The Municipality of San Juan Did Not Properly Manage Its HOME Investment Partnerships Program

Date Issued

Wednesday, September 28, 2011

Submitting OIG

Department of Housing and Urban Development OIG

Agencies Reviewed/Investigated

Department of Housing and Urban Development

Report Number

2011-AT-1018

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Hide this report from display

Yes

Open Recommendations

This report has 7 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
2011-AT-1018-001-A	No	$2,399,428	$0
Determine the eligibility of the $2,399,428 disbursed for four projects with signs of slow progress and reevaluate the feasibility of the activities. Total disbursements of $3,483,086 were adjusted to consider $713,008 questioned in recommendation 2C and $370,650 in recommendation 2A. The Municipality must reimburse its HOME program from non-Federal funds for activities that HUD determines to have been terminated.
2011-AT-1018-001-C	No	$766,480	$0
Require the Municipality to reimburse its HOME program from non-Federal funds $766,480 for disbursements associated with terminated activities that did not meet HOME objectives.
2011-AT-1018-002-B	No	$46,213	$0
Require the Municipality to submit supporting documentation showing the allocability of $39,338 and any additional payroll costs charged to the HOME program between July 1, 2009, and June 30, 2011, associated with the three employees performing other functions not related to the program, or reimburse the program from non-Federal funds.
2011-AT-1018-002-C	No	$4,629,347	$0
Require the Municipality to reimburse the HOME program from non-Federal funds $2,263,799 paid for ineligible costs.
2011-AT-1018-002-D	No	$0	$2,854,395
Require the Municipality to put to better use $2,854,395 associated with unexpended funds maintained in its local bank account.
2011-AT-1018-002-F	No	$17,081	$0
Require the Municipality to update its accounting records and ensure that receipts and expenditures are properly accounted for, are reconciled with HUD's information system, and comply with HUD requirements.
2011-AT-1018-002-G	No	$0	$0
Require the Municipality to develop and implement a financial management system in accordance with HUD requirements, including that HOME 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 and that funds are disbursed in a timely manner.