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Report Fraud, Waste and Abuse
  • Recommendation Number: 2019-AT-1005-001-C
  • Status: Open
  • Date Issued: August 09, 2019

Require the Municipality to return to its line of credit and put to better use $1,641 associated with the unspent program funds that have been carried over since December 2017.

Publication Report

2019-AT-1005 | August 09, 2019

The Municipality of Yauco, PR, Did Not Always Administer Its CDBG Program in Accordance With HUD Requirements

We audited the Municipality of Yauco’s Community Development Block Grant (CDBG) program as part of our strategic plan.  We selected this auditee because the U.S. Department of Housing and Urban Development (HUD) classified the Municipality as a high… more

Related Recommendations

Community Planning and Development

  •  
    Status
      Open
      Closed
    2019-AT-1005-001-A

    Develop and implement a financial management system in accordance with HUD requirements, including but not limited to permitting the disbursement of funds in a timely manner.

  •  
    Status
      Open
      Closed
    2019-AT-1005-001-B
    $1,045,085.00
    Questioned 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.

    Ensure that $1,045,085 in CDBG funds drawn from HUD between July 1, 2015, and October 31, 2018, 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, or reimburse the CDBG program from non-Federal funds. Footnote 2: Total drawdowns of more than $1.5 million were adjusted to consider $106 questioned in recommendation 1D and $469,974 in recommendation 2A.

  •  
    Status
      Open
      Closed
    2019-AT-1005-001-D
    Closed on July 17, 2020
    $106.00
    Questioned 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.

    Reimburse the CDBG program from non-Federal funds the $106 paid for ineligible bank penalties.

  •  
    Status
      Open
      Closed
    2019-AT-1005-001-E

    Establish and implement adequate controls and procedures to permit proper accountability for all CDBG funds to ensure that they are used solely for authorized purposes and properly safeguarded.

  •  
    Status
      Open
      Closed
    2019-AT-1005-002-A
    $469,974.00
    Questioned 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.

    Submit supporting documentation showing how $469,974 in CDBG funds disbursed for street improvements was properly used and in accordance with HUD requirements or reimburse the CDBG program from non-Federal funds.

  •  
    Status
      Open
      Closed
    2019-AT-1005-002-B

    Determine the amount spent for the resurfacing of the 16 private properties identified and reimburse the CDBG program from non-Federal funds.

  •  
    Status
      Open
      Closed
    2019-AT-1005-002-C

    Establish and implement adequate policies and procedures, including project inspection protocols, to ensure that CDBG funds are used for activities that meet a national objective, are used for eligible purposes, and are properly supported.