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The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Washington State Department of Commerce to determine whether it complied with Lead Hazard Control grant project eligibility, matching contribution, administrative cost, and American Recovery and Reinvestment Act reporting requirements. This audit is part of the national mandate to monitor grant activities funded by the Recovery Act. We selected Washington State because it received the largest Lead Hazard Control grant in the State.
The State generally complied with Lead Hazard Control grant and Recovery Act requirements. It selected eligible projects, provided adequate matching contributions, and accurately reported Recovery Act grant information. However, the State charged excessive administration costs to the Recovery Act Lead Hazard Control grant. This condition occurred because the State misunderstood the grant’s administrative cost limitation requirement. As a result, $202,824 was unavailable for lead-based paint control.
We recommend that HUD require the State to reimburse the U.S. Treasury the $202,824 spent on excessive administrative costs and provide training on the Lead Hazard Control grant program to the State