FAC Explorer

Audit 21496

FY End
2022-06-30
Total Expended
$10.06M
Findings
2
Programs
3
Organization: Puerto Rico Medical Services Administration (PR)
Year: 2022 Accepted: 2023-03-28
Auditor: Galindez LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
26109 2022-001 - - A
602551 2022-001 - - A

Programs

ALN Program Spent Major Findings
21.019 Coronavirus Relief Fund $5.49M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.13M Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $436,777 - 0

Contacts

Name Title Type
QFJ5YZCKSJM9 Paul Barreras Auditee
7877773535 Marcos Claudio Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1 - Basis of presentationThe accompanying schedule of expenditures of federal award (the Schedule) includes the federal grant activity of the Puerto Rico Medical Services Administration (the Administration) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations(CFR) 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 operation of the Administration, it is not intended to and does not present the financial position, changes in net assets and cash flows of the Administration.Note 2 - Summary of significant accounting policiesa. The Schedule is prepared from the Administrations accounting records.b. The financial transactions are recorded by the Administration in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America.c. Expenditures 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 may or may not be allowable or may be limited as to reimbursement.d. The Administration has elected not to use the 10-percent de minimis indirect costs rate as allowed under the Uniform Guidance.Note 3 - Assistance Listing NumberAssistance Listing numbers included in the Schedule are determined based on the program name, review of grant contract information and the public descriptions of federal assistance listings published by the U.S. Government on sam.gov. Assistance Listing numbers are presented for those programs for which such numbers were available.Note 4 - Major federal programsThe major federal programs are identified in the Summary of Auditors Results Section in the Schedule of Findings and Questioned Costs. Federal programs are presented by federal agency De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Finding No. 2022?001 ? Activities Allowed or Unallowed, Eligible Uses ? Premium Pay Criteria According to the 31 CFR Subtitle A Part 35 Subpart 35.6 (c)(1) A recipient may use funds to provide premium pay to eligible workers of the recipient who perform essential work or to provide grants to eligible employers that have eligible workers who perform essential work, eligible workers performing essential work during the COVID-19 public health emergency. A recipient uses premium pay or grants provided to eligible workers performing essential work during the COVID-19 public health emergency if: (1) The eligible worker's total wages and remuneration, including the premium pay, is less than or equal to 150 percent of the greater of such eligible worker's residing State's or county's average annual wage for all occupations as defined by the Bureau of Labor Statistics' Occupational Employment and Wage Statistics. Condition During our examination, we noted six (6) instances, which based on the regulation previously indicated, the premium pay was paid to employees whom wages are higher than the 150 percent of the Puerto Rico median annual wage of $30,750. Cause As part of the eligibility criteria to provide Premium Pay, the Administration did not consider the eligible worker?s wages criteria as eligibility requirement in the Premium Pay distribution to employees. The Administration indicates they did not consider these criteria because the Puerto Rico Health Department was exempt of this requirement and as part of this agency, they believe to be exempt too. Effect As a result of this condition, the U.S. Department of Treasury may request the return of funds, issue warnings and/or impose penalties to the Administration. Questioned Cost The known questioned cost was calculated by the amount disbursed ($2,000) to the ineligible employees (185) is equal to $370,000. Context Of the 1,471 employees that received the Premium Pay, we selected 37 employees for testing and noted six (6) instances of noncompliance. When we assessed the entire population the total number of cases amounted to one hundred eighty-five (185) employees that exceed the allowed salary to receive the Premium Pay. Identification of a Repeat Finding This is not a repeat finding from the immediate previous audit. Recommendation The management of the Puerto Rico Medical Services Administration should reinforce its procedures of the administration of federal funds to ensure the compliance with the requirements with each program. Also, the Administration should establish communication with the Health Department of Puerto Rico in order to obtain instructions for the correction of the non-compliance event and the related questioned cost. Views of Responsible Officials of the Auditee and Planned Corrective Actions Management of the Administration does not agree with this finding. Please refer to the corrective action plan on page 91.
Finding 2022-001
Finding No. 2022?001 ? Activities Allowed or Unallowed, Eligible Uses ? Premium Pay Criteria According to the 31 CFR Subtitle A Part 35 Subpart 35.6 (c)(1) A recipient may use funds to provide premium pay to eligible workers of the recipient who perform essential work or to provide grants to eligible employers that have eligible workers who perform essential work, eligible workers performing essential work during the COVID-19 public health emergency. A recipient uses premium pay or grants provided to eligible workers performing essential work during the COVID-19 public health emergency if: (1) The eligible worker's total wages and remuneration, including the premium pay, is less than or equal to 150 percent of the greater of such eligible worker's residing State's or county's average annual wage for all occupations as defined by the Bureau of Labor Statistics' Occupational Employment and Wage Statistics. Condition During our examination, we noted six (6) instances, which based on the regulation previously indicated, the premium pay was paid to employees whom wages are higher than the 150 percent of the Puerto Rico median annual wage of $30,750. Cause As part of the eligibility criteria to provide Premium Pay, the Administration did not consider the eligible worker?s wages criteria as eligibility requirement in the Premium Pay distribution to employees. The Administration indicates they did not consider these criteria because the Puerto Rico Health Department was exempt of this requirement and as part of this agency, they believe to be exempt too. Effect As a result of this condition, the U.S. Department of Treasury may request the return of funds, issue warnings and/or impose penalties to the Administration. Questioned Cost The known questioned cost was calculated by the amount disbursed ($2,000) to the ineligible employees (185) is equal to $370,000. Context Of the 1,471 employees that received the Premium Pay, we selected 37 employees for testing and noted six (6) instances of noncompliance. When we assessed the entire population the total number of cases amounted to one hundred eighty-five (185) employees that exceed the allowed salary to receive the Premium Pay. Identification of a Repeat Finding This is not a repeat finding from the immediate previous audit. Recommendation The management of the Puerto Rico Medical Services Administration should reinforce its procedures of the administration of federal funds to ensure the compliance with the requirements with each program. Also, the Administration should establish communication with the Health Department of Puerto Rico in order to obtain instructions for the correction of the non-compliance event and the related questioned cost. Views of Responsible Officials of the Auditee and Planned Corrective Actions Management of the Administration does not agree with this finding. Please refer to the corrective action plan on page 91.