Finding 1170385 (2024-007)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2026-01-23

AI Summary

  • Core Issue: Property records for real estate purchased with federal funds did not indicate the federal interest, violating regulations.
  • Impacted Requirements: Section 1303.46 (b) (1) mandates that a notice of federal interest must be recorded when federal funds are used for property acquisition.
  • Recommended Follow-Up: Ensure compliance by filing the required notice promptly for any future property purchases with federal funds.

Finding Text

During our test that property records related to a real properties improved, with federal funds, did not disclose that it was acquired with such funds. Section 1303.46 (b) (1) of the 45 Code of Federal Regulations establishes that If a grantee uses federal funds to purchase real property or a facility, excluding modular units, appurtenant to real property, it must record a notice of federal interest in the official real property records for the jurisdiction where the facility is or will be located. The grantee must file the notice of federal interest as soon as it uses Head Start funds to either fully or partially purchase a facility or real property where a facility will be constructed or as soon as it receives permission from the responsible HHS official to use Head Start funds to continue purchase on a facility.

Corrective Action Plan

The Municipality, as a Head Start program grant recipient, used Program funds to construct a new administrative facility. Therefore, instructions were given to the Municipality's legal counsel, to file a notice of federal interest as set forth in the 45 CFR, Part 1303.46.

Categories

Equipment & Real Property Management Procurement, Suspension & Debarment

Programs in Audit

ALN Program Name Expenditures
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $6.87M
93.356 HEAD START DISASTER RECOVERY $4.33M
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $1.14M
10.558 CHILD AND ADULT CARE FOOD PROGRAM $167,998
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $159,013
20.505 METROPOLITAN TRANSPORTATION PLANNING AND STATE AND NON-METROPOLITAN PLANNING AND RESEARCH $157,383
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $66,640
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $49,386
93.600 HEAD START $29,846
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $25,541
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $25,227
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $23,935
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $2,480
97.030 COMMUNITY DISASTER LOANS $690
21.019 CORONAVIRUS RELIEF FUND $420