Finding 1123956 (2024-003)

Significant Deficiency Repeat Finding
Requirement
F
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 351725
Organization: Municipality of Coamo (PR)

AI Summary

  • Core Issue: There is a significant deficiency in managing real property acquired with CDBG funds, leading to noncompliance with federal standards.
  • Impacted Requirements: Compliance with CFR 570.505 is required for properties funded by CDBG, which mandates proper tracking and evaluation for five years post-funding.
  • Recommended Follow-Up: Engage additional staff to ensure the completeness of the capital assets ledger by June 30, 2025, as part of corrective actions.

Finding Text

Finding Reference 2024-003 Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Agency: P.R. Department of Housing Federal Program: Community Development Block Grants/State’s Program and Non-Entitlement Grants in Hawaii (Assistance Listing No. 14.228) Requirement: Equipment and Real Property Management (F) Type of Finding: Significant Deficiency (SD), Instance of Noncompliance (NC) Statement of Condition: Section II – Financial Statements Findings – Finding Reference 2024-002. Criteria: CFR 570.505 Use of Real Property - The standards described in this section apply to real property within the recipient's control which was acquired or improved in whole or in part using CDBG funds in excess of $25,000. These standards shall apply from the date CDBG funds are first spent for the property until five years after closeout of an entitlement recipient's participation in the entitlement CDBG program or, with respect to other recipients, until five years after the closeout of the grant from which the assistance to the property was provided. Cause of Condition: Section II – Financial Statements Findings – Finding Reference 2024-002. Effect of Condition: We could not identify the property acquired with CDBG funds to realize the proper evaluation as required. Recommendation: Section II – Financial Statements Findings – Finding Reference 2024-002. Questioned Costs: None. Prior Year Finding: This finding is similar to prior year finding 2021-003, 2022-003 and 2023-003. Views of Responsible Officials and Planned Corrective Action: We concur with the audit finding. As expressed in the corrective action related to Finding 2024-002, we are going to identify budgetary resources to engage another staff to work with the capital assets subsidiary ledger completeness. Implementation Date: June 30, 2025 Responsible Person: Mrs. Miraisa David Esparra Finance Department Director

Categories

Equipment & Real Property Management Significant Deficiency

Other Findings in this Audit

  • 547514 2024-003
    Significant Deficiency Repeat
  • 547515 2024-003
    Significant Deficiency Repeat
  • 547516 2024-003
    Significant Deficiency Repeat
  • 547517 2024-004
    Significant Deficiency Repeat
  • 547518 2024-004
    Significant Deficiency Repeat
  • 547519 2024-004
    Significant Deficiency Repeat
  • 547520 2024-005
    Significant Deficiency
  • 547521 2024-006
    Significant Deficiency
  • 547522 2024-007
    Significant Deficiency
  • 1123957 2024-003
    Significant Deficiency Repeat
  • 1123958 2024-003
    Significant Deficiency Repeat
  • 1123959 2024-004
    Significant Deficiency Repeat
  • 1123960 2024-004
    Significant Deficiency Repeat
  • 1123961 2024-004
    Significant Deficiency Repeat
  • 1123962 2024-005
    Significant Deficiency
  • 1123963 2024-006
    Significant Deficiency
  • 1123964 2024-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $12.98M
97.030 Community Disaster Loans $1.98M
84.287 Twenty-First Century Community Learning Centers $1.14M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.07M
93.575 Child Care and Development Block Grant $956,383
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $379,562
14.871 Section 8 Housing Choice Vouchers $352,595
10.558 Child and Adult Care Food Program $246,386
20.509 Formula Grants for Rural Areas and Tribal Transit Program $84,117
93.591 Family Violence Prevention and Services/state Domestic Violence Coalitions $73,267
21.027 Coronavirus State and Local Fiscal Recovery Funds $58,148
10.433 Rural Housing Preservation Grants $30,629
97.039 Hazard Mitigation Grant $20,370