The Housing Authority of Snohomish County says accounting lapses noted in a recent state audit are internal and haven’t kept anybody out of affordable or subsidized housing.
One finding from the state auditor’s office came was that the housing authority failed to check a database of suspended and ineligible organizations when it contracted with the YWCA for a project using federal grant money. The state called that a “significant deficiency,” even though the YWCA is not on the list.
“It had not occurred to us because the Y is a large nonprofit that receives lots of federal funds, just like we do,” housing authority executive director Bob Davis said.
The housing authority always checks the federal database for outside contractors and now will do so for all partners, Davis said.
The report, released last month, evaluated housing authority accounting practices from mid-2007 through mid-2008.
In a separate finding, the auditor’s office faulted the housing authority for not adequately reviewing its financial reports. The authority also missed a state deadline for submitting an annual financial report for the second year in a row.
The auditor’s office called those issues “material weaknesses.” Internal-control problems caused the housing authority to misstate assets by millions of dollars, according to the state.
“That’s an accounting technicality,” Davis said. “It didn’t affect any ability to deliver services. There were no misplaced funds.”
The quasi-governmental housing authority is guided by a six-member board of commissioners. It owns and manages more than 2,000 units of subsidized and affordable housing, according to its Web site. The agency also directs social programs.
Noah Haglund: 425-339-3465, nhaglund@heraldnet.com.
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