Finding Text
Finding Reference 2025-003 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 2025-002. 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 2025-002. Questioned Costs: None. Prior Year Finding: This finding is similar to prior year finding 2022-003, 2023-003 and 2024-003. Views of Responsible Officials and Planned Corrective Action: We concur with the audit finding. As expressed in the corrective action related to Finding 2025-002, we are going to identify budgetary resources to engage another staff to work with the capital assets subsidiary ledger completeness. Implementation Date: June 30, 2026 Responsible Person: Mrs. Miraisa David Esparra Finance Department Director