Finding 529917 (2024-004)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-25
Audit: 347991
Organization: Municipality of Naranjito (PR)

AI Summary

  • Core Issue: The Municipality failed to submit required reports for the fiscal year ending June 30, 2024, leading to a significant deficiency in compliance.
  • Impacted Requirements: Annual and quarterly reporting on Program Income and project progress as mandated by CDBG agreements.
  • Recommended Follow-Up: The Municipality should enhance monitoring and controls to ensure timely report submissions, with a new appointee responsible for compliance by June 30, 2025.

Finding Text

Finding Reference 2024-004 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) This finding is similar to prior-year finding 2023-004. 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, 2024. 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 Yes. This finding is similar to prior-year finding 2023-004. Views of Responsible Officials and Planned Corrective Action The Municipality appointed a person to work on all the required reports and instructed them on the deadlines that apply. We were able to submit all past reports on January 2025. And subsequently we are complying with the reporting requirements. Implementation Date: June 30, 2025 Responsible Person: Carmen I. López Interim Finance Director

Categories

Subrecipient Monitoring Reporting Significant Deficiency

Other Findings in this Audit

  • 529914 2024-003
    Significant Deficiency Repeat
  • 529915 2024-003
    Significant Deficiency Repeat
  • 529916 2024-004
    Significant Deficiency Repeat
  • 529918 2024-005
    Significant Deficiency Repeat
  • 529919 2024-006
    Significant Deficiency
  • 529920 2024-007
    Significant Deficiency
  • 1106356 2024-003
    Significant Deficiency Repeat
  • 1106357 2024-003
    Significant Deficiency Repeat
  • 1106358 2024-004
    Significant Deficiency Repeat
  • 1106359 2024-004
    Significant Deficiency Repeat
  • 1106360 2024-005
    Significant Deficiency Repeat
  • 1106361 2024-006
    Significant Deficiency
  • 1106362 2024-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $7.18M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.17M
93.575 Child Care and Development Block Grant $1.12M
14.871 Section 8 Housing Choice Vouchers $1.06M
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $185,070
93.569 Community Services Block Grant $90,158
16.575 Crime Victim Assistance $76,326
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $56,080
93.053 Nutrition Services Incentive Program $42,433
16.710 Public Safety Partnership and Community Policing Grants $30,311
10.558 Child and Adult Care Food Program $29,617
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $197