Finding 402344 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-06-25
Audit: 309911
Organization: Community Roots Housing (WA)
Auditor: Clark Nuber P S

AI Summary

  • Core Issue: There is a significant deficiency in internal controls regarding compliance with housing quality inspections for the Section 8 Project-Based Cluster.
  • Impacted Requirements: Failure to document housing quality inspections as mandated by 24 CFR Part 982, specifically sections 982.404 and 982.405.
  • Recommended Follow-Up: Implement stronger internal controls to ensure all required inspections are conducted and properly documented.

Finding Text

Finding 2023-001 Significant deficiency in internal control over compliance related to special tests and provisions. Federal Agency: U.S. Department of Housing and Urban Development Program Title: Section 8 Project-Based Cluster Assistance Listing Number: 14.195 Pass-through Grantor: Housing Authority of the City of Bremerton Project Number: WA19L000022 Award Period: 2023 Federal Agency: U.S. Department of Housing and Urban Development Program Title: Section 8 Project-Based Cluster Pass-Through Grantor: State of Washington Assistance Listing Number: 14.195 Project Number: 15-46221-004 Award Period: 2023 Criteria Under the requirements of the 24 Code of Federal Regulations (CFR) Part 982, property owners must perform housing quality inspections at the time of initial occupancy and at least annually thereafter to ensure that the units are decent, safe, and sanitary. Condition/Context for Evaluation Out of 12 units selected for testing, 2 units did not have documentation supporting that a housing quality standards inspection was completed during 2023. Effect or Potential Effect CRH did not comply with 24 CFR section 982.404 and 982.405, which requires units to be inspected to ensure they meet Housing Quality Standards. Questioned Costs Not applicable. Cause Internal controls were not operating effectively to ensure that all unit inspections were performed and documented. Repeat Finding No Recommendation We recommend that the Organization implement the necessary internal controls to ensure annual inspections are performed and documented. Views of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Categories

Special Tests & Provisions HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 402343 2023-001
    Significant Deficiency
  • 402345 2023-001
    Significant Deficiency
  • 402346 2023-001
    Significant Deficiency
  • 402347 2023-001
    Significant Deficiency
  • 402348 2023-001
    Significant Deficiency
  • 402349 2023-001
    Significant Deficiency
  • 402350 2023-001
    Significant Deficiency
  • 978785 2023-001
    Significant Deficiency
  • 978786 2023-001
    Significant Deficiency
  • 978787 2023-001
    Significant Deficiency
  • 978788 2023-001
    Significant Deficiency
  • 978789 2023-001
    Significant Deficiency
  • 978790 2023-001
    Significant Deficiency
  • 978791 2023-001
    Significant Deficiency
  • 978792 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $1.00M
14.218 Community Development Block Grants/entitlement Grants $830,000
14.230 Rental Rehabilitation Program $122,088
21.027 Coronavirus State and Local Fiscal Recovery Funds $69,326
14.195 Section 8 Housing Assistance Payments Program $52,971