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2015-AT-1001-002-D
Status
Open
Date Issued
December 05, 2014
OIG Component Office
Audit
Ensure that the borrowers either transfer the unexpended Section 108 loan proceeds to the repayment account or submit a request for extension to HUD.
Program Office
Community Planning and Development
Questioned Costs
$0.00
Better Funds Use
$0.00
Publication Report Number
2015-AT-1001

Related Recommendations

Recomendation Status Date Issued Summary
2015-AT-1001-001-A Open December 05, 2014 Submit a plan for how it will proceed with respect to the Municipality of San Lorenzo activity center 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 $7,010,276 already invested. (Footnote 6: Total investments of $7,999,275 were adjusted to account for $988,154 questioned in recommendation 2A and $845 in recommendation 2C.) If HUD determines that the activity has been canceled or is not feasible, Municipal Affairs must mitigate activity losses by committing any unused loan proceeds for future loan repayments.
2015-AT-1001-001-B Open December 05, 2014 Submit a plan for how it will proceed with respect to the Municipality of Dorado hotel 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 $7,369,000 already invested. If HUD determines that the activity has been canceled or is not feasible, Municipal Affairs must mitigate activity losses by committing any unused loan proceeds for future loan repayments.
2015-AT-1001-001-C Open December 05, 2014 Submit a plan for how it will proceed with respect to the Municipality of Camuy hotel 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 $5,474,376 already invested. (Footnote 7: Total investments of $5,830,878 were adjusted to account for $436 questioned in recommendation 2A and $356,066 in recommendation 2C.) If HUD determines that the activity has been canceled or is not feasible, Municipal Affairs must mitigate activity losses by committing any unused loan proceeds for future loan repayments.
2015-AT-1001-001-D Open December 05, 2014 Conduct monitoring of the Section 108 activities with signs of slow progress to ensure that program objectives are met and provide the intended benefits.
2015-AT-1001-002-A Open December 05, 2014 Recover from the borrowers and reimburse $1,080,242 to the applicable loan guarantee account from non-Federal funds for ineligible disbursements that were not related to the approved projects and used to finance local government operations.
2015-AT-1001-002-B Open December 05, 2014 Ensure that borrowers did not use Section 108 funds to finance local government operations and verify the return of any ineligible disbursement.
2015-AT-1001-002-C Open December 05, 2014 Obtain and submit supporting documentation showing the eligibility and propriety of $367,840 in disbursements or reimburse the loan guarantee account from non-Federal funds.
2015-AT-1001-002-E Open December 05, 2014 Ensure that the borrowers provide HUD the additional security requirements according to the loan agreement.
2015-AT-1001-002-F Open December 05, 2014 Ensure that borrowers develop and implement a financial management system in accordance with HUD requirements to ensure that program funds can be traced to a level that ensures that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes.
2015-AT-1001-002-G Open December 05, 2014 Ensure that all Section 108 loan proceeds deposited at commercial banks are properly collateralized with Government obligations.
2015-AT-1001-002-H Open December 05, 2014 Conduct monitoring reviews of all Section 108 projects and ensure that borrowers comply with all loan agreement provisions and HUD regulations.
2015-AT-1001-002-I Open December 05, 2014 Increase monitoring of Municipal Affairs’ performance in the administration of its Section 108 loan program. Consider imposing sanctions if Municipal Affairs does not demonstrate program progress.