Toa Alta, PR, Did Not Properly Administer Its Section 108 Loan Guarantee

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Date Issued

Thursday, December 17, 2015

Submitting OIG

Department of Housing and Urban Development OIG

Other Participating OIGs

Department of Housing and Urban Development OIG

Agencies Reviewed/Investigated

Department of Housing and Urban Development

Report Number

2016-AT-1002

Report Type

Audit

Location

PR
United States

Number of Recommendations

Questioned Costs

$9,500,000

Funds for Better Use

$139,000

Report updated under NDAA 5274

Open Recommendations

This report has 5 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
2016-AT-1002-001-A	No	$8,111,304	$0
Submit a plan for how it will proceed with respect to the multipurpose facility project, including a schedule that HUD can track to ensure its completion. HUD must reevaluate the feasibility of the activity and determine the eligibility of the $8,111,304 already invested. (Footnote 4: Total investments of $8,232,388 were adjusted to account for $109,084 questioned in recommendation 2A and $12,000 in recommendation 2B.) If HUD determines that the activity has been canceled or is not feasible, the Municipality must commit any unused loan proceeds for future loan repayments.
2016-AT-1002-001-B	No	$1,454,801	$0
Submit a plan for how it will proceed with respect to the municipal cemetery project, including a schedule that HUD can track to ensure its completion. HUD must reevaluate the feasibility of the activity and determine the eligibility of the $1,454,801 already invested. If HUD determines that the activity has been canceled or is not feasible, the Municipality must commit any unused loan proceeds for future loan repayments.
2016-AT-1002-002-C	No	$0	$0
Provide supporting documentation showing that it complied with all environmental requirements. If the Municipality does not provide evidence that it complied with all environmental requirements, HUD must initiate appropriate sanctions under 24 CFR 58.77(d)(1)(v) for noncompliance.
2016-AT-1002-002-E	No	$0	$0
Provide HUD the additional security requirements according to the loan agreement.
2016-AT-1002-002-F	No	$0	$0
Develop and implement a financial management system in accordance with HUD requirements to ensure that program funds can be traced to a level, which ensures that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes.