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: Activities Allowed – Housekeepers activity (A)
Type of Finding: Significant Deficiency (SD), Instance of Noncompliance (NC)
Statement of Condition: We examined four (4) files of housekeeper program participants and found the following exceptions:
a) The Program staff did not visit at least twice per month the participant’s housing unit to ensure the quality of services, according to the activity procedures guide.
b) The monthly evaluation of the work carried out by the housekeeper was not carried out.
Criteria: 24 CFR, Section 570.484 states that the Municipality must ensure that the program funds benefit very low, low and moderate-income persons and retain documentation justifying its certification.
Also, the Municipality has an operational guide approved by its pass-through agency, P.R. Housing Department where it is established all procedures and program requirements for housekeeper activities.
Cause of Condition: The Municipality’s controls and procedures failed to ensure that the participant’s files include all the required documents to comply with the Program requirements.
Effect of Condition: The Municipality is not in compliance with the Code of Federal Regulations 24, Section 570.484 and with the operational guide.
Recommendation: We recommend management follow the procedures established by the P.R. Department of Housing in the procedures manual, including the use of the forms included in it.
Questioned Cost: None.
Prior Year Finding: This finding is similar to prior year finding 2023-005.
Views of Responsible
Officials and Planned
Corrective Action: We concur with the audit finding. The housekeepers project financed with COVID19-CDBG funds was administered to serve eligible participants within the municipality’s territorial limits. But we gave instructions to the Program Director to assure full compliance with the program guides, including the completeness and submission of any applicable form, and to visit participants housing units as required by the program guide.
Implementation Date: March 31, 2025
Responsible Person: Mr. Hector R. Sanjurjo Rodríguez
Federal Programs Director