Finding Text
Finding Reference 2023-004
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 (L)
Type of Finding: Significant Deficiency (SD), Instance of Noncompliance (NC)
Statement of Condition In our reporting test, we found that the Municipality did not submit the corresponding reports for the fiscal year ended on June 30, 2023.
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 The Municipality does not have the necessary personnel assigned to prepare and present reports in a timely manner.
Effect of Condition The program is not in compliance with the reporting requirements as established in the contract agreement.
Recommendation We recommend that the Municipality maintain constant monitoring to improve program controls. The reports must be presented as established in the agreement and guidelines of the Department of Housing. This will ensure compliance with the 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 We concur with the finding. The Municipality appointed a person to work on all the required reports.
Implementation Date: August 31, 2024
Responsible Person: Belinda Álvarez
Finance Director