Finding Text
Finding Reference 2023-006
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: Activities Allowed – Housing Rehabilitation Test (A)
Type of Finding: Significant Deficiency (SD), Instance of Noncompliance (NC)
Statement of Condition During our examination of two (2) participant’s files, we found the following situations:
a) The participant exceeded the time limit required by the Program to complete the repairs. (One (1) case)
b) The rehabilitation was still in process during our audit (agreement expired on April 20, 2023). (One (1) case)
Criteria 24 CFR, Section 570.506 states that when CDBG funds are used for rehabilitation, the grantee must assure that the work is properly completed, and appropriate documentation is maintained.
Cause of Condition The program has not established adequate internal control procedures to assure that rehabilitations are duly completed as required by regulations and appropriate documentation is maintained.
Effect of Condition The Municipality is not in compliance with 24 CFR, Section 570.506.
Recommendation We recommend that Program to assure that the participant completes the repairs and rehabilitation process within the period established in the contract.
Questioned Cost None
Prior Year Finding No
Views of Responsible Officials and Planned Corrective Action The participant mentioned in the finding is an exceptional case; a very low-income older adult participant who has limitations to complete your housing unit repairs. But we gave instructions to the Program Director to identify alternatives to provide assistance to the participant in order to complete the housing repairs.
Implementation Date: March 21, 2024
Responsible Person: Mr. Hector R. Sanjurjo Rodríguez
Federal Programs Director