No compliance test for 1602 program in latest DBAS audit
An independent audit of the Development Bank of American Samoa’s (DBAS) fiscal year 2012 financial statement didn’t include a compliance test of the federally funded 1602 program, according to the FY 2012 audit report by the auditing firm of RC Holsinger Associates.
“Per the U.S. Department of Treasury, the Program could be audited at the discretion of management. Management and its cognizant agency, Department of Interior, have decided that this Program did not need to be audited,” the auditors states. (Identical information was also cited in the DBAS’ FY 2011 audit report.)
American Samoa, through DBAS which administered Section 1602, got $30.77 million in grant funds which were fully sub-awarded in 2010 to local property owners for the construction, acquisition, or rehabilitation of low income rental units, the FY 2012 audit states.
Additionally, DBAS tracks the disbursements of the grant funds to the sub-awardees. Moreover, the bank receives a management fee for the administration of the low income housing program. Administration includes overseeing rentals and receiving a compliance monitoring fee of $40 per year per unit for each project owner.
Applications for Section 1602 sub-awards were accepted beginning in September 2010 and all sub-awards were made by December 31, 2010. Grant funds were then fully disbursed by December 31, 2011. Over 450 low income rental units are to be built through the Section 1602 program. Construction by some sub-awardees is ongoing and expected to be completed in 2013, the audit report states.
More details in tomorrow’s edition on the FY 2012 audit.