FAC Explorer

Audit 10431

FY End
2022-12-31
Total Expended
$1.11M
Findings
12
Programs
4
Organization: YMCA De San Juan (the Young Men's Christian Association of San Juan, Inc.) (PR)
Year: 2022 Accepted: 2024-01-09
Auditor: Nma Certified Public Accountants Psc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7977 2022-001 Material Weakness - L
7978 2022-002 Material Weakness - L
7979 2022-003 Significant Deficiency - L
7980 2022-003 Significant Deficiency - L
7981 2022-004 Significant Deficiency - L
7982 2022-004 Significant Deficiency - L
584419 2022-001 Material Weakness - L
584420 2022-002 Material Weakness - L
584421 2022-003 Significant Deficiency - L
584422 2022-003 Significant Deficiency - L
584423 2022-004 Significant Deficiency - L
584424 2022-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.269 Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (cdbg-Dr) $519,740 Yes 4
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $511,967 Yes 2
93.569 Community Services Block Grant $63,814 - 0
10.558 Child and Adult Care Food Program $12,985 - 0

Contacts

Name Title Type
L5DURUS16L46 Mabel Roman Auditee
7877287200 Fernando Navarro Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Summary of Significant Accounting Policies Expenditures reported on the Federal Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain expenditures are not allowable or are limited as to reimbursement. Indirect costs The Organization does not have a federally negotiated indirect cost rate applicable to the programs and therefore there is no election to the 10 percent de minims cost rate as defined in 2 CFR 200.414. In-kind Expenses In-kind and matching expenses are non-federal share of certain program costs, therefore are not included in the accompanying Schedule. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the “Federal Schedule” or "SEFA") presents the activities of the federal financial assistance programs of the YMCA which have been financed by the U.S. Government. The information in this Federal Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Federal Schedule may differ from amounts presented in or used in preparation of the basic financial statements. All financial assistance received directly from federal agencies, as well as financial assistance passed through other governmental agencies or nonprofit organizations, are included on the Federal Schedule. Because the Federal Schedule presents only a selected portion of the activities of the YMCA, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of the YMCA. The Assistance Listing Number and pass through award numbers are presented where available and applicable.
Title: Summary of Significant Accounting Policies Accounting Policies: Summary of Significant Accounting Policies Expenditures reported on the Federal Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain expenditures are not allowable or are limited as to reimbursement. Indirect costs The Organization does not have a federally negotiated indirect cost rate applicable to the programs and therefore there is no election to the 10 percent de minims cost rate as defined in 2 CFR 200.414. In-kind Expenses In-kind and matching expenses are non-federal share of certain program costs, therefore are not included in the accompanying Schedule. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Expenditures reported on the Federal Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain expenditures are not allowable or are limited as to reimbursement.
Title: Indirect costs Accounting Policies: Summary of Significant Accounting Policies Expenditures reported on the Federal Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain expenditures are not allowable or are limited as to reimbursement. Indirect costs The Organization does not have a federally negotiated indirect cost rate applicable to the programs and therefore there is no election to the 10 percent de minims cost rate as defined in 2 CFR 200.414. In-kind Expenses In-kind and matching expenses are non-federal share of certain program costs, therefore are not included in the accompanying Schedule. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The Organization does not have a federally negotiated indirect cost rate applicable to the programs and therefore there is no election to the 10 percent de minims cost rate as defined in 2 CFR 200.414.
Title: In-kind Expenses Accounting Policies: Summary of Significant Accounting Policies Expenditures reported on the Federal Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain expenditures are not allowable or are limited as to reimbursement. Indirect costs The Organization does not have a federally negotiated indirect cost rate applicable to the programs and therefore there is no election to the 10 percent de minims cost rate as defined in 2 CFR 200.414. In-kind Expenses In-kind and matching expenses are non-federal share of certain program costs, therefore are not included in the accompanying Schedule. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. In-kind and matching expenses are non-federal share of certain program costs, therefore are not included in the accompanying Schedule.
Title: Federal awards expenditures reconciliation Accounting Policies: Summary of Significant Accounting Policies Expenditures reported on the Federal Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain expenditures are not allowable or are limited as to reimbursement. Indirect costs The Organization does not have a federally negotiated indirect cost rate applicable to the programs and therefore there is no election to the 10 percent de minims cost rate as defined in 2 CFR 200.414. In-kind Expenses In-kind and matching expenses are non-federal share of certain program costs, therefore are not included in the accompanying Schedule. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Reconciliation of total federal award expenditures per Schedule of Expenditures of federal Awards and Statements of Activities as of December 31, 2022 is as follow: Expenses per Statement of Activities and Changes in Net Assets $2,961,347 Plus: Federal property and equipment capitalized during 2022 $511,967 Less: Non-federal expenditures $2,170,662 Less: In-Kind expenses $194,146 Total expenditure per Schedule of Expenditures of Federal Awards $1,108,506

Finding Details

Finding 2022-001
Finding 2022-001: Correction of Prior Year Error Criteria: The YMCA should have adequate internal controls over financial reporting such that material misstatements of the financial statements would be prevented, detected and corrected on a timely basis. Condition: The YMCA had a prior period adjustment to correct balances, including the understatement of previously reported accounts receivable and understatement of net assets as of December 31, 2021. Cause: The YMCA presents as revenue during the year 2022 invoices that corresponds to services provided during the year 2021, resulting in the understatement of prior year accounts receivables. Effect or Potential Effect: Net assets were restated as of January 1, 2022, for the correction of the error. This finding is a material weakness in internal control over financial reporting. Recommendation: We recommend that Reporting Area YMCA improve its controls over financial reporting to prevent, detect and correct material misstatements of the financial statements on a timely basis.
Finding 2022-002
Finding 2022-002: Revenue Recognition Criteria: Generally accepted accounting principles require contributions and grants to be recognized when cash, securities, or other assets, or unconditional promise to give is received. Unless a contribution has both a right of return/release and a measurable barrier that must be overcome in order to be entitled to the funds, it must be recorded upon receipt of the cash. Condition: The Organization recorded various contributions and grants as deferred revenue that should have been recognized as revenue totaling approximately $300,000. Cause: There are certain procedures not in place to analyze the various types of contributions and grant agreements for proper recording. Effect or Potential Effect: Contributions and grant revenue were materially understated before a correcting audit adjustment was made. Recommendation: We recommend policies and procedures be implemented that include a review of all new grant agreements by management to determine the proper accounting treatment based on the type of grant received, before recording in the financial statements.
Finding 2022-003
Finding 2022-003: Schedule of Expenditures of Federal Awards presentation Criteria: 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. Also the Compliance Supplement identifies that: "Transfers of Federal awards to another component of the same auditee under 2 CFR part 200, subpart F, do not constitute a subrecipient or contractor relationship". Condition: The Organization provided unadjusted balance for expenditures of federal awards for the year ended December 31, 2022 for audit purposes. Cause: There are certain procedures not in place to analyze the expenditures incurred for proper presentation by program. Effect or Potential Effect: Expenditures of federal awards were overstated before correcting reclassifications and adjustments were made. Recommendation: We recommend policies and procedures be implemented that include a review of all expenditures of federal awards by management to determine the proper reporting by program and proper accounting period treatment based on the type of expense incurred, before presentation in the Schedule of Expenditures of Federal Awards.
Finding 2022-003
Finding 2022-003: Schedule of Expenditures of Federal Awards presentation Criteria: 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. Also the Compliance Supplement identifies that: "Transfers of Federal awards to another component of the same auditee under 2 CFR part 200, subpart F, do not constitute a subrecipient or contractor relationship". Condition: The Organization provided unadjusted balance for expenditures of federal awards for the year ended December 31, 2022 for audit purposes. Cause: There are certain procedures not in place to analyze the expenditures incurred for proper presentation by program. Effect or Potential Effect: Expenditures of federal awards were overstated before correcting reclassifications and adjustments were made. Recommendation: We recommend policies and procedures be implemented that include a review of all expenditures of federal awards by management to determine the proper reporting by program and proper accounting period treatment based on the type of expense incurred, before presentation in the Schedule of Expenditures of Federal Awards.
Finding 2022-004
Finding 2022-004: Writing internal control policies and procedures Criteria: As stated in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), § 200.303 Internal controls, “the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). (b) Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal awards.” Condition: At the initial phase of the audit procedures for the year ended December 31, 2022, YMCA management has not readily available the written internal control procedures and policies. Cause: The YMCA has not readily available the written internal control procedures and policies that summaries the monitoring and supervision of the compliance of the internal controls over the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Effect or Potential Effect: Failure to meet the requirement of written internal control and procedures could be considered by the grantor and the pass-through entity as a noncompliance with the above-mentioned criteria and could lead to administrative sanctions. Recommendation: We recommend YMCA's management to expand written evidence over its internal control procedures in order to provide adequate evidence to ascertain that the procedures are performed as required.
Finding 2022-004
Finding 2022-004: Writing internal control policies and procedures Criteria: As stated in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), § 200.303 Internal controls, “the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). (b) Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal awards.” Condition: At the initial phase of the audit procedures for the year ended December 31, 2022, YMCA management has not readily available the written internal control procedures and policies. Cause: The YMCA has not readily available the written internal control procedures and policies that summaries the monitoring and supervision of the compliance of the internal controls over the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Effect or Potential Effect: Failure to meet the requirement of written internal control and procedures could be considered by the grantor and the pass-through entity as a noncompliance with the above-mentioned criteria and could lead to administrative sanctions. Recommendation: We recommend YMCA's management to expand written evidence over its internal control procedures in order to provide adequate evidence to ascertain that the procedures are performed as required.
Finding 2022-001
Finding 2022-001: Correction of Prior Year Error Criteria: The YMCA should have adequate internal controls over financial reporting such that material misstatements of the financial statements would be prevented, detected and corrected on a timely basis. Condition: The YMCA had a prior period adjustment to correct balances, including the understatement of previously reported accounts receivable and understatement of net assets as of December 31, 2021. Cause: The YMCA presents as revenue during the year 2022 invoices that corresponds to services provided during the year 2021, resulting in the understatement of prior year accounts receivables. Effect or Potential Effect: Net assets were restated as of January 1, 2022, for the correction of the error. This finding is a material weakness in internal control over financial reporting. Recommendation: We recommend that Reporting Area YMCA improve its controls over financial reporting to prevent, detect and correct material misstatements of the financial statements on a timely basis.
Finding 2022-002
Finding 2022-002: Revenue Recognition Criteria: Generally accepted accounting principles require contributions and grants to be recognized when cash, securities, or other assets, or unconditional promise to give is received. Unless a contribution has both a right of return/release and a measurable barrier that must be overcome in order to be entitled to the funds, it must be recorded upon receipt of the cash. Condition: The Organization recorded various contributions and grants as deferred revenue that should have been recognized as revenue totaling approximately $300,000. Cause: There are certain procedures not in place to analyze the various types of contributions and grant agreements for proper recording. Effect or Potential Effect: Contributions and grant revenue were materially understated before a correcting audit adjustment was made. Recommendation: We recommend policies and procedures be implemented that include a review of all new grant agreements by management to determine the proper accounting treatment based on the type of grant received, before recording in the financial statements.
Finding 2022-003
Finding 2022-003: Schedule of Expenditures of Federal Awards presentation Criteria: 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. Also the Compliance Supplement identifies that: "Transfers of Federal awards to another component of the same auditee under 2 CFR part 200, subpart F, do not constitute a subrecipient or contractor relationship". Condition: The Organization provided unadjusted balance for expenditures of federal awards for the year ended December 31, 2022 for audit purposes. Cause: There are certain procedures not in place to analyze the expenditures incurred for proper presentation by program. Effect or Potential Effect: Expenditures of federal awards were overstated before correcting reclassifications and adjustments were made. Recommendation: We recommend policies and procedures be implemented that include a review of all expenditures of federal awards by management to determine the proper reporting by program and proper accounting period treatment based on the type of expense incurred, before presentation in the Schedule of Expenditures of Federal Awards.
Finding 2022-003
Finding 2022-003: Schedule of Expenditures of Federal Awards presentation Criteria: 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. Also the Compliance Supplement identifies that: "Transfers of Federal awards to another component of the same auditee under 2 CFR part 200, subpart F, do not constitute a subrecipient or contractor relationship". Condition: The Organization provided unadjusted balance for expenditures of federal awards for the year ended December 31, 2022 for audit purposes. Cause: There are certain procedures not in place to analyze the expenditures incurred for proper presentation by program. Effect or Potential Effect: Expenditures of federal awards were overstated before correcting reclassifications and adjustments were made. Recommendation: We recommend policies and procedures be implemented that include a review of all expenditures of federal awards by management to determine the proper reporting by program and proper accounting period treatment based on the type of expense incurred, before presentation in the Schedule of Expenditures of Federal Awards.
Finding 2022-004
Finding 2022-004: Writing internal control policies and procedures Criteria: As stated in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), § 200.303 Internal controls, “the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). (b) Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal awards.” Condition: At the initial phase of the audit procedures for the year ended December 31, 2022, YMCA management has not readily available the written internal control procedures and policies. Cause: The YMCA has not readily available the written internal control procedures and policies that summaries the monitoring and supervision of the compliance of the internal controls over the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Effect or Potential Effect: Failure to meet the requirement of written internal control and procedures could be considered by the grantor and the pass-through entity as a noncompliance with the above-mentioned criteria and could lead to administrative sanctions. Recommendation: We recommend YMCA's management to expand written evidence over its internal control procedures in order to provide adequate evidence to ascertain that the procedures are performed as required.
Finding 2022-004
Finding 2022-004: Writing internal control policies and procedures Criteria: As stated in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), § 200.303 Internal controls, “the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). (b) Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal awards.” Condition: At the initial phase of the audit procedures for the year ended December 31, 2022, YMCA management has not readily available the written internal control procedures and policies. Cause: The YMCA has not readily available the written internal control procedures and policies that summaries the monitoring and supervision of the compliance of the internal controls over the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Effect or Potential Effect: Failure to meet the requirement of written internal control and procedures could be considered by the grantor and the pass-through entity as a noncompliance with the above-mentioned criteria and could lead to administrative sanctions. Recommendation: We recommend YMCA's management to expand written evidence over its internal control procedures in order to provide adequate evidence to ascertain that the procedures are performed as required.