Finding 1228269 (2023-007)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2026-08-28
Audit: 410006
Auditor: RSM

AI Summary

  • Core Issue: A significant number of documents were missing for closed projects, hindering the audit process.
  • Impacted Requirements: Sixteen workbooks, three closeout request letters, four applicant certifications, and one signed GAR letter were unavailable.
  • Recommended Follow-Up: Ensure all necessary documentation is collected and maintained for future audits to prevent similar issues.

Finding Text

From a sample of sixty (60) closed projects classified as Large and Small Projects, sixteen (16) of these projects the Workbook for examination of the following PWs were not available to be examined: From a sample of sixty (60) closed projects classified as Large and Small Projects, three (3) of these projects the Closeout Request Letter of the following PWs were not available to be examined: From a sample of sixty (60) closed projects classified as Large and Small Projects, four (4) of these projects the Certification from applicants of the following PWs were not available to be examined From a sample of sixty (60) closed projects classified as Large and Small Projects, one (1) of these projects signed GAR Letter of the following PW was not available to be examined:

Corrective Action Plan

Management Response: A. FEMA regulations (44 CFR §206.205) do not require detailed Workbooks for Small Projects, Nevertheless, COR3 is updating Chapter 12 of its internal policies and procedures to clarify documentation requirements for Small vs. Large Projects. B. Some Legacy Projects lacked Closeout Request Letters due to operational disruptions during Hurricanes Irma and María. These projects were moved to closeout to meet FEMA deadlines. COR3 will document and explain such legacy cases in internal records and ensure new projects follow updated closeout request protocols.C. While certifications are not required for Small Projects (Categories A & B) or for the specific Irene PW (P4) under FEMA guidance, COR3 acknowledges the need for clearer documentation standards and will implement a standardized checklist within its Small Project closeout workflows to ensure required documentation is consistently evaluated in accordance with FEMA category and disaster guidance. D and E. COR3 is enhancing its records tracking system to ensure all FEMA Closeout Letters (or documented exceptions) are stored and readily accessible during audits. Corrective Action Plan: COR3 will amend its internal policy to align with these regulatory requirements. Contact Person: Alejandro Olmedo, Closeout Director Anticipated Completion Date: Completed as of February 28, 2026

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1228264 2023-003
    Material Weakness Repeat
  • 1228265 2023-004
    Material Weakness Repeat
  • 1228266 2023-004
    Material Weakness Repeat
  • 1228267 2023-005
    Material Weakness Repeat
  • 1228268 2023-006
    Material Weakness Repeat
  • 1228270 2023-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $2.07B
97.039 HAZARD MITIGATION GRANT $42.15M
93.982 MENTAL HEALTH DISASTER ASSISTANCE AND EMERGENCY MENTAL HEALTH $2.67M
97.088 DISASTER ASSISTANCE PROJECTS $1.25M
97.047 BRIC: BUILDING RESILIENT INFRASTRUCTURE AND COMMUNITIES $48,916