Finding 963057 (2023-006)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-03-27
Audit: 298919
Organization: Municipality of Coamo (PR)

AI Summary

  • Core Issue: Two cases of noncompliance with housing rehabilitation timelines were identified, indicating a significant deficiency in program oversight.
  • Impacted Requirements: Compliance with 24 CFR, Section 570.506 is not met, as repairs were either overdue or incomplete during the audit.
  • Recommended Follow-Up: Ensure that participants complete repairs within contract timelines and improve internal controls to maintain compliance.

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

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 386604 2023-003
    Significant Deficiency Repeat
  • 386605 2023-003
    Significant Deficiency Repeat
  • 386606 2023-003
    Significant Deficiency Repeat
  • 386607 2023-004
    Significant Deficiency
  • 386608 2023-004
    Significant Deficiency
  • 386609 2023-004
    Significant Deficiency
  • 386610 2023-005
    Significant Deficiency
  • 386611 2023-005
    Significant Deficiency
  • 386612 2023-005
    Significant Deficiency
  • 386613 2023-006
    Significant Deficiency
  • 386614 2023-006
    Significant Deficiency
  • 386615 2023-006
    Significant Deficiency
  • 963046 2023-003
    Significant Deficiency Repeat
  • 963047 2023-003
    Significant Deficiency Repeat
  • 963048 2023-003
    Significant Deficiency Repeat
  • 963049 2023-004
    Significant Deficiency
  • 963050 2023-004
    Significant Deficiency
  • 963051 2023-004
    Significant Deficiency
  • 963052 2023-005
    Significant Deficiency
  • 963053 2023-005
    Significant Deficiency
  • 963054 2023-005
    Significant Deficiency
  • 963055 2023-006
    Significant Deficiency
  • 963056 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $5.55M
21.027 Coronavirus State and Local Fiscal Recovery Funds $961,233
84.287 Twenty-First Century Community Learning Centers $928,548
97.030 Community Disaster Loans $421,296
93.575 Child Care and Development Block Grant $388,853
21.019 Coronavirus Relief Fund $364,645
14.871 Section 8 Housing Choice Vouchers $321,615
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $122,000
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $116,130
10.558 Child and Adult Care Food Program $76,549
93.591 Family Violence Prevention and Services/state Domestic Violence Coalitions $56,300
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $49,859
10.769 Rural Business Enterprise Grants $7,467
93.052 National Family Caregiver Support, Title Iii, Part E $3,450
10.433 Rural Housing Preservation Grants $1,684