We audited the Puerto Rico Housing Finance Authority’s HOME Investment Partnerships Program as part of our strategic plan based on the large amount of HOME funds approved. The objectives of the audit were to determine whether the Authority reported accurate and supported information in the U.S. Department of Housing and Urban Development’s (HUD) Integrated Disbursement and Information System and disbursed HOME funds within HUD-established timeframes.
The Authority did not support $18.4 million in HOME commitments with a valid grant agreement, did not disburse $284,292 in HOME funds within HUD-established timeframes, and could not account for $89,331 in program funds. In addition, it did not report to HUD program income and recaptured funds in a timely manner and reported other inaccurate information concerning HOME-funded activities. As a result of these deficiencies, HUD had no assurance that the Authority met HOME program commitment and disbursement requirements.
We recommend that HUD require the Authority to (1) demonstrate that $18.4 million in HOME commitments are properly supported or deobligate, reprogram, and put to better use the unexpended commitments with expired grant agreements; (2) put to better use $153,377 in unexpended funds maintained in its local bank account; (3) remit to its treasury account $130,915 in repayment funds; (4) support $89,331 in unaccounted program income and recaptured funds; and (5) develop and implement an internal control plan to ensure that only supported and accurate information is reported to HUD.