? →2023‐002 HQS Enforcement Questioned Costs The exact monetary impact needs further investigation to determine the amount of HAP that should have been abated for the period of non‐compliance. Criteria HUD requires that all units under the Housing Choice Vouchers Program meet specific Housing Quality Standards (HQS). In cases of failed inspections, timely re‐inspections are mandatory, and if compliance is not achieved, abatement of Housing Assistance Payments (HAP) or voucher cancellation is required. US Department of Housing and Urban Development Program Name Housing Voucher Cluster ALN (s) N Special Tests Condition During the audit, it was noted that in seven (7) instances, a unit that failed its HQS inspection did not undergo a subsequent re‐inspection or no inspection was documented. Consequently, the required abatement of HAP or cancellation of the housing voucher was not executed. Context This finding represents a potentially systemic issue within the Housing Voucher Cluster program, as it was identified in seven (7) files tested out of a sample of eight (8) cases. It highlights a need for more rigorous enforcement and monitoring of HQS compliance. Cause The non‐compliance appears to stem from oversight or procedural lapses in the enforcement of HQS within the Housing Voucher Cluster program. This may be due to inadequate training, monitoring, or failure to adhere to established protocols. Effect This non‐compliance undermines the integrity of the Housing Choice Vouchers Program and may lead to tenants living in substandard conditions. It also represents a risk of improper use of federal funds and can impact the credibility and effectiveness of the program. Recommendations Implement more stringent procedures for monitoring HQS compliance, including timely reinspection and enforcement of HAP abatement or voucher cancellation. Enhance training for staff involved in the HQS process to ensure a thorough understanding of compliance requirements. Establish a system of regular audits to identify and rectify lapses in HQS enforcement promptly. Management Views The auditee acknowledges the deficiency in enforcing Housing Quality Standards (HQS) as highlighted in the finding. In response to this issue, the management commits to implementing a comprehensive corrective action plan.
Prior RHA staff that were handling the Inspection Scheduling were not abating the HAP when units failed and did not keep up or track the amount of time between failed inspections and re-inspections to ensure that it was completed timely. As of September 2024, we have a new Landlord Liaison, who is also a new Inspection Coordinator, that is tracking everything on a spreadsheet. Part of FY2024 was not monitored for Failed Inspections and Abatements but is now being tracked and monitored by the Inspection Coordinator and her supervisor, the Director of Facilities and Development along with the CEO. FY2025 should be completely clean of issues dealing with HQS Compliance.
2022-002
2023‐003 HUD Required Reporting Questioned Costs None It is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well‐versed in HUD reporting requirements; (2) Establish a contingency plan for maintaining continuity of operations in the event of key personnel turnover or unavailability; and (3) Revise and streamline internal reporting processes to improve efficiency and reliability in meeting HUD's reporting deadlines. Management Views Management acknowledges the audit findings and is committed to taking corrective actions. US Department of Housing and Urban Development Program Name Housing Voucher Cluster ALN (s) L Reporting Criteria HUD regulations and federal requirements mandate timely submission of the Financial Assessment Subsystem for Public Housing Agencies (FASSPHA), the Data Collection Form (SF‐SAC) for the Single Audit, and the Section Eight Management Assessment Program (SEMAP) reports. These submissions are critical for ensuring compliance, enabling oversight, and facilitating the allocation of federal funding. Condition It was identified during the audit that the Authority did not meet the prescribed deadlines for submitting the FASSPHA, and SF‐SAC reports to federal agencies. This delay in reporting has been noted for the first time in the 2021 audit findings. Context This lapse was identified against a backdrop of the Authority traditionally maintaining a good track record with reporting. The recent delays mark a departure from their usual compliance practices and have occurred amidst organizational changes and challenges, including staff turnover and procedural adjustments within the finance department. Cause The failure to meet reporting deadlines can be attributed to a combination of factors, including major staff turnover, which led to a loss of institutional knowledge and expertise critical for the preparation and submission of these reports. These challenges were compounded by inefficiencies in the Authority’s internal processes for report preparation and submission. Effect The failure to submit these reports on time undermines the Authority’s compliance with federal regulations, potentially affecting its eligibility for future funding and leading to reputational damage. It may also delay financial and operational decisions by HUD that depend on the analysis of these reports. Recommendation: It is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well‐versed in HUD reporting requirements; (2) Establish a contingency plan for maintaining continuity of operations in the event of key personnel turnover or unavailability; and (3) Revise and streamline internal reporting processes to improve efficiency and reliability in meeting HUD's reporting deadlines. Management Views Management acknowledges the audit findings and is committed to taking corrective actions.
Prior RHA administrative staff were not getting the PHA’s Single Audit completed nor submitted by the deadline. RHA was 3 years behind when the new CEO took over on March 31, 2023. FY2020, FY2021 and FY2022 were not completed and submitted. By the time that these three were caught up, completed and submitted, that pushed FY2023 Audit to be late. The audit for FY2023 should be completed by the end of April 2025 and then we will be on task to start FY2024 in May and completed by the deadline of September 30, 2025. Then, RHA will stay on task and get these completed within its deadline timeline.
2022-003
2023‐004 Eligibility Controls and Compliance Management Views We agree with this finding and have outlined our plan of action in our corrective action plan. Questioned Costs The exact monetary impact needs further investigation to determine the amount for the period of non‐compliance. Cause The failure to meet compliance requirements noted above can be attributed to a combination of factors, including major staff turnover, which led to a loss of institutional knowledge and expertise critical for the preparation and maintain the required documentation in tenant files. Effect Compliance with income limits and eligibility could not be demonstrated for sampled tenants. Therefore, ineligible individuals may be receiving HAP assistance and /or HAP is being incorrectly Recommendations It is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well‐versed in HUD requirements and (2) Revise and streamline internal processes to improve efficiency and reliability in meeting HUD's requirements for determing tenant eligibility. Criteria As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516) Condition Incomplete documentation of tenant’s income eligibility for participation in the Housing Choice Voucher Program. During the sampling of 40 tenant files we noted: (1) 29 did not include utility allowance calculation; (2) 9 50058 forms did not agree with the housing assistance payments made to landlords; (3) 22 tenant rents did not fall between 90% and 110% of the HUD FMR for the areas. Context The Authority manages over 600 Housing Choice Vouchers and 600 Port‐In Voucher during the year. We sampled 40 tenant files for multiple compliance requirements.Questioned Costs The exact monetary impact needs further investigation to determine the amount for the period of non‐compliance. Questioned Costs The exact monetary impact needs further investigation to determine the amount for the period of non‐compliance. Cause The failure to meet compliance requirements noted above can be attributed to a combination of factors, including major staff turnover, which led to a loss of institutional knowledge and expertise critical for the preparation and maintain the required documentation in tenant files. Effect Compliance with income limits and eligibility could not be demonstrated for sampled tenants. Therefore, ineligible individuals may be receiving HAP assistance and /or HAP is being incorrectly Recommendations It is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well‐versed in HUD requirements and (2) Revise and streamline internal processes to improve efficiency and reliability in meeting HUD's requirements for determing tenant eligibility. Questioned Costs The exact monetary impact needs further investigation to determine the amount for the period of non‐compliance. Management Views We agree with this finding and have outlined our plan of action in our corrective action plan.
Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the 40 tenant files sampled by the auditors, 29 files did not have correct utility allowances calculated; 9 files had 50058’s that did not agree with the HAP payments being paid to the landlords and 22 files had rents that did not fall between 90% and 110% of the HUD FMR for the areas. Staff have been replaced and there are no original HCV staff left that were at RHA when the new CEO took over on March 1, 2023. Staff are consistently being trained every week for a minimum of 1 hour a week for 52 weeks out of the year. An HCV Director has been added to supervise the HCV Staff and audits of the files are being completed by the Director of Housing along with the CEO. These issues should be limited and not commonly found by Auditors during future audits.
2023‐005 New Tenant Eligibility Controls and Compliance Questioned Costs The exact monetary impact needs further investigation to determine the amount for the period of non‐compliance. Management Views We agree with this finding and have outlined our plan of action in our corrective action plan. Cause The failure to meet compliance requirements noted above can be attributed to a combination of factors, including major staff turnover, which led to a loss of institutional knowledge and expertise critical for the preparation and maintain the required documentation in tenant files. Effect Compliance with income limits and eligibility could not be demonstrated for sampled tenants. Therefore, ineligible individuals may be receiving HAP assistance and /or HAP is being incorrectly calculated based on unverified incomes. Recommendations It is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well‐versed in HUD requirements and (2) Revise and streamline internal processes to improve efficiency and reliability in meeting HUD's requirements for determing tenant eligibility. Criteria As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516) Condition Incomplete documentation of tenant’s initial income eligibility for participation in the Housing Choice Voucher Program. During the sampling of 6 tenant files we noted: (1) 5 contained no income calculation or supporting documentation for calculations; (2) 3 had no 50058 forms in the tenant file; (3) all 6 selected could not be traced back to the waitlist to determine proper entrance to the program. Context The Authority manages over 600 Housing Choice Vouchers with about 60‐70 new move‐ins a year. We sampled 6 tenant files for multiple compliance requirements. Cause The failure to meet compliance requirements noted above can be attributed to a combination of factors, including major staff turnover, which led to a loss of institutional knowledge and expertise critical for the preparation and maintain the required documentation in tenant files. Effect Compliance with income limits and eligibility could not be demonstrated for sampled tenants. Therefore, ineligible individuals may be receiving HAP assistance and /or HAP is being incorrectly calculated based on unverified incomes. Recommendations It is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well‐versed in HUD requirements and (2) Revise and streamline internal processes to improve efficiency and reliability in meeting HUD's requirements for determing tenant eligibility. Questioned Costs The exact monetary impact needs further investigation to determine the amount for the period of non‐compliance. Management Views We agree with this finding and have outlined our plan of action in our corrective action plan.
The auditors reviewed 6 tenant files for initial admission criteria being met, such as Income calculations. Of the 6 files, 5 did not contain supporting documentation of how the income was calculated. Again, those staff are not present coming into FY2024. Of the 6 files reviewed, 3 also did not have 50058’s in the tenant file. And all 6 files could not be traced back to the waitlist to determine proper entrance to the program. In response to the tracking of the waitlist not being tracked on new admissions, there have not been any new HCV vouchers issued from the waitlist since the end of FY2022. RHA has an over utilization of voucher budget authority and has not issued new vouchers from that waiting list nor has RHA opened that waiting list up. RHA administration does not expect to open this waiting list in FY2024 nor FY2025. At the tail end of FY2023, RHA sent the PBV waiting lists over to the contracted third-party management company to track for RHA. Currently, that third-party management company is Allied Residential Management. Halfway through FY2024, RHA converted over to a different Housing Software which has better tracking reports than the prior software. Again, RHA has hired new staff and removed old staff that did not want to learn correct compliance procedures with the HCV department. RHA has a strong team coming into FY2025 now. FY2024 had staff in/out until we found good staff that wanted to learn and retain them.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 16, 2024. 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 March 16, 2025, which was (523 days ago).
What is a management decision? →Finding 2022-002 Housing Voucher Cluster – Special Tests – HQS Enforcement – Noncompliance and Significant Deficiency in Internal Controls Criteria: HUD requires that all units under the Housing Choice Vouchers Program meet specific Housing Quality Standards (HQS). In cases of failed inspections, timely re-inspections are mandatory, and if compliance is not achieved, abatement of Housing Assistance Payments (HAP) or voucher cancellation is required. Condition: During the audit, it was noted that in eight (8) instances, a unit that failed its HQS inspection did not undergo a subsequent re-inspection or no inspection was documented. Consequently, the required abatement of HAP or cancellation of the housing voucher was not executed. Cause: The non-compliance appears to stem from oversight or procedural lapses in the enforcement of HQS within the Housing Voucher Cluster program. This may be due to inadequate training, monitoring, or failure to adhere to established protocols. Effect or Potential Effect: This non-compliance undermines the integrity of the Housing Choice Vouchers Program and may lead to tenants living in substandard conditions. It also represents a risk of improper use of federal funds and can impact the credibility and effectiveness of the program. Questioned Costs: The exact monetary impact needs further investigation to determine the amount of HAP that should have been abated for the period of non-compliance. Context: This finding represents a potentially systemic issue within the Housing Voucher Cluster program, as it was identified in eight (8) files tested out of a sample of forty (40) cases. It highlights a need for more rigorous enforcement and monitoring of HQS compliance. Recommendations: Implement more stringent procedures for monitoring HQS compliance, including timely re-inspections and enforcement of HAP abatement or voucher cancellation. Enhance training for staff involved in the HQS process to ensure a thorough understanding of compliance requirements. Establish a system of regular audits to identify and rectify lapses in HQS enforcement promptly. Responsible Official's Response: The auditee acknowledges the deficiency in enforcing Housing Quality Standards (HQS) as highlighted in the finding. In response to this issue, the management commits to implementing a comprehensive corrective action plan.
n response to this finding regarding non-compliance in Housing Quality Standards (HQS) enforcement, the new management team at the Authority has developed a focused corrective action plan. This plan includes comprehensive staff training on HUD regulations and HQS compliance, with a completion target of September 2024. Concurrently, our CEO will oversee the revision and implementation of enhanced HQS monitoring procedures, aiming for completion by September 2024. This involves updating inspection protocols, instituting regular internal audits for compliance, and establishing clear procedures for re-inspections, HAP abatement, and voucher cancellations. Recognizing the oversight of the previous management, the new team is committed to rectifying these issues and ensuring ongoing compliance. We will maintain thorough documentation of all actions taken and provide regular updates on the progress. The HCV Coordinator will be responsible for ongoing compliance monitoring and reporting, ensuring that the program adheres to HUD's Housing Quality Standards and effectively serves its participants. This approach reaffirms our dedication to upholding the integrity and effectiveness of the Housing Voucher Cluster programs
2021-002
Finding 2022-003 AL Number and Title: Various—Housing Voucher Cluster – Reporting – Noncompliance and Significant Deficiency Criteria: HUD regulations and federal requirements mandate timely submission of the Financial Assessment Subsystem for Public Housing Agencies (FASSPHA), the Data Collection Form (SF-SAC) for the Single Audit, and the Section Eight Management Assessment Program (SEMAP) reports. These submissions are critical for ensuring compliance, enabling oversight, and facilitating the allocation of federal funding. Condition: It was identified during the audit that the Authority did not meet the prescribed deadlines for submitting the FASSPHA, SF-SAC, and SEMAP reports to federal agencies. This delay in reporting has been noted for the first time in the 2021 audit findings. Cause: The failure to meet reporting deadlines can be attributed to a combination of factors, including major staff turnover, which led to a loss of institutional knowledge and expertise critical for the preparation and submission of these reports. Additionally, a change in auditor who had been instrumental in ensuring timely submissions in the past, with the new auditor becoming unreachable, further exacerbating the situation. These challenges were compounded by inefficiencies in the Authority’s internal processes for report preparation and submission. Effect or Potential Effect: The failure to submit these reports on time undermines the Authority's compliance with federal regulations, potentially affecting its eligibility for future funding and leading to reputational damage. It may also delay financial and operational decisions by HUD that depend on the analysis of these reports. Questioned Costs: None. Context: This lapse was identified against a backdrop of the Authority traditionally maintaining a good track record with reporting. The recent delays mark a departure from their usual compliance practices and have occurred amidst organizational changes and challenges, including staff turnover and procedural adjustments within the finance department. Recommendation: To mitigate this issue, it is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well-versed in HUD reporting requirements; (2) Establish a contingency plan for maintaining continuity of operations in the event of key personnel turnover or unavailability; and (3) Revise and streamline internal reporting processes to improve efficiency and reliability in meeting HUD's reporting deadlines. Responsible Official's Response and Corrective Action Planned: Management acknowledges the audit findings and is committed to taking corrective actions.
The management overseeing the process has been completely replaced to ensure a fresh perspective and unwavering dedication to implementing robust internal controls. To address the shortcomings identified in Finding 2022-003, the Authority commits to a targeted action plan aimed at ensuring timely compliance with reporting requirements. Central to our approach is the engagement of a fee accountant, recognized for expertise in HUD reporting and public housing financial management. This specialist will be tasked with overseeing and streamlining our reporting processes. By leveraging this expertise, we aim to quickly rectify past reporting lapses and ensure future submissions are timely and compliant with HUD requirements. The new fee accountant will conduct a comprehensive review of our current reporting mechanisms, identify bottlenecks, and implement best practices tailored to our operations. This decisive action, centered around the expertise of the newly appointed fee accountant, demonstrates our commitment to enhancing our financial management practices and aligning with HUD's reporting expectations. Through these measures, we anticipate not only meeting HUD's deadlines but also setting a new standard for operational excellence within our Authority.
2021-003
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on April 2, 2024. 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 October 2, 2024, which was (688 days ago).
What is a management decision? →Finding 2021-002 Housing Voucher Cluster – Special Tests – HQS Enforcement – Noncompliance and Significant Deficiency in Internal Controls Criteria: HUD requires that all units under the Housing Choice Vouchers Program meet specific Housing Quality Standards (HQS). In cases of failed inspections, timely re-inspections are mandatory, and if compliance is not achieved, abatement of Housing Assistance Payments (HAP) or voucher cancellation is required. Condition: During the audit, it was noted that in one instance, a unit that failed its HQS inspection did not undergo a subsequent re-inspection. Consequently, the required abatement of HAP or cancellation of the housing voucher was not executed. Cause: The non-compliance appears to stem from oversight or procedural lapses in the enforcement of HQS within the Housing Voucher Cluster program. This may be due to inadequate training, monitoring, or failure to adhere to established protocols. Effect or Potential Effect: This non-compliance undermines the integrity of the Housing Choice Vouchers Program and may lead to tenants living in substandard conditions. It also represents a risk of improper use of federal funds and can impact the credibility and effectiveness of the program. Questioned Costs: The exact monetary impact needs further investigation to determine the amount of HAP that should have been abated for the period of non-compliance. Context: This finding represents a potentially systemic issue within the Housing Voucher Cluster program, as it was identified in 20% of the sampled cases. It highlights a need for more rigorous enforcement and monitoring of HQS compliance. Recommendations: Implement more stringent procedures for monitoring HQS compliance, including timely reinspections and enforcement of HAP abatement or voucher cancellation. Enhance training for staff involved in the HQS process to ensure a thorough understanding of compliance requirements. Establish a system of regular audits to identify and rectify lapses in HQS enforcement promptly. Responsible Official's Response: The auditee acknowledges the deficiency in enforcing Housing Quality Standards (HQS) as highlighted in the finding. In response to this issue, the management commits to implementing a comprehensive corrective action plan.
Finding 2021-002 a. Comments on the Finding and Each Recommendation: We concur with the finding and agree with the recommendations. b. Action(s) Taken or Planned on the Finding In response to this finding regarding non-compliance in Housing Quality Standards (HQS) enforcement, the new management team at the Authority has developed a focused corrective action plan. This plan includes comprehensive staff training on HUD regulations and HQS compliance, with a completion target of March 2024. Concurrently, our CEO and Director of Programs Administration will oversee the revision and implementation of enhanced HQS monitoring procedures, aiming for completion by March 2024. This involves updating inspection protocols, instituting regular internal audits for compliance, and establishing clear procedures for re-inspections, HAP abatement, and voucher cancellations. Recognizing the oversight of the previous management, the new team is committed to rectifying these issues and ensuring ongoing compliance. We will maintain thorough documentation of all actions taken and provide regular updates on the progress. The HCV Coordinator will be responsible for ongoing compliance monitoring and reporting, ensuring that the program adheres to HUD's Housing Quality Standards and effectively serves its participants. This approach reaffirms our dedication to upholding the integrity and effectiveness of the Housing Voucher Cluster programs.
2020-002
Finding 2021-003 AL Number and Title: Various—Housing Voucher Cluster – Reporting – Noncompliance and Significant Deficiency Criteria: HUD regulations and federal requirements mandate timely submission of the Financial Assessment Subsystem for Public Housing Agencies (FASSPHA), the Data Collection Form (SF-SAC) for the Single Audit, and the Section Eight Management Assessment Program (SEMAP) reports. These submissions are critical for ensuring compliance, enabling oversight, and facilitating the allocation of federal funding. Condition: It was identified during the audit that the Authority did not meet the prescribed deadlines for submitting the FASSPHA, SF-SAC, and SEMAP reports to federal agencies. This delay in reporting has been noted for the first time in the current audit period. Cause: The failure to meet reporting deadlines can be attributed to a combination of factors, including major staff turnover, which led to a loss of institutional knowledge and expertise critical for the preparation and submission of these reports. Additionally, a change in auditor who had been instrumental in ensuring timely submissions in the past, with the new auditor becoming unreachable, further exacerbating the situation. These challenges were compounded by inefficiencies in the Authority’s internal processes for report preparation and submission. Effect or Potential Effect: The failure to submit these reports on time undermines the Authority's compliance with federal regulations, potentially affecting its eligibility for future funding and leading to reputational damage. It may also delay financial and operational decisions by HUD that depend on the analysis of these reports. Questioned Costs: None. Context: This lapse was identified against a backdrop of the Authority traditionally maintaining a good track record with reporting. The recent delays mark a departure from their usual compliance practices and have occurred amidst organizational changes and challenges, including staff turnover and procedural adjustments within the finance department. Recommendation: To mitigate this issue, it is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well-versed in HUD reporting requirements; (2) Establish a contingency plan for maintaining continuity of operations in the event of key personnel turnover or unavailability; and (3) Revise and streamline internal reporting processes to improve efficiency and reliability in meeting HUD's reporting deadlines. Responsible Official's Response and Corrective Action Planned: Management acknowledges the audit findings and is committed to taking corrective actions.
Finding 2021-003 a. Comments on the Finding and Each Recommendation: Management agrees with both the finding and recommendations. b. Action(s) Taken or Planned on the Finding The management overseeing the process has been completely replaced to ensure a fresh perspective and unwavering dedication to implementing robust internal controls. To address the shortcomings identified in Finding 2021-003, the Authority commits to a targeted action plan aimed at ensuring timely compliance with reporting requirements. Central to our approach is the engagement of a fee accountant, recognized for expertise in HUD reporting and public housing financial management. This specialist will be tasked with overseeing and streamlining our reporting processes. By leveraging this expertise, we aim to quickly rectify past reporting lapses and ensure future submissions are timely and compliant with HUD requirements. The new fee accountant will conduct a comprehensive review of our current reporting mechanisms, identify bottlenecks, and implement best practices tailored to our operations. This decisive action, centered around the expertise of the newly appointed fee accountant, demonstrates our commitment to enhancing our financial management practices and aligning with HUD's reporting expectations. Through these measures, we anticipate not only meeting HUD's deadlines but also setting a new standard for operational excellence within our Authority.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on November 21, 2023. 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 May 21, 2024, which was (822 days ago).
What is a management decision? →The Housing Authority did not have adequate controls in place to ensure compliance with federal program requirements. Assistance Listing Number and Title: 14.871 – Section 8 Housing Choice Vouchers 14.871 – COVID-19 Section 8 Housing Choice Vouchers 14.879 – Mainstream Vouchers Federal Grantor Name: U.S. Department of Housing and Urban Development Federal Award/Contract Number: S-0088V Pass-through Entity Name: N/A Pass-through Award/Contract Number: N/A Known Questioned Cost Amount: $58,569 Background During 2020, the Housing Authority spent $8,052,481 under the Housing Voucher Cluster program, which includes the Section 8 Housing Choice Vouchers program (HCVP) and the Mainstream Vouchers (MV) program. The HCVP provides rental assistance to help families with very low incomes afford decent, safe, and sanitary rental housing. The HCVP is administered by local public housing agencies (PHAs) authorized under state law to operate housing programs within an area or jurisdiction. The MV program enables families, for whom the head, spouse, or co-head is a person with disabilities, to lease affordable private housing of their choice. The Department of Housing and Urban Development (HUD) enters into Annual Contributions Contracts (ACCs) with the Housing Authority, allowing HUD to provide funds so the Authority can administer the program locally. Federal regulations require recipients of federal funds to establish and maintain internal controls that ensure compliance with program requirements. These controls include understanding program requirements and monitoring the effectiveness of established controls. Reasonable rent The Housing Authority must maintain records to document the basis for its determination that the rental amount set by the property owner is reasonable. The Housing Authority must determine if the rent is reasonable at the time of initial leasing, and at the contract anniversary if there is a five percent decrease in the published Fair Market Rent in effect 60 days before the contract anniversary. Housing quality standards enforcement In Notice PIH 2020–05, published on April 10, 2020, HUD exercised its authority under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to establish waivers and administrative flexibilities to provide relief to PHAs in response to the COVID-19 pandemic. Subsequent revision PIH 2020-33 (issued in November 2020) allowed PHAs to delay biennial inspections for both tenant-based and project-based voucher units and instead rely on owners’ certifications that they have no reasonable basis to have knowledge that life-threatening conditions exist in their unit or any units in question. These waivers apply to Housing Quality Standards (HQS) inspection requirements but do not waive the HQS enforcement requirements. For housing units that fail to meet quality standards, the Housing Authority must require owners to correct any cited life-threatening deficiencies within 24 hours of inspections and all other deficiencies within 30 calendar days of inspections or within a specified Housing Authority-approved extension. If owners do not correct the cited deficiencies within the specified correction period, the Housing Authority must stop assistance payments beginning no later than the first of the month following the specified correction period, or it must terminate the HAP contract. Activities allowed / allowable costs / operating transfers and administrative fees HAP may not be used to cover administrative expenses, nor may HAP be loaned, advanced, or transferred to other component units or other programs. Description of Condition Reasonable rent The Housing Authority did not have controls in place to ensure it determined rental amounts were reasonable at the time of initial leasing. Housing quality standards enforcement The Housing Authority did not have effective internal controls in place for ensuring compliance with the program’s HQS enforcement requirements. Specifically, the Housing Authority did not ensure owners corrected cited life-threatening deficiencies within 24 hours of inspections. Activities allowed / allowable costs / operating transfers and administrative fees The Housing Authority did not have controls in place for ensuring it only transferred funds out of the program for allowable uses. We consider these deficiencies in internal controls to be material weaknesses that led to material noncompliance. These issues were not reported as a finding in the prior audit. Cause of Condition Reasonable rent The Housing Authority moved the tenants out of one of their PHA-owned units for an extended period to rehabilitate the properties. Upon moving the tenants back into the units, the Housing Authority established new leases with the tenants and did not perform rent reasonableness checks as required. Housing quality standards enforcement Program staff believed they were not required to follow-up on failed inspections because they thought the inspection waivers issued from HUD also allowed them to waive following up on failed inspections. Activities allowed / allowable costs / operating transfers and administrative fees The Housing Authority experienced turnover in several key positions responsible for managing operating transfers. Current employees said they did not know why the operating transfers were made. Housing Authority staff and management relied on the former staff to perform grant-related activities and comply with all program requirements without adequate oversight. Effect of Condition and Questioned Costs Reasonable rent We used statistical sampling to test 29 tenant files and found that nine lacked documentation of rent reasonableness determinations. Additionally, we determined reasonable rent determinations were not performed for all 134 Housing Authority-owned units before tenants were housed and received their first assistance payment. Without rent reasonableness determinations, the Housing Authority cannot assure granting agencies that it has effective processes in place to ensure compliance with program requirements. Housing quality standards enforcement The Housing Authority did not have documentation showing it followed-up on two of the six failed inspections in 2020 with cited life-threatening deficiencies and required the owners to correct the deficiencies within 24 hours of inspections. Additionally, the Housing Authority did not stop assistance payments beginning no later than the first of the month following the specified correction period or terminate the HAP contract. Because the Housing Authority did not follow up on HQS deficiencies within the required time frame, it cannot demonstrate that the housing units met enforcement requirements. Activities allowed / allowable costs / operating transfers and administrative fees The audit identified an operating transfer of $58,569 out of the HCVP into the Mainstream Vouchers program that was an unallowable use of the funds. As a result, we are questioning these costs. Recommendations Reasonable rent We recommend the Housing Authority strengthen internal controls to ensure it performs reasonable rent determinations at the time of initial leasing in compliance with program requirements. Housing quality standards enforcement We recommend the Housing Authority strengthen internal controls to follow-up on failed inspections with cited life-threatening HQS deficiencies and require owners to correct them timely, as the program requires. Activities allowed / allowable costs / operating transfers and administrative fees We recommend the Housing Authority improve internal controls to ensure it only charges valid and allowable costs to the program. We further recommend the Housing Authority ensure operating transfers out of the HCVP are used only for activities allowed under the program. Housing Authority’s Response The Housing Authority of the City of Renton (RHA) agrees with this finding and has taken and will continue to take steps to create Internal Controls to ensure compliance for program compliance, especially on the HCV or Housing Choice Voucher program. SEMAP spreadsheets and guidance have been created to monitor and audit the 14 Program Indicators. Internal Controls will also be created to ensure that Independent Audits for the Housing Authority as a whole are completed Annually and submitted to HUD FASS and Federal Audit Clearinghouse by the 9th month after its FYE date of December 31st. Auditor’s Remarks We appreciate the Housing Authority’s commitment to resolve this finding and thank the Housing Authority for its cooperation and assistance during the audit. We will review corrective action taken during the next audit. Applicable Laws and Regulations Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 516, Audit findings, establishes reporting requirements for audit findings. Title 2 CFR Part 200, Uniform Guidance, section 303, Internal controls, describes the requirements for auditees to maintain internal controls over federal programs and comply with federal program requirements. The American Institute of Certified Public Accountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, Compliance Audits, paragraph 11. Title 24 CFR Part 982, Section 8 Tenant-Based Assistance: Housing Choice Voucher Program, Section 152, Administrative fee, outlines the purpose and use of administrative fees. Title 24 CFR Part 982, Section 8 Tenant-Based Assistance: Housing Choice Voucher Program, Section 158, Program accounts and records, establishes requirements over program accounts and records. Title 24 CFR Part 982, Section 8 Tenant-Based Assistance: Housing Choice Voucher Program, section 404, Maintenance: Owner and family responsibility; PHA remedies, establishes enforcement requirements for housing quality standards. Title 24 CFR Part 982, Section 8 Tenant-based assistance: Housing Choice Voucher Program, Section 507, establishes the requirements over rent reasonableness.
CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Housing Authority of the City of Renton January 1, 2020 through December 31, 2020 This schedule presents the corrective action planned by the Housing Authority for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2020-002 Finding caption: The Housing Authority did not have adequate controls in place to ensure compliance with federal program requirements. Name, address, and telephone of Authority contact person: Michael S. Bishop 600 S.W. 39th Street, Suite 250 Renton, WA 98056 Corrective action the auditee plans to take in response to the finding: The Housing Authority of the City of Renton (RHA) agrees with this finding and has taken and will continue to take steps to create Internal Controls to ensure compliance for program compliance, especially on the HCV or Housing Choice Voucher program. SEMAP spreadsheets and guidance have been created to monitor and audit the 14 Program Indicators. Internal Controls will also be created to ensure that Independent Audits for the Housing Authority as a whole are completed Annually and submitted to HUD FASS and Federal Audit Clearinghouse by the 9th month after its FYE date of December 31st. SAO Finding: Transfer from HCV to Mainstream The Unaudited FDS had $58,569 in an Interfund receivable and $3,776,607 in an Interfund payable. The $58,569 was offset against the interfund payable for the audited FDS. The amount referenced by the finding had no relationship to the Mainstream Program. Anticipated date to complete the corrective action: 12/31/2023
2020-002 The Housing Authority did not have adequate controls in place to ensure compliance with federal program requirements. Assistance Listing Number and Title: 14.871 ? Section 8 Housing Choice Vouchers 14.871 ? COVID-19 Section 8 Housing Choice Vouchers 14.879 ? Mainstream Vouchers Federal Grantor Name: U.S. Department of Housing and Urban Development Federal Award/Contract Number: S-0088V Pass-through Entity Name: N/A Pass-through Award/Contract Number: N/A Known Questioned Cost Amount: $58,569 Background During 2020, the Housing Authority spent $8,052,481 under the Housing Voucher Cluster program, which includes the Section 8 Housing Choice Vouchers program (HCVP) and the Mainstream Vouchers (MV) program. The HCVP provides rental assistance to help families with very low incomes afford decent, safe, and sanitary rental housing. The HCVP is administered by local public housing agencies (PHAs) authorized under state law to operate housing programs within an area or jurisdiction. The MV program enables families, for whom the head, spouse, or co-head is a person with disabilities, to lease affordable private housing of their choice. The Department of Housing and Urban Development (HUD) enters into Annual Contributions Contracts (ACCs) with the Housing Authority, allowing HUD to provide funds so the Authority can administer the program locally. Office of the Washington State Auditor sao.wa.gov Federal regulations require recipients of federal funds to establish and maintain internal controls that ensure compliance with program requirements. These controls include understanding program requirements and monitoring the effectiveness of established controls. Reasonable rent The Housing Authority must maintain records to document the basis for its determination that the rental amount set by the property owner is reasonable. The Housing Authority must determine if the rent is reasonable at the time of initial leasing, and at the contract anniversary if there is a five percent decrease in the published Fair Market Rent in effect 60 days before the contract anniversary. Housing quality standards enforcement In Notice PIH 2020?05, published on April 10, 2020, HUD exercised its authority under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to establish waivers and administrative flexibilities to provide relief to PHAs in response to the COVID-19 pandemic. Subsequent revision PIH 2020-33 (issued in November 2020) allowed PHAs to delay biennial inspections for both tenant-based and project-based voucher units and instead rely on owners? certifications that they have no reasonable basis to have knowledge that life-threatening conditions exist in their unit or any units in question. These waivers apply to Housing Quality Standards (HQS) inspection requirements but do not waive the HQS enforcement requirements. For housing units that fail to meet quality standards, the Housing Authority must require owners to correct any cited life-threatening deficiencies within 24 hours of inspections and all other deficiencies within 30 calendar days of inspections or within a specified Housing Authority-approved extension. If owners do not correct the cited deficiencies within the specified correction period, the Housing Authority must stop assistance payments beginning no later than the first of the month following the specified correction period, or it must terminate the HAP contract. Activities allowed / allowable costs / operating transfers and administrative fees HAP may not be used to cover administrative expenses, nor may HAP be loaned, advanced, or transferred to other component units or other programs. Description of Condition Reasonable rent The Housing Authority did not have controls in place to ensure it determined rental amounts were reasonable at the time of initial leasing. Housing quality standards enforcement The Housing Authority did not have effective internal controls in place for ensuring compliance with the program?s HQS enforcement requirements. Specifically, the Housing Authority did not ensure owners corrected cited life-threatening deficiencies within 24 hours of inspections. Activities allowed / allowable costs / operating transfers and administrative fees The Housing Authority did not have controls in place for ensuring it only transferred funds out of the program for allowable uses. We consider these deficiencies in internal controls to be material weaknesses that led to material noncompliance. These issues were not reported as a finding in the prior audit. Cause of Condition Reasonable rent The Housing Authority moved the tenants out of one of their PHA-owned units for an extended period to rehabilitate the properties. Upon moving the tenants back into the units, the Housing Authority established new leases with the tenants and did not perform rent reasonableness checks as required. Housing quality standards enforcement Program staff believed they were not required to follow-up on failed inspections because they thought the inspection waivers issued from HUD also allowed them to waive following up on failed inspections. Activities allowed / allowable costs / operating transfers and administrative fees The Housing Authority experienced turnover in several key positions responsible for managing operating transfers. Current employees said they did not know why the operating transfers were made. Housing Authority staff and management relied on the former staff to perform grant-related activities and comply with all program requirements without adequate oversight. Effect of Condition and Questioned Costs Reasonable rent We used statistical sampling to test 29 tenant files and found that nine lacked documentation of rent reasonableness determinations. Additionally, we determined reasonable rent determinations were not performed for all 134 Housing Authority-owned units before tenants were housed and received their first assistance payment. Without rent reasonableness determinations, the Housing Authority cannot assure granting agencies that it has effective processes in place to ensure compliance with program requirements. Housing quality standards enforcement The Housing Authority did not have documentation showing it followed-up on two of the six failed inspections in 2020 with cited life-threatening deficiencies and required the owners to correct the deficiencies within 24 hours of inspections. Additionally, the Housing Authority did not stop assistance payments beginning no later than the first of the month following the specified correction period or terminate the HAP contract. Because the Housing Authority did not follow up on HQS deficiencies within the required time frame, it cannot demonstrate that the housing units met enforcement requirements. Activities allowed / allowable costs / operating transfers and administrative fees The audit identified an operating transfer of $58,569 out of the HCVP into the Mainstream Vouchers program that was an unallowable use of the funds. As a result, we are questioning these costs. Recommendations Reasonable rent We recommend the Housing Authority strengthen internal controls to ensure it performs reasonable rent determinations at the time of initial leasing in compliance with program requirements. Housing quality standards enforcement We recommend the Housing Authority strengthen internal controls to follow-up on failed inspections with cited life-threatening HQS deficiencies and require owners to correct them timely, as the program requires. Activities allowed / allowable costs / operating transfers and administrative fees We recommend the Housing Authority improve internal controls to ensure it only charges valid and allowable costs to the program. We further recommend the Housing Authority ensure operating transfers out of the HCVP are used only for activities allowed under the program. Housing Authority?s Response The Housing Authority of the City of Renton (RHA) agrees with this finding and has taken and will continue to take steps to create Internal Controls to ensure compliance for program compliance, especially on the HCV or Housing Choice Voucher program. SEMAP spreadsheets and guidance have been created to monitor and audit the 14 Program Indicators. Internal Controls will also be created to ensure that Independent Audits for the Housing Authority as a whole are completed Annually and submitted to HUD FASS and Federal Audit Clearinghouse by the 9th month after its FYE date of December 31st. Auditor?s Remarks We appreciate the Housing Authority?s commitment to resolve this finding and thank the Housing Authority for its cooperation and assistance during the audit. We will review corrective action taken during the next audit. Applicable Laws and Regulations Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 516, Audit findings, establishes reporting requirements for audit findings. Title 2 CFR Part 200, Uniform Guidance, section 303, Internal controls, describes the requirements for auditees to maintain internal controls over federal programs and comply with federal program requirements. The American Institute of Certified Public Accountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, Compliance Audits, paragraph 11. Title 24 CFR Part 982, Section 8 Tenant-Based Assistance: Housing Choice Voucher Program, Section 152, Administrative fee, outlines the purpose and use of administrative fees. Title 24 CFR Part 982, Section 8 Tenant-Based Assistance: Housing Choice Voucher Program, Section 158, Program accounts and records, establishes requirements over program accounts and records. Title 24 CFR Part 982, Section 8 Tenant-Based Assistance: Housing Choice Voucher Program, section 404, Maintenance: Owner and family responsibility; PHA remedies, establishes enforcement requirements for housing quality standards. Title 24 CFR Part 982, Section 8 Tenant-based assistance: Housing Choice Voucher Program, Section 507, establishes the requirements over rent reasonableness.
Finding ref number: 2020-002 Finding caption: The Housing Authority did not have adequate controls in place to ensure compliance with federal program requirements. Name, address, and telephone of Authority contact person: Michael S. Bishop 600 S.W. 39th Street, Suite 250 Renton, WA 98056 Corrective action the auditee plans to take in response to the finding: The Housing Authority of the City of Renton (RHA) agrees with this finding and has taken and will continue to take steps to create Internal Controls to ensure compliance for program compliance, especially on the HCV or Housing Choice Voucher program. SEMAP spreadsheets and guidance have been created to monitor and audit the 14 Program Indicators. Internal Controls will also be created to ensure that Independent Audits for the Housing Authority as a whole are completed Annually and submitted to HUD FASS and Federal Audit Clearinghouse by the 9th month after its FYE date of December 31st. SAO Finding: Transfer from HCV to Mainstream The Unaudited FDS had $58,569 in an Interfund receivable and $3,776,607 in an Interfund payable. The $58,569 was offset against the interfund payable for the audited FDS. The amount referenced by the finding had no relationship to the Mainstream Program. Anticipated date to complete the corrective action: 12/31/2023
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