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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: 2022-004 Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Agency: P.R. Department of Housing Program: Community Development Block Grant/State?s Program and Non-Entitlement Grants in Hawaii (Assistance Listing No. 14.228) Compliance Requirement: Reporting ? Performance Reporting (L) Type of Finding: Significant Deficiency in Reporting (SD), Instance of Noncompliance (NC) Statement of Condition: In our Reporting Test, we found that the Municipality did not submit the quarterly report corresponding to the April-June 2022 period, in the required time frame. The Municipality submitted the report during our audit observation. Criteria: Based on the CDBG agreements, the Municipality must submit to the Department of Housing reports on records, collections, and disbursements of Program Income on an annual and quarterly basis. Including the progress of the projects developed with the CDBG program. In addition, the Municipality will submit all the reports required by the Agency. Failure to comply with this provision will be just cause for the Department to stop the fund requisition process. ? 200.332 Requirements for pass-through entities. (1) All requirements imposed by the pass-through entity on the subrecipient so that the Federal award is used in accordance with Federal statutes, regulations and the terms and conditions of the Federal award. (2) Any additional requirements that the pass-through entity imposes on the subrecipient in order for the pass-through entity to meet its own responsibility to the Federal awarding agency including identification of any required financial and performance reports. Cause of Condition: There is a lack of knowledge among employees regarding the delivery dates of reports. Additionally, the program does not have adequate monitoring of the activity and the reports, which were delivered after deadlines. Effect of Condition: The program is not in compliance with the Reporting Requirements as established in agreement. Recommendation: We recommend consulting with the agency about the deadlines for the delivery of reports. Constant monitoring and updating must be maintained to achieve a better control of the program. The reports must be presented as established in the agreement and guidelines of the Department of Housing. This will ensure compliance with reporting requirements under the Community Development Block Grants/State?s Program and Non-entitlement Grant in Hawaii agreement. Questioned Cost: None Prior Year Finding: No Views of Responsible Officials and Planned Corrective Action: The new Program Director is aware about the compliance requirement. We gave instructions to the Program Director to maintain a dateline control sheet to ascertain that required reports were submitted within the due date. Implementation Date: April 30, 2023 Responsible Person: Mr. Hector R. Sanjurjo Rodriguez Federal Programs Director