Finding Text
COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF COAMO Schedule of Findings and Questioned Costs For the Fiscal Year Ended June 30, 2022 Section III ? Federal Award Findings and Questioned Costs Finding Reference: 2022-003 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 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 2022-002. 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 2022-002. 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 2022-002. Questioned Costs: None Prior Year Finding: This finding is similar to prior year finding 2021-003. Views of Responsible Officials and Planned Correctiv Action: During the fiscal year 2021-2022 the Community Development Block Grants ? State?s Program administered by the Municipality of Coamo expended $360,628. Of such total expended, $132,062 were related to capital expenditures; $21,749 for the installation of an elevator in a building whose construction is in progress, and $110,313 for municipal streets paving as specified in the approved proposal. But, as expressed in the corrective action related to Finding 2022-002, we are going to identify budgetary resources to engage another staff to work with the capital assets subsidiary ledger completeness. Implementation Date: During the Fiscal Year 2023-2024 Responsible Person: Mrs. Miraisa David Esparra Finance Department Director