FAC Explorer

Audit 17885

FY End
2022-12-31
Total Expended
$3.24M
Findings
2
Programs
6
Organization: La Perla De Gran Precio, Inc. (PR)
Year: 2022 Accepted: 2023-09-28
Auditor: Zuniga CPA LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
23172 2022-001 Significant Deficiency - I
599614 2022-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
93.914 Hiv Emergency Relief Project Grants $776,210 - 0
14.241 Housing Opportunities for Persons with Aids $768,378 - 0
14.267 Continuum of Care Program $744,184 Yes 1
14.231 Emergency Solutions Grant Program $605,661 - 0
16.575 Crime Victim Assistance $233,519 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $48,055 - 0

Contacts

Name Title Type
N2DKMDLGBMT1 Hector L. Pagan Auditee
7872820012 Juan C Zuniga Hernandez Auditor
No contacts on file

Notes to SEFA

Accounting Policies: 1)Basis of presentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal awards activities of La Perla de Gran Precio, Inc. (the Organization) under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of La Perla de Gran Precio, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of La Perla de Gran Precio, Inc.2)Summary of significant accounting policiesExpenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Negative amounts shown in the Schedule, if any, represents adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Additional policies are the following:(a)The financial transactions are recorded by the Organization in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. (b)Expenditures are recognized in the accounting period in which the liability is incurred, if measurable, or when paid, whichever occurs first.3)Assistance listing numberThe assistance listing numbers included in the Schedule are determined based on the programs name. The assistance listing number is a program identification, whose first two digits identify the federal department or agency that administers the program and thee last three numbers are assigned by numerical sequence. 4)Major federal programsMajor programs are identified in the Summary of Audits Results Section of the Schedules of Findings and Questioned Cost.5)Indirect costsThe 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 200.414.6)Distinction between Type A and Type B ProgramsThe dollar threshold for Type A and Type B programs amounted to $750,000. 7)In-kind expenses and matching costsIn-kind and matching expenses are non-federal share of certain program costs, therefore are not included in the accompanying Schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Finding Number: 2022-001 Agency: U.S. Department of Housing and Urban Development Federal program: Continuum of Care Program ALN: 14.267 Comliance requirement: Procurement Category: Compliance Questioned Costs: None Repeat finding: No Condition: During our audit procedures, we noted that four (4) transactions out of nine (9) examined did not include purchase orders. These four transactions were related to purchases which unit costs were above $250. Additionally, two (2) transactions out of nine (9) examined did not include documentation of verbal or written quotations for those transactions below $250. Criteria: 2 CFR ?200.318 requires that non-Federal entities must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. Non-Federal entities also must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. Cause: Management is not following its internal control procedures established in its written procedures. The organization?s written procedures establish that all purchases over $250 require a purchase order (PO) as part of its procurement process. Furthermore, these procedures establish that for transactions under $250 require three quotations whether verbal or written. Effect: Failure to follow internal controls in the procurement process can have significant consequences for an organization. Internal controls are designed to safeguard the organization's assets, ensure compliance with policies and regulations, and prevent fraud, errors, and inefficiencies. Recommendation: To mitigate these consequences, organizations should establish and enforce robust internal controls for the procurement process, regularly review and update these controls, provide training to employees, and promote a culture of compliance and ethical behavior.
Finding 2022-001
Finding Number: 2022-001 Agency: U.S. Department of Housing and Urban Development Federal program: Continuum of Care Program ALN: 14.267 Comliance requirement: Procurement Category: Compliance Questioned Costs: None Repeat finding: No Condition: During our audit procedures, we noted that four (4) transactions out of nine (9) examined did not include purchase orders. These four transactions were related to purchases which unit costs were above $250. Additionally, two (2) transactions out of nine (9) examined did not include documentation of verbal or written quotations for those transactions below $250. Criteria: 2 CFR ?200.318 requires that non-Federal entities must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. Non-Federal entities also must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. Cause: Management is not following its internal control procedures established in its written procedures. The organization?s written procedures establish that all purchases over $250 require a purchase order (PO) as part of its procurement process. Furthermore, these procedures establish that for transactions under $250 require three quotations whether verbal or written. Effect: Failure to follow internal controls in the procurement process can have significant consequences for an organization. Internal controls are designed to safeguard the organization's assets, ensure compliance with policies and regulations, and prevent fraud, errors, and inefficiencies. Recommendation: To mitigate these consequences, organizations should establish and enforce robust internal controls for the procurement process, regularly review and update these controls, provide training to employees, and promote a culture of compliance and ethical behavior.