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Audit 296637

FY End
2023-06-30
Total Expended
$6.82M
Findings
2
Programs
1
Organization: Senate of the Commonwealth of Puerto Rico (PR)
Year: 2023 Accepted: 2024-03-22
Auditor: Roman Toro & CO Contadores Publicos Autorizados C S P

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
383590 2023-001 Significant Deficiency - L
960032 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $6.82M Yes 1

Contacts

Name Title Type
PBREPUNQEHN7 Katherine Walker Auditee
7877242030 Janice Roman Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: A. 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. B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. C. Pass-through entity identifying numbers are presented where available and applicable. De Minimis Rate Used: N Rate Explanation: D. The Senate has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the Federal grant activities of the Senate of the Commonwealth of Puerto Rico (Senate) 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 Part 200, (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Senate, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Senate. The Senate reporting entity is defined in Note 1 to the basic financial statements. All federal financial awards received directly from Federal agency as well as Federal financial awards passed through other government agencies, if any, are included on the Schedule.
Title: SCHEDULE NOT IN AGREEMENT WITH OTHER FEDERAL AWARD REPORTING Accounting Policies: A. 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. B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. C. Pass-through entity identifying numbers are presented where available and applicable. De Minimis Rate Used: N Rate Explanation: D. The Senate has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The information included in the Schedule may not fully agree with other Federal award reports submitted directly to Federal granting agencies.
Title: ASSISTANCE LISTING NUMBER Accounting Policies: A. 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. B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. C. Pass-through entity identifying numbers are presented where available and applicable. De Minimis Rate Used: N Rate Explanation: D. The Senate has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Assistance Listing Number, 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.
Title: 5. RELATIONSHIP TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – GOVERNMENTAL FUND Accounting Policies: A. 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. B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. C. Pass-through entity identifying numbers are presented where available and applicable. De Minimis Rate Used: N Rate Explanation: D. The Senate has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures of federal awards are reported in the Senate’s Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds as follows: ARPA Fund column.

Finding Details

Finding 2023-001
Condition: The audit, data collection form, and reporting package, as defined and required in 2 CRF 200.512 for fiscal year ended June 30, 2022, was not submitted timely. Context: Despite the Senate’s best efforts to provide, on a timely basis, the information needed to complete the audit, data collection form and reporting package according to 2 CRF 200.512, the audit, data collection form and reporting package for the fiscal year ended June 30, 2022 was submitted to the Federal Audit Clearinghouse on June 20, 2023. Views of Responsible officials and corrective actions: For the fiscal year ended June 30, 2022, the Senate of Puerto Rico was able to complete and issue the Single Audit report. The delay in the issuance of the 2022 Single Audit was mostly due to classification of expenditures in our accounting system that required some adjustments and later submission of the Employees Retirement System information. For the Single Audit of June 30, 2023, we contracted the services for the Single Audit on time and a coordination was made with the accounting staff for the submission of the information required by the auditors. We plan to complete the auditing procedures and expect to comply with the submission of or before March 31, 2024. Criteria: As per 2 CRF 200.512, the audit, data collection form, and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause: The Senate was not able to provide on a timely basis, the information needed to complete the audit for the year ended on June 30, 2022. This situation prevented the submission of the data collection form and reporting package by the due date of March 31, 2023. Effect: Because of the situation described above, the Senate did not comply with the report submission requirement, since the audit was not submitted within nine months after their fiscal period end date. Auditor’s recommendation: Management should continue to fulfill their auditee responsibilities as stated in 2 CRF 200.508 which among other things, require management to prepare appropriate financial statements and provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit and to ensure that subsequent financial reporting packages are submitted timely.
Finding 2023-001
Condition: The audit, data collection form, and reporting package, as defined and required in 2 CRF 200.512 for fiscal year ended June 30, 2022, was not submitted timely. Context: Despite the Senate’s best efforts to provide, on a timely basis, the information needed to complete the audit, data collection form and reporting package according to 2 CRF 200.512, the audit, data collection form and reporting package for the fiscal year ended June 30, 2022 was submitted to the Federal Audit Clearinghouse on June 20, 2023. Views of Responsible officials and corrective actions: For the fiscal year ended June 30, 2022, the Senate of Puerto Rico was able to complete and issue the Single Audit report. The delay in the issuance of the 2022 Single Audit was mostly due to classification of expenditures in our accounting system that required some adjustments and later submission of the Employees Retirement System information. For the Single Audit of June 30, 2023, we contracted the services for the Single Audit on time and a coordination was made with the accounting staff for the submission of the information required by the auditors. We plan to complete the auditing procedures and expect to comply with the submission of or before March 31, 2024. Criteria: As per 2 CRF 200.512, the audit, data collection form, and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause: The Senate was not able to provide on a timely basis, the information needed to complete the audit for the year ended on June 30, 2022. This situation prevented the submission of the data collection form and reporting package by the due date of March 31, 2023. Effect: Because of the situation described above, the Senate did not comply with the report submission requirement, since the audit was not submitted within nine months after their fiscal period end date. Auditor’s recommendation: Management should continue to fulfill their auditee responsibilities as stated in 2 CRF 200.508 which among other things, require management to prepare appropriate financial statements and provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit and to ensure that subsequent financial reporting packages are submitted timely.