Finding Text
We performed different audit testing to validate compliance with the Terms and Conditions that the Bank as Subrecipient shall comply with applicable Puerto Rico Department of Housing’s policies and guidelines. From a total of 1,600 SBF Program Recovery Grants (the grants) awarded to business applicants during the year ended June 30, 2023, in the amount of $80,195,314, we performed a grant award test to validate various compliance requirements for the grant. We selected a sample of sixty-one (61) grants awarded as follows: eighteen (18) awarded for working capital purposes, thirty-four (34) awarded for working capital and equipment and nine (9) grants awarded for the purchase of equipment, in the total amount of $2,896,504. In addition, we performed a closeout test to validate procedures surrounding expenditure review and closeout of the grant. We selected a sample of sixty-one (61) cases, in the total amount of $2,942,184 from a total of 317 grants awarded amounting to $15,294,128 for which closeout procedures were completed during the year ended June 30, 2023.
We noted the following: Amount Awarded Computed Incorrectly, Duplicated Grant Disbursements and Incorrect Data in Grant Management System of Record for the Grants. Management has not consistently applied procedures as described in the Bank’s policies for underwriting, duplication of benefits, expenditure review and closeout.