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We audited Virgin Islands Community AIDS Resource & Education, Inc.’s (VICARE) Housing Opportunities for Persons With AIDS (HOPWA) program.  This audit was the result of a referral from the San Juan Office of Community Planning and Development.  The objective of the audit was to determine whether VICARE spent HOPWA funds in accordance with the U.S. Department of Housing and Urban Development (HUD) requirements and for eligible efforts.

VICARE’s financial management system did not properly identify the application of more than $538,000 in HOPWA funds and did not support the eligibility and reasonableness of more than $143,000 in program disbursements.  In addition, VICARE allowed the use of more than $12,000 for ineligible expenditures.  As a result, HUD lacked assurance that funds were adequately accounted for, safeguarded, and used for authorized purposes and in accordance with HUD requirements.

We recommend that HUD instruct VICARE to (1) submit all supporting documentation showing the eligibility and propriety of more than $681,000 in HOPWA funds and (2) return from non-Federal funds $12,447 in ineligible expenditures.