FAC Explorer

Audit 296516

FY End
2023-06-30
Total Expended
$37.67M
Findings
8
Programs
3
Organization: Socioeconomic and Community Development Office (PR)
Year: 2023 Accepted: 2024-03-21
Auditor: Lopez Vega CPA Psc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
383325 2023-002 Material Weakness Yes M
383326 2023-002 Material Weakness Yes M
383327 2023-002 Material Weakness Yes M
383328 2023-002 Material Weakness Yes M
959767 2023-002 Material Weakness Yes M
959768 2023-002 Material Weakness Yes M
959769 2023-002 Material Weakness Yes M
959770 2023-002 Material Weakness Yes M

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $556,064 - 0
93.569 Community Services Block Grant $378,327 Yes 1
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $145,074 - 0

Contacts

Name Title Type
ZTSEK22R2M57 Natalia Rios Auditee
7879777060 Angel Alfredo Lopez Vega Auditor
No contacts on file

Notes to SEFA

Title: GENERAL Accounting Policies: Expenditures presented on the Schedule are reported on the cash basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: The Office has elected not to use the 10% minimum cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2023. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the funds expended by the Socioeconomic and Community Development Office (Office) from all federal programs for the year ended June 30, 2023. The Office’s reporting entity is defined in Note 1 to the financial statement.
Title: BASIS OF PRESENTATION Accounting Policies: Expenditures presented on the Schedule are reported on the cash basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: The Office has elected not to use the 10% minimum cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2023. The accompanying Schedule of Expenditures of Federal Awards 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 and was prepared following the modified accrual basis of accounting.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures presented on the Schedule are reported on the cash basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: The Office has elected not to use the 10% minimum cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2023. Expenditures presented on the Schedule are reported on the cash basis of accounting. 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.
Title: FEDERAL ASSISTANCE LISTING NUMBER AND PASS-THROUGH ENTITY IDENTIFYING NUMBER Accounting Policies: Expenditures presented on the Schedule are reported on the cash basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: The Office has elected not to use the 10% minimum cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2023. The Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five-digit number assigned in the awarding document for all federal assistance award mechanisms, including federal grants and cooperative agreements. Assistance listings are detailed public descriptions of federal programs that provide grants, loans, scholarships, insurance, and other types of assistance awards. The Sam.gov assistance listing is the publicly available online database showing all available Federally-funded programs. State or local government redistributions of federal awards to the Office, known as “pass–through awards”, should be treated by the Office as though they were received directly from the federal government. The Uniform Guidance requires the Schedule to include the name of the pass–through entity and the identifying number assigned by the pass-through entity for the federal awards received as a sub recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available.
Title: INDIRECT COST RATE Accounting Policies: Expenditures presented on the Schedule are reported on the cash basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: The Office has elected not to use the 10% minimum cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2023. The Office has elected not to use the 10% minimum cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2023.
Title: RECONCILIATION TO FINANCIAL STATEMENT Accounting Policies: Expenditures presented on the Schedule are reported on the cash basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: The Office has elected not to use the 10% minimum cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2023. Information reported in the accompanying Schedule of Expenditures of Federal Awards agreed with or has been reconciled to the information reported in the Office’s financial statement as follows:

Finding Details

Finding 2023-002
Federal Agency U.S. Department of Health and Human Services: Federal Program Title Community Services Block Grant (ALN 93.569): Compliance Requirement Subrecipient Monitoring (M): Type of finding Material Weakness in Internal Control (MW), Instance of Noncompliance (NC): This finding is similar to prior years finding 2022-002, 2021-002 and 2020-005.: Statement of Condition In our audit, we found that the Office, which provides funds to four (4) sub-recipients, failed to perform monitoring for any of them during the fiscal year 2022-2023, as well as in the two (2) previous years.: Criteria 42 USC 9914 (a)(1)(2), establishes that (a) In order to determine whether eligible entities meet the performance goals, administrative standards, financial management requirements, and other requirements of State. The State shall conduct the following reviews of eligible entities:(1) a full onsite review of each such entity at least once during each 3-year period, (2) an onsite review of each newly designated entity immediately after the completion of the first year in which such entity receives funds through the Community Services Block Grant Program (CSBG).: Cause of Condition The Internal Control Monitoring Program for Federal Funds under the CSBG establishes the guidelines over monitoring reports. However, the Office does not have sufficient staff to perform monitoring reviews to sub-recipients. Effect of Condition The Office cannot ensure that the delegated funds to the sub-recipients are being used to meet the goals and standards required by the State. Also, the Office is not in compliance with the 42 USC 9914 (a)(1)(2). Recommendation To enhance the effectiveness of current monitoring efforts, it is a requirement to uphold and reinforce the consistency of these activities. Sustaining systematic and regular monitoring practices is essential for ensuring continued compliance with regulations and the efficient management of funds. Questioned Cost None.
Finding 2023-002
Federal Agency U.S. Department of Health and Human Services: Federal Program Title Community Services Block Grant (ALN 93.569): Compliance Requirement Subrecipient Monitoring (M): Type of finding Material Weakness in Internal Control (MW), Instance of Noncompliance (NC): This finding is similar to prior years finding 2022-002, 2021-002 and 2020-005.: Statement of Condition In our audit, we found that the Office, which provides funds to four (4) sub-recipients, failed to perform monitoring for any of them during the fiscal year 2022-2023, as well as in the two (2) previous years.: Criteria 42 USC 9914 (a)(1)(2), establishes that (a) In order to determine whether eligible entities meet the performance goals, administrative standards, financial management requirements, and other requirements of State. The State shall conduct the following reviews of eligible entities:(1) a full onsite review of each such entity at least once during each 3-year period, (2) an onsite review of each newly designated entity immediately after the completion of the first year in which such entity receives funds through the Community Services Block Grant Program (CSBG).: Cause of Condition The Internal Control Monitoring Program for Federal Funds under the CSBG establishes the guidelines over monitoring reports. However, the Office does not have sufficient staff to perform monitoring reviews to sub-recipients. Effect of Condition The Office cannot ensure that the delegated funds to the sub-recipients are being used to meet the goals and standards required by the State. Also, the Office is not in compliance with the 42 USC 9914 (a)(1)(2). Recommendation To enhance the effectiveness of current monitoring efforts, it is a requirement to uphold and reinforce the consistency of these activities. Sustaining systematic and regular monitoring practices is essential for ensuring continued compliance with regulations and the efficient management of funds. Questioned Cost None.
Finding 2023-002
Federal Agency U.S. Department of Health and Human Services: Federal Program Title Community Services Block Grant (ALN 93.569): Compliance Requirement Subrecipient Monitoring (M): Type of finding Material Weakness in Internal Control (MW), Instance of Noncompliance (NC): This finding is similar to prior years finding 2022-002, 2021-002 and 2020-005.: Statement of Condition In our audit, we found that the Office, which provides funds to four (4) sub-recipients, failed to perform monitoring for any of them during the fiscal year 2022-2023, as well as in the two (2) previous years.: Criteria 42 USC 9914 (a)(1)(2), establishes that (a) In order to determine whether eligible entities meet the performance goals, administrative standards, financial management requirements, and other requirements of State. The State shall conduct the following reviews of eligible entities:(1) a full onsite review of each such entity at least once during each 3-year period, (2) an onsite review of each newly designated entity immediately after the completion of the first year in which such entity receives funds through the Community Services Block Grant Program (CSBG).: Cause of Condition The Internal Control Monitoring Program for Federal Funds under the CSBG establishes the guidelines over monitoring reports. However, the Office does not have sufficient staff to perform monitoring reviews to sub-recipients. Effect of Condition The Office cannot ensure that the delegated funds to the sub-recipients are being used to meet the goals and standards required by the State. Also, the Office is not in compliance with the 42 USC 9914 (a)(1)(2). Recommendation To enhance the effectiveness of current monitoring efforts, it is a requirement to uphold and reinforce the consistency of these activities. Sustaining systematic and regular monitoring practices is essential for ensuring continued compliance with regulations and the efficient management of funds. Questioned Cost None.
Finding 2023-002
Federal Agency U.S. Department of Health and Human Services: Federal Program Title Community Services Block Grant (ALN 93.569): Compliance Requirement Subrecipient Monitoring (M): Type of finding Material Weakness in Internal Control (MW), Instance of Noncompliance (NC): This finding is similar to prior years finding 2022-002, 2021-002 and 2020-005.: Statement of Condition In our audit, we found that the Office, which provides funds to four (4) sub-recipients, failed to perform monitoring for any of them during the fiscal year 2022-2023, as well as in the two (2) previous years.: Criteria 42 USC 9914 (a)(1)(2), establishes that (a) In order to determine whether eligible entities meet the performance goals, administrative standards, financial management requirements, and other requirements of State. The State shall conduct the following reviews of eligible entities:(1) a full onsite review of each such entity at least once during each 3-year period, (2) an onsite review of each newly designated entity immediately after the completion of the first year in which such entity receives funds through the Community Services Block Grant Program (CSBG).: Cause of Condition The Internal Control Monitoring Program for Federal Funds under the CSBG establishes the guidelines over monitoring reports. However, the Office does not have sufficient staff to perform monitoring reviews to sub-recipients. Effect of Condition The Office cannot ensure that the delegated funds to the sub-recipients are being used to meet the goals and standards required by the State. Also, the Office is not in compliance with the 42 USC 9914 (a)(1)(2). Recommendation To enhance the effectiveness of current monitoring efforts, it is a requirement to uphold and reinforce the consistency of these activities. Sustaining systematic and regular monitoring practices is essential for ensuring continued compliance with regulations and the efficient management of funds. Questioned Cost None.
Finding 2023-002
Federal Agency U.S. Department of Health and Human Services: Federal Program Title Community Services Block Grant (ALN 93.569): Compliance Requirement Subrecipient Monitoring (M): Type of finding Material Weakness in Internal Control (MW), Instance of Noncompliance (NC): This finding is similar to prior years finding 2022-002, 2021-002 and 2020-005.: Statement of Condition In our audit, we found that the Office, which provides funds to four (4) sub-recipients, failed to perform monitoring for any of them during the fiscal year 2022-2023, as well as in the two (2) previous years.: Criteria 42 USC 9914 (a)(1)(2), establishes that (a) In order to determine whether eligible entities meet the performance goals, administrative standards, financial management requirements, and other requirements of State. The State shall conduct the following reviews of eligible entities:(1) a full onsite review of each such entity at least once during each 3-year period, (2) an onsite review of each newly designated entity immediately after the completion of the first year in which such entity receives funds through the Community Services Block Grant Program (CSBG).: Cause of Condition The Internal Control Monitoring Program for Federal Funds under the CSBG establishes the guidelines over monitoring reports. However, the Office does not have sufficient staff to perform monitoring reviews to sub-recipients. Effect of Condition The Office cannot ensure that the delegated funds to the sub-recipients are being used to meet the goals and standards required by the State. Also, the Office is not in compliance with the 42 USC 9914 (a)(1)(2). Recommendation To enhance the effectiveness of current monitoring efforts, it is a requirement to uphold and reinforce the consistency of these activities. Sustaining systematic and regular monitoring practices is essential for ensuring continued compliance with regulations and the efficient management of funds. Questioned Cost None.
Finding 2023-002
Federal Agency U.S. Department of Health and Human Services: Federal Program Title Community Services Block Grant (ALN 93.569): Compliance Requirement Subrecipient Monitoring (M): Type of finding Material Weakness in Internal Control (MW), Instance of Noncompliance (NC): This finding is similar to prior years finding 2022-002, 2021-002 and 2020-005.: Statement of Condition In our audit, we found that the Office, which provides funds to four (4) sub-recipients, failed to perform monitoring for any of them during the fiscal year 2022-2023, as well as in the two (2) previous years.: Criteria 42 USC 9914 (a)(1)(2), establishes that (a) In order to determine whether eligible entities meet the performance goals, administrative standards, financial management requirements, and other requirements of State. The State shall conduct the following reviews of eligible entities:(1) a full onsite review of each such entity at least once during each 3-year period, (2) an onsite review of each newly designated entity immediately after the completion of the first year in which such entity receives funds through the Community Services Block Grant Program (CSBG).: Cause of Condition The Internal Control Monitoring Program for Federal Funds under the CSBG establishes the guidelines over monitoring reports. However, the Office does not have sufficient staff to perform monitoring reviews to sub-recipients. Effect of Condition The Office cannot ensure that the delegated funds to the sub-recipients are being used to meet the goals and standards required by the State. Also, the Office is not in compliance with the 42 USC 9914 (a)(1)(2). Recommendation To enhance the effectiveness of current monitoring efforts, it is a requirement to uphold and reinforce the consistency of these activities. Sustaining systematic and regular monitoring practices is essential for ensuring continued compliance with regulations and the efficient management of funds. Questioned Cost None.
Finding 2023-002
Federal Agency U.S. Department of Health and Human Services: Federal Program Title Community Services Block Grant (ALN 93.569): Compliance Requirement Subrecipient Monitoring (M): Type of finding Material Weakness in Internal Control (MW), Instance of Noncompliance (NC): This finding is similar to prior years finding 2022-002, 2021-002 and 2020-005.: Statement of Condition In our audit, we found that the Office, which provides funds to four (4) sub-recipients, failed to perform monitoring for any of them during the fiscal year 2022-2023, as well as in the two (2) previous years.: Criteria 42 USC 9914 (a)(1)(2), establishes that (a) In order to determine whether eligible entities meet the performance goals, administrative standards, financial management requirements, and other requirements of State. The State shall conduct the following reviews of eligible entities:(1) a full onsite review of each such entity at least once during each 3-year period, (2) an onsite review of each newly designated entity immediately after the completion of the first year in which such entity receives funds through the Community Services Block Grant Program (CSBG).: Cause of Condition The Internal Control Monitoring Program for Federal Funds under the CSBG establishes the guidelines over monitoring reports. However, the Office does not have sufficient staff to perform monitoring reviews to sub-recipients. Effect of Condition The Office cannot ensure that the delegated funds to the sub-recipients are being used to meet the goals and standards required by the State. Also, the Office is not in compliance with the 42 USC 9914 (a)(1)(2). Recommendation To enhance the effectiveness of current monitoring efforts, it is a requirement to uphold and reinforce the consistency of these activities. Sustaining systematic and regular monitoring practices is essential for ensuring continued compliance with regulations and the efficient management of funds. Questioned Cost None.
Finding 2023-002
Federal Agency U.S. Department of Health and Human Services: Federal Program Title Community Services Block Grant (ALN 93.569): Compliance Requirement Subrecipient Monitoring (M): Type of finding Material Weakness in Internal Control (MW), Instance of Noncompliance (NC): This finding is similar to prior years finding 2022-002, 2021-002 and 2020-005.: Statement of Condition In our audit, we found that the Office, which provides funds to four (4) sub-recipients, failed to perform monitoring for any of them during the fiscal year 2022-2023, as well as in the two (2) previous years.: Criteria 42 USC 9914 (a)(1)(2), establishes that (a) In order to determine whether eligible entities meet the performance goals, administrative standards, financial management requirements, and other requirements of State. The State shall conduct the following reviews of eligible entities:(1) a full onsite review of each such entity at least once during each 3-year period, (2) an onsite review of each newly designated entity immediately after the completion of the first year in which such entity receives funds through the Community Services Block Grant Program (CSBG).: Cause of Condition The Internal Control Monitoring Program for Federal Funds under the CSBG establishes the guidelines over monitoring reports. However, the Office does not have sufficient staff to perform monitoring reviews to sub-recipients. Effect of Condition The Office cannot ensure that the delegated funds to the sub-recipients are being used to meet the goals and standards required by the State. Also, the Office is not in compliance with the 42 USC 9914 (a)(1)(2). Recommendation To enhance the effectiveness of current monitoring efforts, it is a requirement to uphold and reinforce the consistency of these activities. Sustaining systematic and regular monitoring practices is essential for ensuring continued compliance with regulations and the efficient management of funds. Questioned Cost None.