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.
Publication Report
2011-AT-1018 | September 28, 2011
The Municipality of San Juan Did Not Properly Manage Its HOME Investment Partnerships Program
We audited the Municipality of San Juan’s HOME Investment Partnerships Program (HOME). We selected the Municipality for review as part of our strategic plan based on the large amount of HOME funds approved. The objectives of the audit were to determine… moreRelated Recommendations
Community Planning and Development
- Status2011-AT-1018-001-AOpenClosed$2,399,428.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
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.
- Status2011-AT-1018-001-COpenClosed$766,480.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
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.
- Status2011-AT-1018-002-BOpenClosed$46,213.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
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.
- Status2011-AT-1018-002-COpenClosed$4,629,347.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Require the Municipality to reimburse the HOME program from non-Federal funds $2,263,799 paid for ineligible costs.
- Status2011-AT-1018-002-DOpenClosed$2,854,395.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Require the Municipality to put to better use $2,854,395 associated with unexpended funds maintained in its local bank account.
- Status2011-AT-1018-002-GOpenClosed
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.