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Puerto Rico Claimed Unallowable Community Services Block Grant Recovery Act Costs for Instituto Socio-Económico, Inc.

Under the American Recovery and Reinvestment Act of 2009 (Recovery Act), the Commonwealth of Puerto Rico Department of the Family (the department) was awarded $42.1 million for its Community Services Block Grant (CSBG) program. For the period October 8, 2009, through September 30, 2010, the department awarded Instituto Socio-Económico Comunitario, Inc. (INSEC), $14.8 million in CSBG Recovery Act funds.

Of the $4.13 million in CSBG Recovery Act costs that the department claimed on behalf of INSEC and that we reviewed, $4.1 million was allowable under the terms of the grant award and applicable Federal requirements. However, the department claimed $31,000 in costs for services on behalf of INSEC that were unallowable because the services were not provided within ACF's mandated timeframe. The department also claimed $255,000 in CSBG Recovery Act grant funds which it awarded to INSEC; however, INSEC did not expend the grant funds and, at the end of our fieldwork, the department had not returned these funds to the Federal Government.

Filed under: Administration for Children and Families