Audit 347065

FY End
2024-06-30
Total Expended
$1.27B
Findings
4
Programs
5
Year: 2024 Accepted: 2025-03-20

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
529128 2024-002 Significant Deficiency Yes L
529129 2024-002 Significant Deficiency Yes L
1105570 2024-002 Significant Deficiency Yes L
1105571 2024-002 Significant Deficiency Yes L

Contacts

Name Title Type
FFNMUBT6WCM1 Juan R. Rivera Carrillo Auditee
7872742527 Jose Ernesto Diaz Martinez Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: A. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in Office of Management and Budget Circular A-87, State and Local Governments, or the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. C. Pass-through entity identifying numbers are presented where available and applicable. D. PRDH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: PRDH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activities of the Department of Housing of the Commonwealth of Puerto Rico (PRDH) under programs of the Federal government for the fiscal year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the PRDH, it is not intended to and does not present the financial position, changes in net position, or cash flows of the PRDH. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. PRDH reporting entity is defined in Note (1) (A) to the basic financial statements. All federal financial awards received directly from federal agency as well as federal financial awards passed-through other government agencies, if any, are included on the Schedule.
Title: SCHEDULE NOT IN AGREEMENT WITH OTHER FEDERAL AWARD REPORTS Accounting Policies: A. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in Office of Management and Budget Circular A-87, State and Local Governments, or the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. C. Pass-through entity identifying numbers are presented where available and applicable. D. PRDH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: PRDH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The information included in the Schedule may not fully agree with other federal award reports submitted directly to federal granting agencies.
Title: ASSISTANCE LISTING NUMBER Accounting Policies: A. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in Office of Management and Budget Circular A-87, State and Local Governments, or the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. C. Pass-through entity identifying numbers are presented where available and applicable. D. PRDH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: PRDH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Assistance Listing Number, formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five-digit number assigned in the awarding document for all Federal assistance award mechanisms, including Federal grants and cooperative agreements.
Title: COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE’S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII Accounting Policies: A. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in Office of Management and Budget Circular A-87, State and Local Governments, or the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. C. Pass-through entity identifying numbers are presented where available and applicable. D. PRDH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: PRDH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. This Community Development Block Grants/State’s Program and Non-Entitlement Grants in Hawaii (CDBG) program provides annual grants to municipalities to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderateincome persons. The CDBG program includes funds for the Community Development Block Grants/State’s Program and Non-Entitlement Grants in Hawaii – Disaster Recovery Program or CDBG-DR program which provides funds to rebuild areas affected by Presidentially declared disasters and provide crucial seed money to start the recovery process. Expenditures under this program and amounts pass-through to subrecipients for the year ended June 30, 2024 were as follows: Grant Number Passed Through to Subrecipients Total Federal Expenditures Community Development Block Grant/State Program and Non-Entitlement Grants in Hawaii: FY 2011 Grant B11DC7201 - 50 FY 2016 Grant B16DC7201 53,824 53,824 FY 2017 Grant B17DC7201 4,860,564 4,907,225 FY 2018 Grant B18DC7201 5,971,866 5,971,866 FY 2019 Grant B19DC7201 2,327,138 2,335,166 FY 2020 Grant B20DC7201 - 4,508,206 FY 2020 Grant – COVID 19 B20WC7201 10,859,413 11,035,785 FY 2021 Grant B21DC7201 - 4,599,699 FY 2021 Grant B21DZ7201 - 60,525 FY 2022 Grant B22DC7201 - 7,500 FY 2023 Grant B23DC7201 - 498,335 Sub Total Community Development Block Grant/State Program and Non- Entitlement Grants in Hawaii 24,072,805 33,978,181 CDBG Program – Disaster Recovery (Includes $27,279,333 of IPG Program Loans B17DM7201 497,163,813 1,234,188,973 $ 521,236,618 $ 1,268,167,154
Title: RELATIONSHIP TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS Accounting Policies: A. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in Office of Management and Budget Circular A-87, State and Local Governments, or the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. C. Pass-through entity identifying numbers are presented where available and applicable. D. PRDH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: PRDH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures of Federal awards are reported in PRDH’s Statement of Revenues, Expenditures and Changes in Fund Balance – Governmental Fund in the Community Development Block Grant Fund, Community Development Block Grant – Disaster Recovery Fund, Self-Contribution Fund, Sales and Acquisition Fund, and Other Governmental Funds columns.
Title: LOAN ADVANCES Accounting Policies: A. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in Office of Management and Budget Circular A-87, State and Local Governments, or the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. C. Pass-through entity identifying numbers are presented where available and applicable. D. PRDH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: PRDH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. For the fiscal year ended June 30, 2024, the PRDH disbursed $27,279,333 in loan advances under the CDBG-DR program (CFDA #14.228). All of the amount was expended on eligible program activities and is reported as expenditures in the Schedule of Expenditures of Federal Awards (SEFA). No loan advances remained unspent at year-end. Program income generated from loan repayments, if any, is reinvested in eligible activities in compliance with program guidelines.

Finding Details

FEDERAL PROGRAM (ALN – 14.228) COMMUNITY DEVELOPMENT BLOCK GRANT/STATE’S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII (ALN – 14.228) COVID19 – COMMUNITY DEVELOPMENT BLOCK GRANT/STATE’S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AWARD NUMBERS B-14-DC-7201 ~ B-19-DC-72-0001; B-17-DM-7201; B-18-DP-7201; B-20-DW-72-0001; B-21-DZ-72-0001; B-22-DC-7201; B-23-DC-7201 (Federal Award Years 2014-2024) COMPLIANCE REQUIREMENT REPORTING TYPE OF FINDING NONCOMPLIANCE AND SIGNIFICANT DEFICIENCY CRITERIA In accordance with 2 CFR Part 170, establishes that recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The non-Federal entity or Federal agency must report each obligating action to http://www.fsrs.gov. For subaward information, report no later than the end of the month following the month in which the obligation was made. STATEMENT OF CONDITION The audit revealed that the PRDH did not adhere to the FFATA reporting procedures during the fiscal year. We found that 24% (6 out of 25) required reports were submitted after the required due date. The summary of our tests results is: Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 25 0 6 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $732,071,556 $0 $3,387,966 $0 $0 QUESTIONED COSTS Not applicable. PERSPECTIVE INFORMATION A prior year finding related to this condition include the fact that all reports were submitted late after year end; this year we noted that 76% of the reports sample were filled on a timely manner by the program staff. STATEMENT OF CAUSE The PRDH staff have been implementing corrective actions regarding the compliance with this requirement related to the Federal Funding Accountability and Transparency Act (FFATA); however some reports related primarily to contract amendments were not filled on a timely manner. POSSIBLE ASSERTED EFFECT The PRDH is in non-compliance with the requirements to report through the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) platform. This condition does not allow for the transparency that this report requires. IDENTIFICATION OF REPEAT FINDING This is a repeat finding (Finding Reference No. 2023-002). RECOMMENDATIONS We recommend that the PRDH provide training and technical assistance to the personnel they designate to monitor all the funds delegation contracts that meet the requirements to be reported on the FSRS portal, and to be able to keep track of when they had to be reported, the date in which they submitted the information to the portal, and all the elements required to be submitted on the platform.
FEDERAL PROGRAM (ALN – 14.228) COMMUNITY DEVELOPMENT BLOCK GRANT/STATE’S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII (ALN – 14.228) COVID19 – COMMUNITY DEVELOPMENT BLOCK GRANT/STATE’S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AWARD NUMBERS B-14-DC-7201 ~ B-19-DC-72-0001; B-17-DM-7201; B-18-DP-7201; B-20-DW-72-0001; B-21-DZ-72-0001; B-22-DC-7201; B-23-DC-7201 (Federal Award Years 2014-2024) COMPLIANCE REQUIREMENT REPORTING TYPE OF FINDING NONCOMPLIANCE AND SIGNIFICANT DEFICIENCY CRITERIA In accordance with 2 CFR Part 170, establishes that recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The non-Federal entity or Federal agency must report each obligating action to http://www.fsrs.gov. For subaward information, report no later than the end of the month following the month in which the obligation was made. STATEMENT OF CONDITION The audit revealed that the PRDH did not adhere to the FFATA reporting procedures during the fiscal year. We found that 24% (6 out of 25) required reports were submitted after the required due date. The summary of our tests results is: Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 25 0 6 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $732,071,556 $0 $3,387,966 $0 $0 QUESTIONED COSTS Not applicable. PERSPECTIVE INFORMATION A prior year finding related to this condition include the fact that all reports were submitted late after year end; this year we noted that 76% of the reports sample were filled on a timely manner by the program staff. STATEMENT OF CAUSE The PRDH staff have been implementing corrective actions regarding the compliance with this requirement related to the Federal Funding Accountability and Transparency Act (FFATA); however some reports related primarily to contract amendments were not filled on a timely manner. POSSIBLE ASSERTED EFFECT The PRDH is in non-compliance with the requirements to report through the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) platform. This condition does not allow for the transparency that this report requires. IDENTIFICATION OF REPEAT FINDING This is a repeat finding (Finding Reference No. 2023-002). RECOMMENDATIONS We recommend that the PRDH provide training and technical assistance to the personnel they designate to monitor all the funds delegation contracts that meet the requirements to be reported on the FSRS portal, and to be able to keep track of when they had to be reported, the date in which they submitted the information to the portal, and all the elements required to be submitted on the platform.
FEDERAL PROGRAM (ALN – 14.228) COMMUNITY DEVELOPMENT BLOCK GRANT/STATE’S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII (ALN – 14.228) COVID19 – COMMUNITY DEVELOPMENT BLOCK GRANT/STATE’S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AWARD NUMBERS B-14-DC-7201 ~ B-19-DC-72-0001; B-17-DM-7201; B-18-DP-7201; B-20-DW-72-0001; B-21-DZ-72-0001; B-22-DC-7201; B-23-DC-7201 (Federal Award Years 2014-2024) COMPLIANCE REQUIREMENT REPORTING TYPE OF FINDING NONCOMPLIANCE AND SIGNIFICANT DEFICIENCY CRITERIA In accordance with 2 CFR Part 170, establishes that recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The non-Federal entity or Federal agency must report each obligating action to http://www.fsrs.gov. For subaward information, report no later than the end of the month following the month in which the obligation was made. STATEMENT OF CONDITION The audit revealed that the PRDH did not adhere to the FFATA reporting procedures during the fiscal year. We found that 24% (6 out of 25) required reports were submitted after the required due date. The summary of our tests results is: Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 25 0 6 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $732,071,556 $0 $3,387,966 $0 $0 QUESTIONED COSTS Not applicable. PERSPECTIVE INFORMATION A prior year finding related to this condition include the fact that all reports were submitted late after year end; this year we noted that 76% of the reports sample were filled on a timely manner by the program staff. STATEMENT OF CAUSE The PRDH staff have been implementing corrective actions regarding the compliance with this requirement related to the Federal Funding Accountability and Transparency Act (FFATA); however some reports related primarily to contract amendments were not filled on a timely manner. POSSIBLE ASSERTED EFFECT The PRDH is in non-compliance with the requirements to report through the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) platform. This condition does not allow for the transparency that this report requires. IDENTIFICATION OF REPEAT FINDING This is a repeat finding (Finding Reference No. 2023-002). RECOMMENDATIONS We recommend that the PRDH provide training and technical assistance to the personnel they designate to monitor all the funds delegation contracts that meet the requirements to be reported on the FSRS portal, and to be able to keep track of when they had to be reported, the date in which they submitted the information to the portal, and all the elements required to be submitted on the platform.
FEDERAL PROGRAM (ALN – 14.228) COMMUNITY DEVELOPMENT BLOCK GRANT/STATE’S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII (ALN – 14.228) COVID19 – COMMUNITY DEVELOPMENT BLOCK GRANT/STATE’S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AWARD NUMBERS B-14-DC-7201 ~ B-19-DC-72-0001; B-17-DM-7201; B-18-DP-7201; B-20-DW-72-0001; B-21-DZ-72-0001; B-22-DC-7201; B-23-DC-7201 (Federal Award Years 2014-2024) COMPLIANCE REQUIREMENT REPORTING TYPE OF FINDING NONCOMPLIANCE AND SIGNIFICANT DEFICIENCY CRITERIA In accordance with 2 CFR Part 170, establishes that recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The non-Federal entity or Federal agency must report each obligating action to http://www.fsrs.gov. For subaward information, report no later than the end of the month following the month in which the obligation was made. STATEMENT OF CONDITION The audit revealed that the PRDH did not adhere to the FFATA reporting procedures during the fiscal year. We found that 24% (6 out of 25) required reports were submitted after the required due date. The summary of our tests results is: Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 25 0 6 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $732,071,556 $0 $3,387,966 $0 $0 QUESTIONED COSTS Not applicable. PERSPECTIVE INFORMATION A prior year finding related to this condition include the fact that all reports were submitted late after year end; this year we noted that 76% of the reports sample were filled on a timely manner by the program staff. STATEMENT OF CAUSE The PRDH staff have been implementing corrective actions regarding the compliance with this requirement related to the Federal Funding Accountability and Transparency Act (FFATA); however some reports related primarily to contract amendments were not filled on a timely manner. POSSIBLE ASSERTED EFFECT The PRDH is in non-compliance with the requirements to report through the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) platform. This condition does not allow for the transparency that this report requires. IDENTIFICATION OF REPEAT FINDING This is a repeat finding (Finding Reference No. 2023-002). RECOMMENDATIONS We recommend that the PRDH provide training and technical assistance to the personnel they designate to monitor all the funds delegation contracts that meet the requirements to be reported on the FSRS portal, and to be able to keep track of when they had to be reported, the date in which they submitted the information to the portal, and all the elements required to be submitted on the platform.