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.