Audit 296354

FY End
2023-06-30
Total Expended
$6.69M
Findings
2
Programs
10
Organization: Municipality of Moca (PR)
Year: 2023 Accepted: 2024-03-21

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
382748 2023-002 Significant Deficiency - L
959190 2023-002 Significant Deficiency - L

Contacts

Name Title Type
UQEJJKL2KLE5 Veronica Hernandez Auditee
7878773560 CPA Marco Rivera Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures related to Disaster Grants – Public Assistance 97-036 are recognized when incurred and approved by the granting agency. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Municipality under programs of the federal government for the year ended June 30, 2023. The information in this 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 schedule may differ from the amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Municipality, it is not intended to and does not present the financial position and changes in net position of the Municipality.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures related to Disaster Grants – Public Assistance 97-036 are recognized when incurred and approved by the granting agency. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures related to Disaster Grants – Public Assistance 97-036 are recognized when incurred and approved by the granting agency.
Title: INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures related to Disaster Grants – Public Assistance 97-036 are recognized when incurred and approved by the granting agency. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance.
Title: RECONCILIATION OF EXPENDITURES PRESENTED IN THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE EXPENDITURES PRESENTED IN THE BASIC FINANCIAL STATEMENT Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures related to Disaster Grants – Public Assistance 97-036 are recognized when incurred and approved by the granting agency. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance The expenditures of the schedule are included in the Municipality’s basic financial statements. The reconciliation of expenditures in the basic financial statements to the Schedule of Expenditures of Federal Awards is as follows: Total federal expenditures per schedule $6,694,636 Federal expenditures per basic financial statements included within: General fund $135,659 Huracan Maria fund 201,689 CARES Act fund 354,381 ARPA fund 4,987,850 Other governmental funds 1,015,057 Total $6,694,636
Title: OUTSTANDING LOANS OF FEDERAL FUNDS Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures related to Disaster Grants – Public Assistance 97-036 are recognized when incurred and approved by the granting agency. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance The following is a summary of outstanding loans at cost by Assistance Listing Number as of June 30, 2023. Federal funded loans provided under these programs are included as expenditure on the schedule of expenditure of Federal Awards. Per Uniform Guidance, loans proceed that were received and expended in prior years are not considered federal awards expended (and thus not shown on the schedule of expenditures of federal awards) as those loans do not include continuing compliance requirements other than repayment of the loans. The Municipality is required to identify in the notes to the schedule of expenditures awards the balances outstanding at the end of the period. Community Facilities Loans and Grants $2,984,530

Finding Details

Finding: 2023-002 Federal Agency: U.S Department of Treasury Pass Through Agency: Puerto Rico Department of Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds CFDA Number: 21.027 Compliance Requirement: Reporting Type of Finding: Noncompliance and Significant Deficiency Responsible Official: Verónica Hernández, Finance Director Condition During our audit, as part of our procedures we requested reports submitted and compare the expenditures per report with accounting records for fair presentation. We noted that reports contain certain differences when compared with accounting records. Criteria In accordance with applicable reporting requirements, they had to submitted a report name Project and Expenditure Report depend of the fund approved they had to submitted quarterly or annually. Cause The Municipality did include all the expenditures in this report. Effect The Municipality is in noncompliance with the applicable reporting requirements. Recommendation The Municipality must verify the expenses with the accounting system before submission of reports and determine whether the information in the system is complete and accurate. Questioned Costs None
Finding: 2023-002 Federal Agency: U.S Department of Treasury Pass Through Agency: Puerto Rico Department of Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds CFDA Number: 21.027 Compliance Requirement: Reporting Type of Finding: Noncompliance and Significant Deficiency Responsible Official: Verónica Hernández, Finance Director Condition During our audit, as part of our procedures we requested reports submitted and compare the expenditures per report with accounting records for fair presentation. We noted that reports contain certain differences when compared with accounting records. Criteria In accordance with applicable reporting requirements, they had to submitted a report name Project and Expenditure Report depend of the fund approved they had to submitted quarterly or annually. Cause The Municipality did include all the expenditures in this report. Effect The Municipality is in noncompliance with the applicable reporting requirements. Recommendation The Municipality must verify the expenses with the accounting system before submission of reports and determine whether the information in the system is complete and accurate. Questioned Costs None