EIN: 660433490
UEI: MFV5M444Z7C6
Audited by: Rodriguez & Santiago, CPA'S PSC
Oversight agency: 10 [Department of Agriculture]
View federal awards & risk assessment →
Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 17, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 17, 2026 (18 days from today).
What is a management decision? →FAC accepted this audit on March 26, 2026 — management decision was due September 26, 2026.
FAC accepted this audit on March 28, 2025 — management decision was due September 28, 2025.
The Single Audit reporting package, as defined and required in 2 CRF 200.512 for fiscal year ended June 30, 2023, was not submitted timely. Context: Despite the Municipality’s best efforts to provide, on a timely basis, the information needed to complete the audit, data collection form and reporting package according to 2 CRF 200.512, the audit, data collection form and reporting package for the fiscal year ended June 30, 2023 was submitted to the Federal Audit Clearinghouse on May 6, 2024 Criteria: As per 2 CRF 200.512, the audit, data collection form, and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause: The Municipality was not able to provide on a timely basis, the information needed to complete the audit for the year ended on June 30, 2023. This situation prevented the submission of the data collection form and reporting package by the due date of March 31, 2024. Effect: Because of the situation described above, the Senate did not comply with the report submission requirement, since the audit was not submitted within nine months after their fiscal period end date. Auditor’s recommendation: Management should continue to fulfill their auditee responsibilities as stated in 2 CRF 200.508 which among other things, require management to prepare appropriate financial statements and provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit and to ensure that subsequent financial reporting packages are submitted timely. View of Responsible officials and corrective actions: Management gave instructions to the Finance Department staff to submit, in a timely manner, all the required information, to our external consultants and to our external auditors, in order to comply with the datelines for the submission of the Single Audit Report. Implementation Date: March 31, 2025 Responsible Person: Mr. Diego Meléndez – Finance Department Director
Show full finding ▾Hide full finding ▴Condition: The Single Audit reporting package, as defined and required in 2 CRF 200.512 for fiscal year ended June 30, 2023, was not submitted timely. Context: Despite the Municipality’s best efforts to provide, on a timely basis, the information needed to complete the audit, data collection form and reporting package according to 2 CRF 200.512, the audit, data collection form and reporting package for the fiscal year ended June 30, 2023 was submitted to the Federal Audit Clearinghouse on May 6, 2024 Criteria: As per 2 CRF 200.512, the audit, data collection form, and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause: The Municipality was not able to provide on a timely basis, the information needed to complete the audit for the year ended on June 30, 2023. This situation prevented the submission of the data collection form and reporting package by the due date of March 31, 2024. Effect: Because of the situation described above, the Senate did not comply with the report submission requirement, since the audit was not submitted within nine months after their fiscal period end date. Auditor’s recommendation: Management should continue to fulfill their auditee responsibilities as stated in 2 CRF 200.508 which among other things, require management to prepare appropriate financial statements and provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit and to ensure that subsequent financial reporting packages are submitted timely. View of Responsible officials and corrective actions: Management gave instructions to the Finance Department staff to submit, in a timely manner, all the required information, to our external consultants and to our external auditors, in order to comply with the datelines for the submission of the Single Audit Report. Implementation Date: March 31, 2025 Responsible Person: Mr. Diego Meléndez – Finance Department Director
Management gave instructions to the Finance Department staff to submit, in a timely manner, all the required information, to our external consultants and to our external auditors, in order to comply with the datelines for the submission of the Single Audit Report. Implementation Date: March 31, 2025 Responsible Person: Mr. Diego Melendez - Finance Department Director
The Municipality did not submit for our review the Coronavirus State Fiscal Recovery Funds - Use of Funds Report for all the expenses incurred under the Assistance Program to Municipalities as required by program regulations. Context: The Municipality used $930,027 under the Coronavirus State Fiscal Recovery Fund during the fiscal year ended on June 30, 2024, to cover expenses related to the public health emergency caused by the Covid-19 pandemic. Criteria: Under the Municipal Strengthening Fund Program, the Municipality must report to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) program expenses for the month, 15 days after the end of the month. Cause: The Municipality did not submit the Use of Funds Report to the Aafaf by the 15th day of the following month; the expenses were incurred. Effect: The Municipality is not in compliance with its grant award. Auditor’s recommendation: The Municipality should implement internal controls and procedures to ensure that the required reports are completed and submitted in a timely manner as per program regulations. View of Responsible officials and corrective actions: The Finance Department staff is aware about the compliance requirement, and instructions were given to the accounting staff to maintain a dateline control sheet to ascertain that required reports were submitted within the due date. Responsible Person: Mr. Diego Meléndez – Finance Department Director Implementation Date: Fiscal Year 2024-2025 Audit Status: Unresolved
Show full finding ▾Hide full finding ▴Condition: The Municipality did not submit for our review the Coronavirus State Fiscal Recovery Funds - Use of Funds Report for all the expenses incurred under the Assistance Program to Municipalities as required by program regulations. Context: The Municipality used $930,027 under the Coronavirus State Fiscal Recovery Fund during the fiscal year ended on June 30, 2024, to cover expenses related to the public health emergency caused by the Covid-19 pandemic. Criteria: Under the Municipal Strengthening Fund Program, the Municipality must report to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) program expenses for the month, 15 days after the end of the month. Cause: The Municipality did not submit the Use of Funds Report to the Aafaf by the 15th day of the following month; the expenses were incurred. Effect: The Municipality is not in compliance with its grant award. Auditor’s recommendation: The Municipality should implement internal controls and procedures to ensure that the required reports are completed and submitted in a timely manner as per program regulations. View of Responsible officials and corrective actions: The Finance Department staff is aware about the compliance requirement, and instructions were given to the accounting staff to maintain a dateline control sheet to ascertain that required reports were submitted within the due date. Responsible Person: Mr. Diego Meléndez – Finance Department Director Implementation Date: Fiscal Year 2024-2025 Audit Status: Unresolved
The Finance Department staff is aware about the compliance requirement, and instructions were given to the accounting staff to maintain a dateline control sheet to ascertain that required reports were submitted within the due date. Responsible Person: Mr. Diego Meléndez – Finance Department Director Implementation Date: Fiscal Year 2024-2025
FAC accepted this audit on March 31, 2025 — management decision was due October 1, 2025.
The Single Audit reporting package, as defined and required in 2 CRF 200.512 for fiscal year ended June 30, 2023, was not submitted timely. Context: Despite the Municipality’s best efforts to provide, on a timely basis, the information needed to complete the audit, data collection form and reporting package according to 2 CRF 200.512, the audit, data collection form and reporting package for the fiscal year ended June 30, 2023 was submitted to the Federal Audit Clearinghouse on May 6, 2024 Criteria: As per 2 CRF 200.512, the audit, data collection form, and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause: The Municipality was not able to provide on a timely basis, the information needed to complete the audit for the year ended on June 30, 2023. This situation prevented the submission of the data collection form and reporting package by the due date of March 31, 2024. Effect: Because of the situation described above, the Senate did not comply with the report submission requirement, since the audit was not submitted within nine months after their fiscal period end date. Auditor’s recommendation: Management should continue to fulfill their auditee responsibilities as stated in 2 CRF 200.508 which among other things, require management to prepare appropriate financial statements and provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit and to ensure that subsequent financial reporting packages are submitted timely. View of Responsible officials and corrective actions: Management gave instructions to the Finance Department staff to submit, in a timely manner, all the required information, to our external consultants and to our external auditors, in order to comply with the datelines for the submission of the Single Audit Report. Implementation Date: March 31, 2025 Responsible Person: Mr. Diego Meléndez – Finance Department Director
Show full finding ▾Hide full finding ▴Condition: The Single Audit reporting package, as defined and required in 2 CRF 200.512 for fiscal year ended June 30, 2023, was not submitted timely. Context: Despite the Municipality’s best efforts to provide, on a timely basis, the information needed to complete the audit, data collection form and reporting package according to 2 CRF 200.512, the audit, data collection form and reporting package for the fiscal year ended June 30, 2023 was submitted to the Federal Audit Clearinghouse on May 6, 2024 Criteria: As per 2 CRF 200.512, the audit, data collection form, and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause: The Municipality was not able to provide on a timely basis, the information needed to complete the audit for the year ended on June 30, 2023. This situation prevented the submission of the data collection form and reporting package by the due date of March 31, 2024. Effect: Because of the situation described above, the Senate did not comply with the report submission requirement, since the audit was not submitted within nine months after their fiscal period end date. Auditor’s recommendation: Management should continue to fulfill their auditee responsibilities as stated in 2 CRF 200.508 which among other things, require management to prepare appropriate financial statements and provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit and to ensure that subsequent financial reporting packages are submitted timely. View of Responsible officials and corrective actions: Management gave instructions to the Finance Department staff to submit, in a timely manner, all the required information, to our external consultants and to our external auditors, in order to comply with the datelines for the submission of the Single Audit Report. Implementation Date: March 31, 2025 Responsible Person: Mr. Diego Meléndez – Finance Department Director
Management gave instructions to the Finance Department staff to submit, in a timely manner, all the required information, to our external consultants and to our external auditors, in order to comply with the datelines for the submission of the Single Audit Report. Implementation Date: March 31, 2025 Responsible Person: Mr. Diego Melendez - Finance Department Director
The Municipality did not submit for our review the Coronavirus State Fiscal Recovery Funds - Use of Funds Report for all the expenses incurred under the Assistance Program to Municipalities as required by program regulations. Context: The Municipality used $930,027 under the Coronavirus State Fiscal Recovery Fund during the fiscal year ended on June 30, 2024, to cover expenses related to the public health emergency caused by the Covid-19 pandemic. Criteria: Under the Municipal Strengthening Fund Program, the Municipality must report to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) program expenses for the month, 15 days after the end of the month. Cause: The Municipality did not submit the Use of Funds Report to the Aafaf by the 15th day of the following month; the expenses were incurred. Effect: The Municipality is not in compliance with its grant award. Auditor’s recommendation: The Municipality should implement internal controls and procedures to ensure that the required reports are completed and submitted in a timely manner as per program regulations. View of Responsible officials and corrective actions: The Finance Department staff is aware about the compliance requirement, and instructions were given to the accounting staff to maintain a dateline control sheet to ascertain that required reports were submitted within the due date. Responsible Person: Mr. Diego Meléndez – Finance Department Director Implementation Date: Fiscal Year 2024-2025 Audit Status: Unresolved
Show full finding ▾Hide full finding ▴Condition: The Municipality did not submit for our review the Coronavirus State Fiscal Recovery Funds - Use of Funds Report for all the expenses incurred under the Assistance Program to Municipalities as required by program regulations. Context: The Municipality used $930,027 under the Coronavirus State Fiscal Recovery Fund during the fiscal year ended on June 30, 2024, to cover expenses related to the public health emergency caused by the Covid-19 pandemic. Criteria: Under the Municipal Strengthening Fund Program, the Municipality must report to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) program expenses for the month, 15 days after the end of the month. Cause: The Municipality did not submit the Use of Funds Report to the Aafaf by the 15th day of the following month; the expenses were incurred. Effect: The Municipality is not in compliance with its grant award. Auditor’s recommendation: The Municipality should implement internal controls and procedures to ensure that the required reports are completed and submitted in a timely manner as per program regulations. View of Responsible officials and corrective actions: The Finance Department staff is aware about the compliance requirement, and instructions were given to the accounting staff to maintain a dateline control sheet to ascertain that required reports were submitted within the due date. Responsible Person: Mr. Diego Meléndez – Finance Department Director Implementation Date: Fiscal Year 2024-2025 Audit Status: Unresolved
The Finance Department staff is aware about the compliance requirement, and instructions were given to the accounting staff to maintain a dateline control sheet to ascertain that required reports were submitted within the due date. Responsible Person: Mr. Diego Meléndez – Finance Department Director Implementation Date: Fiscal Year 2024-2025
FAC accepted this audit on March 25, 2024 — management decision was due September 25, 2024.
Project management did not complete repairs needed to ensure that units meet housing quality standards. Project management did not complete periodic inspections at least annually. Context: As part of our audit procedure, we selected 9 units to evaluate housing quality standards. Seven selections resulted in HQS Unit Inspections. Work orders related to the seven HQS unit inspections were still opened and required repairs ,as documented on the work orders requests, were not completed as of June 30, 2023. One HQS Unit Inspection was not completed on an annual basis. Criteria: 24 CRF 886.323(a) states that the owner shall maintain and operate the project so as to provide decent, safe, and sanitary housing and the owner shall provide all the services, maintenance, and utilities which he or she agrees to provide under the contract and the lease. Failure to do so shall be considered a material default under the contract and Regulatory Agreement, if any. 24 CRF 884.217 states that the PHA will inspect each contract unit and related facilities at least annually and at such other times as the PHA may determine to be necessary to assure that the Owner is meeting his obligation to maintain the units in Decent, Safe, and Sanitary condition and to provide the agreed upon utilities and other services. Cause: Project employees targeted their efforts on completing emergency repairs on current year inspections. Effect: 24 CRF 886.323 ( e) states that if HUD notifies the owner that he has failed to maintain a dwelling unit in decent, safe, and sanitary condition, and the owner fails to take corrective action within the time prescribed in the notice, HUD may exercise any of its rights or remedies under the contract, or Regulatory Agreement, if any, including abatement of housing assistance payments (even if the family continues to occupy the unit) and rescission of the sale. Auditor’s recommendation: The project management should implement internal control procedures to assure that all units under contract are in a decent, safe and sanitary condition. Required repairs should be completed in a timely manner and properly documented on the work order request. Views of Responsible officials and corrective actions: The inspections of Los Húcares I, could not be completed annually, as required, due to staffing limitations. Work orders were not completed because many of the repairs are extraordinary, and personnel take more time to complete them. The maintenance staff is not sufficient for all necessary repairs, and the project requires additional funds to address all needs. We prioritized emergency repairs in both occupied and vacant units. This situation has been communicated to the owner; however, we have not received a response regarding the process to obtain additional funds to cover these needs. Therefore, we request the termination of our management contract effective August 14, 2023. Audit Status: Unresolved.
Show full finding ▾Hide full finding ▴Condition: Project management did not complete repairs needed to ensure that units meet housing quality standards. Project management did not complete periodic inspections at least annually. Context: As part of our audit procedure, we selected 9 units to evaluate housing quality standards. Seven selections resulted in HQS Unit Inspections. Work orders related to the seven HQS unit inspections were still opened and required repairs ,as documented on the work orders requests, were not completed as of June 30, 2023. One HQS Unit Inspection was not completed on an annual basis. Criteria: 24 CRF 886.323(a) states that the owner shall maintain and operate the project so as to provide decent, safe, and sanitary housing and the owner shall provide all the services, maintenance, and utilities which he or she agrees to provide under the contract and the lease. Failure to do so shall be considered a material default under the contract and Regulatory Agreement, if any. 24 CRF 884.217 states that the PHA will inspect each contract unit and related facilities at least annually and at such other times as the PHA may determine to be necessary to assure that the Owner is meeting his obligation to maintain the units in Decent, Safe, and Sanitary condition and to provide the agreed upon utilities and other services. Cause: Project employees targeted their efforts on completing emergency repairs on current year inspections. Effect: 24 CRF 886.323 ( e) states that if HUD notifies the owner that he has failed to maintain a dwelling unit in decent, safe, and sanitary condition, and the owner fails to take corrective action within the time prescribed in the notice, HUD may exercise any of its rights or remedies under the contract, or Regulatory Agreement, if any, including abatement of housing assistance payments (even if the family continues to occupy the unit) and rescission of the sale. Auditor’s recommendation: The project management should implement internal control procedures to assure that all units under contract are in a decent, safe and sanitary condition. Required repairs should be completed in a timely manner and properly documented on the work order request. Views of Responsible officials and corrective actions: The inspections of Los Húcares I, could not be completed annually, as required, due to staffing limitations. Work orders were not completed because many of the repairs are extraordinary, and personnel take more time to complete them. The maintenance staff is not sufficient for all necessary repairs, and the project requires additional funds to address all needs. We prioritized emergency repairs in both occupied and vacant units. This situation has been communicated to the owner; however, we have not received a response regarding the process to obtain additional funds to cover these needs. Therefore, we request the termination of our management contract effective August 14, 2023. Audit Status: Unresolved.
The inspections of Los Húcares I, could not be completed annually, as required, due to staffing limitations. Work orders were not completed because many of the repairs are extraordinary, and personnel take more time to complete them. The maintenance staff is not sufficient for all necessary repairs, and the project requires additional funds to address all needs. We prioritized emergency repairs in both occupied and vacant units. This situation has been communicated to the owner; however, we have not received a response regarding the process to obtain additional funds to cover these needs. Therefore, we request the termination of our management contract effective August 14, 2023.
2022-001, 2021-001, 2020-001
FAC accepted this audit on May 16, 2024 — management decision was due November 16, 2024.
Project management did not complete repairs needed to ensure that units meet housing quality standards. Project management did not complete periodic inspections at least annually. Context: As part of our audit procedure, we selected 9 units to evaluate housing quality standards. Seven selections resulted in HQS Unit Inspections. Work orders related to the seven HQS unit inspections were still opened and required repairs ,as documented on the work orders requests, were not completed as of June 30, 2023. One HQS Unit Inspection was not completed on an annual basis. Criteria: 24 CRF 886.323(a) states that the owner shall maintain and operate the project so as to provide decent, safe, and sanitary housing and the owner shall provide all the services, maintenance, and utilities which he or she agrees to provide under the contract and the lease. Failure to do so shall be considered a material default under the contract and Regulatory Agreement, if any. 24 CRF 884.217 states that the PHA will inspect each contract unit and related facilities at least annually and at such other times as the PHA may determine to be necessary to assure that the Owner is meeting his obligation to maintain the units in Decent, Safe, and Sanitary condition and to provide the agreed upon utilities and other services. Cause: Project employees targeted their efforts on completing emergency repairs on current year inspections. Effect: 24 CRF 886.323 ( e) states that if HUD notifies the owner that he has failed to maintain a dwelling unit in decent, safe, and sanitary condition, and the owner fails to take corrective action within the time prescribed in the notice, HUD may exercise any of its rights or remedies under the contract, or Regulatory Agreement, if any, including abatement of housing assistance payments (even if the family continues to occupy the unit) and rescission of the sale. Auditor’s recommendation: The project management should implement internal control procedures to assure that all units under contract are in a decent, safe and sanitary condition. Required repairs should be completed in a timely manner and properly documented on the work order request. Views of Responsible officials and corrective actions: The inspections of Los Húcares I, could not be completed annually, as required, due to staffing limitations. Work orders were not completed because many of the repairs are extraordinary, and personnel take more time to complete them. The maintenance staff is not sufficient for all necessary repairs, and the project requires additional funds to address all needs. We prioritized emergency repairs in both occupied and vacant units. This situation has been communicated to the owner; however, we have not received a response regarding the process to obtain additional funds to cover these needs. Therefore, we request the termination of our management contract effective August 14, 2023. Audit Status: Unresolved.
Show full finding ▾Hide full finding ▴Condition: Project management did not complete repairs needed to ensure that units meet housing quality standards. Project management did not complete periodic inspections at least annually. Context: As part of our audit procedure, we selected 9 units to evaluate housing quality standards. Seven selections resulted in HQS Unit Inspections. Work orders related to the seven HQS unit inspections were still opened and required repairs ,as documented on the work orders requests, were not completed as of June 30, 2023. One HQS Unit Inspection was not completed on an annual basis. Criteria: 24 CRF 886.323(a) states that the owner shall maintain and operate the project so as to provide decent, safe, and sanitary housing and the owner shall provide all the services, maintenance, and utilities which he or she agrees to provide under the contract and the lease. Failure to do so shall be considered a material default under the contract and Regulatory Agreement, if any. 24 CRF 884.217 states that the PHA will inspect each contract unit and related facilities at least annually and at such other times as the PHA may determine to be necessary to assure that the Owner is meeting his obligation to maintain the units in Decent, Safe, and Sanitary condition and to provide the agreed upon utilities and other services. Cause: Project employees targeted their efforts on completing emergency repairs on current year inspections. Effect: 24 CRF 886.323 ( e) states that if HUD notifies the owner that he has failed to maintain a dwelling unit in decent, safe, and sanitary condition, and the owner fails to take corrective action within the time prescribed in the notice, HUD may exercise any of its rights or remedies under the contract, or Regulatory Agreement, if any, including abatement of housing assistance payments (even if the family continues to occupy the unit) and rescission of the sale. Auditor’s recommendation: The project management should implement internal control procedures to assure that all units under contract are in a decent, safe and sanitary condition. Required repairs should be completed in a timely manner and properly documented on the work order request. Views of Responsible officials and corrective actions: The inspections of Los Húcares I, could not be completed annually, as required, due to staffing limitations. Work orders were not completed because many of the repairs are extraordinary, and personnel take more time to complete them. The maintenance staff is not sufficient for all necessary repairs, and the project requires additional funds to address all needs. We prioritized emergency repairs in both occupied and vacant units. This situation has been communicated to the owner; however, we have not received a response regarding the process to obtain additional funds to cover these needs. Therefore, we request the termination of our management contract effective August 14, 2023. Audit Status: Unresolved.
The inspections of Los Húcares I, could not be completed annually, as required, due to staffing limitations. Work orders were not completed because many of the repairs are extraordinary, and personnel take more time to complete them. The maintenance staff is not sufficient for all necessary repairs, and the project requires additional funds to address all needs. We prioritized emergency repairs in both occupied and vacant units. This situation has been communicated to the owner; however, we have not received a response regarding the process to obtain additional funds to cover these needs. Therefore, we request the termination of our management contract effective August 14, 2023.
2022-001, 2021-001, 2020-001
FAC accepted this audit on November 2, 2022 — management decision was due May 2, 2023.
Project management did not complete repairs needed to ensure that units meet housing quality standards, nor performed housing quality inspections at least annually. Context: As part of our audit procedure, we selected 9 units to evaluate housing quality standards. Six selections resulted in HQS Unit Inspections. For two of the six HQS unit inspections, management indicated on the inspection report that the unit was not in decent, safe and sanitary condition. Work orders related to the six HQS unit inspections were still opened and required repairs as documented on the work orders were not completed as of June 30, 2022. For two of the six units, housing quality inspections were not performed at least annually. Criteria: 24 CRF 886.323(a) states that the owner shall maintain and operate the project so as to provide decent, safe, and sanitary housing and the owner shall provide all the services, maintenance, and utilities which he or she agrees to provide under the contract and the lease. Failure to do so shall be considered a material default under the contract and Regulatory Agreement, if any. 24 CRF 882.516 (b) states that in addition to the inspections required prior to execution of the Contract, the PHA must inspect or cause to be inspected each dwelling unit under Contract at least annually and at such other times as may be necessary to assure that the Owner is meeting the obligations to maintain the unit in decent, safe and sanitary condition and to provide the agreed upon utilities and other services. Cause: As a consequence of the Covid-19 pandemic, most of prior year unit inspections were completed in August 2021. Current year unit inspections were completed during the months of February and March of 2022. Employees targeted their efforts on completing emergency repairs on those inspections. Major repairs to units with prolonged vacancy periods were performed during the current year. Effect: 24 CRF 886.323 ( e) states that if HUD notifies the owner that he has failed to maintain a dwelling unit in decent, safe, and sanitary condition, and the owner fails to take corrective action within the time prescribed in the notice, HUD may exercise any of its rights or remedies under the contract, or Regulatory Agreement, if any, including abatement of housing assistance payments (even if the family continues to occupy the unit) and rescission of the sale. Auditor?s recommendation: The project management should implement internal control and procedures to assure that all units under contract be decent, safe and sanitary. Required repairs should be completed timely.
Show full finding ▾Hide full finding ▴Condition: Project management did not complete repairs needed to ensure that units meet housing quality standards, nor performed housing quality inspections at least annually. Context: As part of our audit procedure, we selected 9 units to evaluate housing quality standards. Six selections resulted in HQS Unit Inspections. For two of the six HQS unit inspections, management indicated on the inspection report that the unit was not in decent, safe and sanitary condition. Work orders related to the six HQS unit inspections were still opened and required repairs as documented on the work orders were not completed as of June 30, 2022. For two of the six units, housing quality inspections were not performed at least annually. Criteria: 24 CRF 886.323(a) states that the owner shall maintain and operate the project so as to provide decent, safe, and sanitary housing and the owner shall provide all the services, maintenance, and utilities which he or she agrees to provide under the contract and the lease. Failure to do so shall be considered a material default under the contract and Regulatory Agreement, if any. 24 CRF 882.516 (b) states that in addition to the inspections required prior to execution of the Contract, the PHA must inspect or cause to be inspected each dwelling unit under Contract at least annually and at such other times as may be necessary to assure that the Owner is meeting the obligations to maintain the unit in decent, safe and sanitary condition and to provide the agreed upon utilities and other services. Cause: As a consequence of the Covid-19 pandemic, most of prior year unit inspections were completed in August 2021. Current year unit inspections were completed during the months of February and March of 2022. Employees targeted their efforts on completing emergency repairs on those inspections. Major repairs to units with prolonged vacancy periods were performed during the current year. Effect: 24 CRF 886.323 ( e) states that if HUD notifies the owner that he has failed to maintain a dwelling unit in decent, safe, and sanitary condition, and the owner fails to take corrective action within the time prescribed in the notice, HUD may exercise any of its rights or remedies under the contract, or Regulatory Agreement, if any, including abatement of housing assistance payments (even if the family continues to occupy the unit) and rescission of the sale. Auditor?s recommendation: The project management should implement internal control and procedures to assure that all units under contract be decent, safe and sanitary. Required repairs should be completed timely.
Views of Responsible officials and corrective actions: The inspections of Los Hucares I could not be completed annually, as required, due to restrictions related to Covid 19. Inspections for all units will be done before December 31, 2022. Work orders were not completed because many of the repairs are extraordinary, and personnel take more time to complete them. Maintenance personnel is not enough for all repairs needed and project require additional funds for all needs. We prioritized emergency repairs on occupied units and vacant units. We met with owner representative to discuss alternatives for additional funds for the project and they are in the process to evaluate them. Instructions were imparted to the project Administrator to inspect all units semiannually rather than annually, according to the Management Agent?s Procedures, starting on January 2023. In addition, we have created working groups from other projects to assist in the repairs to the units. We will continue following up Owner representative for another source of funds to comply with all Federal Regulations.
2021-001
FAC accepted this audit on April 25, 2023 — management decision was due October 25, 2023.
Project management did not complete repairs needed to ensure that units meet housing quality standards, nor performed housing quality inspections at least annually. Context: As part of our audit procedure, we selected 9 units to evaluate housing quality standards. Six selections resulted in HQS Unit Inspections. For two of the six HQS unit inspections, management indicated on the inspection report that the unit was not in decent, safe and sanitary condition. Work orders related to the six HQS unit inspections were still opened and required repairs as documented on the work orders were not completed as of June 30, 2022. For two of the six units, housing quality inspections were not performed at least annually. Criteria: 24 CRF 886.323(a) states that the owner shall maintain and operate the project so as to provide decent, safe, and sanitary housing and the owner shall provide all the services, maintenance, and utilities which he or she agrees to provide under the contract and the lease. Failure to do so shall be considered a material default under the contract and Regulatory Agreement, if any. 24 CRF 882.516 (b) states that in addition to the inspections required prior to execution of the Contract, the PHA must inspect or cause to be inspected each dwelling unit under Contract at least annually and at such other times as may be necessary to assure that the Owner is meeting the obligations to maintain the unit in decent, safe and sanitary condition and to provide the agreed upon utilities and other services. Cause: As a consequence of the Covid-19 pandemic, most of prior year unit inspections were completed in August 2021. Current year unit inspections were completed during the months of February and March of 2022. Employees targeted their efforts on completing emergency repairs on those inspections. Major repairs to units with prolonged vacancy periods were performed during the current year. Effect: 24 CRF 886.323 ( e) states that if HUD notifies the owner that he has failed to maintain a dwelling unit in decent, safe, and sanitary condition, and the owner fails to take corrective action within the time prescribed in the notice, HUD may exercise any of its rights or remedies under the contract, or Regulatory Agreement, if any, including abatement of housing assistance payments (even if the family continues to occupy the unit) and rescission of the sale. Auditor?s recommendation: The project management should implement internal control and procedures to assure that all units under contract be decent, safe and sanitary. Required repairs should be completed timely.
Show full finding ▾Hide full finding ▴Condition: Project management did not complete repairs needed to ensure that units meet housing quality standards, nor performed housing quality inspections at least annually. Context: As part of our audit procedure, we selected 9 units to evaluate housing quality standards. Six selections resulted in HQS Unit Inspections. For two of the six HQS unit inspections, management indicated on the inspection report that the unit was not in decent, safe and sanitary condition. Work orders related to the six HQS unit inspections were still opened and required repairs as documented on the work orders were not completed as of June 30, 2022. For two of the six units, housing quality inspections were not performed at least annually. Criteria: 24 CRF 886.323(a) states that the owner shall maintain and operate the project so as to provide decent, safe, and sanitary housing and the owner shall provide all the services, maintenance, and utilities which he or she agrees to provide under the contract and the lease. Failure to do so shall be considered a material default under the contract and Regulatory Agreement, if any. 24 CRF 882.516 (b) states that in addition to the inspections required prior to execution of the Contract, the PHA must inspect or cause to be inspected each dwelling unit under Contract at least annually and at such other times as may be necessary to assure that the Owner is meeting the obligations to maintain the unit in decent, safe and sanitary condition and to provide the agreed upon utilities and other services. Cause: As a consequence of the Covid-19 pandemic, most of prior year unit inspections were completed in August 2021. Current year unit inspections were completed during the months of February and March of 2022. Employees targeted their efforts on completing emergency repairs on those inspections. Major repairs to units with prolonged vacancy periods were performed during the current year. Effect: 24 CRF 886.323 ( e) states that if HUD notifies the owner that he has failed to maintain a dwelling unit in decent, safe, and sanitary condition, and the owner fails to take corrective action within the time prescribed in the notice, HUD may exercise any of its rights or remedies under the contract, or Regulatory Agreement, if any, including abatement of housing assistance payments (even if the family continues to occupy the unit) and rescission of the sale. Auditor?s recommendation: The project management should implement internal control and procedures to assure that all units under contract be decent, safe and sanitary. Required repairs should be completed timely.
Views of Responsible officials and corrective actions: The inspections of Los Hucares I could not be completed annually, as required, due to restrictions related to Covid 19. Inspections for all units will be done before December 31, 2022. Work orders were not completed because many of the repairs are extraordinary, and personnel take more time to complete them. Maintenance personnel is not enough for all repairs needed and project require additional funds for all needs. We prioritized emergency repairs on occupied units and vacant units. We met with owner representative to discuss alternatives for additional funds for the project and they are in the process to evaluate them. Instructions were imparted to the project Administrator to inspect all units semiannually rather than annually, according to the Management Agent?s Procedures, starting on January 2023. In addition, we have created working groups from other projects to assist in the repairs to the units. We will continue following up Owner representative for another source of funds to comply with all Federal Regulations.
2021-001
FAC accepted this audit on September 29, 2022 — management decision was due March 29, 2023.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
GSA_MIGRATION
2020-001
FAC accepted this audit on November 28, 2021 — management decision was due May 28, 2022.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
GSA_MIGRATION
2020-001
FAC accepted this audit on May 3, 2021 — management decision was due November 3, 2021.
The Project did not perform annual housing unit inspections in order to assure that contract units were in compliance with housing quality standards and were in decent, safe, and sanitary conditions and in good repair (DSS-GR). Context: Out of a total of seven (7) units whose maintenance files were selected, we found four (4) units in which the annual inspection was not performed. Criteria: As per 24 CFR 884.217, in order to maintain the property in decent, safe, sanitary and in good repair as required by HUD, the PHA must perform annual inspections of the contract units. Cause: The Project?s employees did not perform the annual housing quality inspection of the contract units. Effect: Housing units were not inspected annually to determine whether they meet DSS-GR and any needed repairs were not completed timely. Auditor?s recommendation: The Project?s management should implement internal controls and procedures to assure that all units have up-to-date inspections, and any needed repairs are completed timely, in compliance with the provisions mentioned above. Views of Responsible officials and corrective actions: The annual inspections of the four (4) units examined were not performed due to the Covid-19 pandemic and the lock down established by the Government of Puerto Rico. We expect to resume physical inspections on or about May 2021. Audit Status: Unresolved
Show full finding ▾Hide full finding ▴2020-001 Type of finding: Federal Award. Situation: Significant deficiency; compliance with federal regulations. Federal Program: Section 8 Housing Assistance Payments (CFDA 14.195) Compliance Requirements: Special tests and provisions ? housing quality standards. Prior-Year(s) Audit Finding(s): None. Questioned Costs: Not determined. Condition: The Project did not perform annual housing unit inspections in order to assure that contract units were in compliance with housing quality standards and were in decent, safe, and sanitary conditions and in good repair (DSS-GR). Context: Out of a total of seven (7) units whose maintenance files were selected, we found four (4) units in which the annual inspection was not performed. Criteria: As per 24 CFR 884.217, in order to maintain the property in decent, safe, sanitary and in good repair as required by HUD, the PHA must perform annual inspections of the contract units. Cause: The Project?s employees did not perform the annual housing quality inspection of the contract units. Effect: Housing units were not inspected annually to determine whether they meet DSS-GR and any needed repairs were not completed timely. Auditor?s recommendation: The Project?s management should implement internal controls and procedures to assure that all units have up-to-date inspections, and any needed repairs are completed timely, in compliance with the provisions mentioned above. Views of Responsible officials and corrective actions: The annual inspections of the four (4) units examined were not performed due to the Covid-19 pandemic and the lock down established by the Government of Puerto Rico. We expect to resume physical inspections on or about May 2021. Audit Status: Unresolved
The annual inspections of the four (4) units examined were not performed due to the Covid-19 pandemic and the lock down established by the Government of Puerto Rico. We expect to resume physical inspections on or about May 2021.
FAC accepted this audit on March 3, 2020 — management decision was due September 3, 2020.
FAC accepted this audit on March 28, 2019 — management decision was due September 28, 2019.
FAC accepted this audit on March 30, 2017 — management decision was due September 30, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
Browse other Single Audit organizations in Puerto Rico →
Track your findings and corrective action plans across audit cycles.
Start tracking findings →Monitor subrecipient audit findings and filing records.
Start monitoring →© 2026 Single Audit Intelligence. All data is public domain.
