Finding Text
FINDING 2023-007
FEDERAL PROGRAM COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) (ASSISTANCE LISTING NO. 14.228) DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PASS THROUGH STATE HOUSING DEPARTMENT
CATEGORY INTERNAL CONTROL/COMPLIANCE- SIGNIFICANT DEFICIENCIES
NONCOMPLIANCE REPORTING
TOPIC SENTENCE Lack of controls over filing of quarterly financial reports.
CONDITIONS As part of the evaluation of the Reporting Test we requested evidence of the filing of the Quarterly Report for the fiscal year 2022-2023. In the audit of the program, we noted the following:
The quarterly reports for the following quarters had not been filed to the Puerto Rico Department of Housing:
July-September 2022
October- December 2022
January-March 2023
April-June 2023
CRITERIA The delegation of funds contract signed between the Department of Housing of Puerto Rico and the Municipality establishes in its twentieth clause that the subrecipient is obliged to submit to the recipient the quarterly and annual reports for the projects developed with CDBG funds.
CAUSE The Community Development Block Grant Program (CDBG) are not maintaining adequate internal controls to guarantee timely filing of quarterly reports.
EFFECT The Municipality is exposed to the risk that the Puerto Rico Department of Housing halt the process of requisitioning funds from the administration line, affecting the operation of the program and the use of funds.
RECOMMENDATION We recommend that the program establish internal control measures to ensure that the program's quarterly reports are submitted on time to the Puerto Rico Department of Housing.
QUESTIONED COST None
PRIOR YEAR Not Applicable
VIEWS OF RESPONSIBLE
OFFICIALS AND PLANNED
CORRECTIVE ACTION We accept the finding
RESPONSIBLE PERSON Mr. Jose González-Program Director 787-894-9191