Finding Text
Municipality of Maunabo, Puerto Rico SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023
SECTION II – Financial Statements Finding and Questioned Costs (continued)
FINDING 2023-005
FEDERAL PROGRAM COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PASS
THROUGH STATE HOUSING DEPARTMENT (ASSISTANCE LISTING NO.14.228)
CATEGORY INTERNAL CONTROL/COMPLIANCE
NONCOMPLIANCE REPORTING
CONDITIONS As part of the evaluation of the Reporting Test we requested evidence of the filing of the Quarterly Report for the fiscal year 2022-2023. In the audit of the program, we noted the following:
The quarterly reports for the following quarters had not been filed to the Puerto Rico Department of Housing:
July-September 2022
October- December 2022
January-March 2023
April-June 2023
CRITERIA The delegation of funds contract signed between the Department of Housing of Puerto Rico and the Municipality establishes in its twentieth clause that the subrecipient is obliged to submit to the recipient the quarterly and annual reports for the projects developed with CDBG funds.
CAUSE The Community Development Block Grant Program (CDBG) are not maintaining adequate internal controls to guarantee timely filing of quarterly reports.
EFFECT The Municipality is exposed to the risk that the Puerto Rico Department of Housing halt the process of requisitioning funds from the administration line, affecting the operation of the program and the use of funds.
RECOMMENDATION We recommend that the program establish internal control measures to ensure that the program's quarterly reports are submitted on time to the Puerto Rico Department of Housing.
QUESTIONED COST None PRIOR YEAR Not Applicable
MANAGEMENT RESPONSE We concur with the finding
RESPONSIBLE OFFICIALS Mrs. Sandra Leon, Program Director