Finding 547522 (2024-007)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 351725
Organization: Municipality of Coamo (PR)

AI Summary

  • Core Issue: The Program is failing to conduct required annual and quality control inspections as mandated by federal regulations.
  • Impacted Requirements: Noncompliance with 24CFR, Subpart I, Section 982.405 (c) and the Administrative Plan, which requires inspections every 12 to 24 months.
  • Recommended Follow-Up: The Municipality should enhance monitoring to ensure inspections are performed correctly and consistently to meet compliance standards.

Finding Text

Finding Reference 2024-007 Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Agency: P.R. Department of Housing Federal Program: Section 8 Housing Choice Vouchers (ALN 14.871) Requirement: Special Tests and Provisions (N) Type of Finding: Significant Deficiency (SD), Instance of Noncompliance (NC) Statement of Condition: During our audit procedures, we observed that the Program does not meet the requirements of annual and quality control inspections. Criteria: 24CFR, Subpart I, Section 982.405 (c) the PHA must conduct supervisory quality control HQS inspections. Also, the Administrative Plan, chapter 10 establishes that HUD requires the Department to inspect each unit under lease at least once every 24 months to confirm that the unit still meets HQS. The inspection may be conducted in conjunction with the family's annual reexamination but also may be conducted separately. According to the plan, the Municipality will conduct inspections every twelve months. In the same chapter, HUD requires that a sample of units be re-inspected by a supervisor or other qualified individual to ensure that HQS are being enforced correctly and uniformly by all inspectors. Cause of Condition: The personnel in charge did not comply with the annual and quality inspections. In addition, the program does not have adequate follow-up for compliance with the requirements. Effect of Condition: The Program is not in compliance with 24CFR, Subpart I, Section 982.405 (c) and Administrative Plan. Recommendation: We recommend that the Municipality monitor the program to ensure that proper inspections are being conducted. This will ensure compliance with the requirements under the Section 8 Housing Choice Vouchers. Questioned Cost: None. Prior Year Finding: No.   Views of Responsible Officials and Planned Corrective Action: We concur with the audit finding. Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the execution of supervisory quality control HQS inspections, as required by the program regulations. Implementation Date: March 31, 2025 Responsible Person: Mr. Hector R. Sanjurjo Rodríguez Federal Programs Director

Corrective Action Plan

MUNICIPALITY OF COAMO CORRECTIVE ACTION PLAN SINGLE AUDIT REQUIREMENTS AS OF JUNE 30, 2024 Corrective Action Plan: We concur with the audit finding. Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the execution of supervisory quality control HQS inspections, as required by the program regulations. Implementation Date: March 31, 2025 Responsible Person: Mr. Hector R. Sanjurjo Rodríguez Federal Programs Director

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 547514 2024-003
    Significant Deficiency Repeat
  • 547515 2024-003
    Significant Deficiency Repeat
  • 547516 2024-003
    Significant Deficiency Repeat
  • 547517 2024-004
    Significant Deficiency Repeat
  • 547518 2024-004
    Significant Deficiency Repeat
  • 547519 2024-004
    Significant Deficiency Repeat
  • 547520 2024-005
    Significant Deficiency
  • 547521 2024-006
    Significant Deficiency
  • 1123956 2024-003
    Significant Deficiency Repeat
  • 1123957 2024-003
    Significant Deficiency Repeat
  • 1123958 2024-003
    Significant Deficiency Repeat
  • 1123959 2024-004
    Significant Deficiency Repeat
  • 1123960 2024-004
    Significant Deficiency Repeat
  • 1123961 2024-004
    Significant Deficiency Repeat
  • 1123962 2024-005
    Significant Deficiency
  • 1123963 2024-006
    Significant Deficiency
  • 1123964 2024-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $12.98M
97.030 Community Disaster Loans $1.98M
84.287 Twenty-First Century Community Learning Centers $1.14M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.07M
93.575 Child Care and Development Block Grant $956,383
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $379,562
14.871 Section 8 Housing Choice Vouchers $352,595
10.558 Child and Adult Care Food Program $246,386
20.509 Formula Grants for Rural Areas and Tribal Transit Program $84,117
93.591 Family Violence Prevention and Services/state Domestic Violence Coalitions $73,267
21.027 Coronavirus State and Local Fiscal Recovery Funds $58,148
10.433 Rural Housing Preservation Grants $30,629
97.039 Hazard Mitigation Grant $20,370