The Washington State Auditor's Office says that an audit of the Kalama Housing Authority shows that the agency is at risk of losing federal funding.
In a two-year audit released Monday, state auditors noted that the KHA's financial condition "has declined significantly since 2006." As of June 30, 2010 - the final day in the audit period - the housing authority had only $17,849 in unrestricted funds available for operations, auditors said.
By comparison, KHA had $67,865 in 2006. Every year since then it had less cash available, the audit showed.
Frequent turnover in the executive director position and lack of training in HUD requirements, along with poor monitoring of expenditures by the staff and the Housing Authority Board, caused the financial condition, auditors concluded.
In its response to the state, the KHA has promised changes in policies and office protocol and implementation of internal controls. The Kalama City Council has approved a $20,000 grant to the KHA to assist in operations and maintenance, the KHA added.