The Washington State Auditor’s Office says that the last audit of the Kalama Housing Authority says that the agency has been dangerously close to closing its doors. In the audit covering the time between July 1st, 2008 and June 30, 2010, state auditors say that the Kalama Housing Authority’s lack of unrestricted funds and non-compliance with federal regulations put the agency at risk of closing. Records show that Kalama Housing Authority’s unrestricted cash and equivalents went down from nearly $68,000 in 2006 to less than $10,000 in 2009. As of last year, they had only about $18,000 in unrestricted funds. After a site visit in April of last year, the Department of Housing and Urban Development found seven violations, including non-compliance with HUD policies, inaccurate records and procurement violations. It’s also been found that the Housing Authority has two significant cash liabilities, totaling nearly $50,000, with no way to pay for them. The Auditor’s Office blames the problem on frequent turnover, and a lack of training in HUD requirements. In its response, the Housing Authority says that they’re making policy changes, are implementing internal controls, and will revamp office protocol. The Kalama City Council has approved a $20,000 grant to the Housing Authority, and they also note the unique challenges that they face, as one of the smallest agencies of their type in the entire country. They reiterate their dedication to helping the low-income residents of Kalama, and pledge to resolve their financial issues.