FAC Explorer

Audit 298442

FY End
2023-06-30
Total Expended
$23.28M
Findings
4
Programs
12
Organization: Municipality of Guayama (PR)
Year: 2023 Accepted: 2024-03-27
Auditor: Ortiz Rivera Rivera LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
386081 2023-002 Significant Deficiency - L
386082 2023-002 Significant Deficiency - L
962523 2023-002 Significant Deficiency - L
962524 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.600 Head Start $16.54M Yes 1
93.356 Head Start Disaster Recovery $2.63M Yes 1
14.871 Section 8 Housing Choice Vouchers $1.25M Yes 0
10.558 Child and Adult Care Food Program $710,555 - 0
14.218 Community Development Block Grants/entitlement Grants $367,972 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $203,717 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $174,536 Yes 0
14.267 Continuum of Care Program $105,693 - 0
21.019 Coronavirus Relief Fund $79,641 - 0
20.600 State and Community Highway Safety $63,104 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $49,795 - 0
20.507 Federal Transit_formula Grants $32,602 - 0

Contacts

Name Title Type
E7RKHHJHAJ14 Vilmarie Fuentes Auditee
7878640600 CPA Marco A. Rivera Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: Refer tp Form De Minimis Rate Used: N Rate Explanation: The Municipality elected not use the 10% de minimis 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 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 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: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Refer tp Form De Minimis Rate Used: N Rate Explanation: The Municipality elected not use the 10% de minimis cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2023 Expenditures reported on the Schedule are reported on the modified-accrual basis of accounting, except for Section 8 Housing Choice Voucher Program (HCV). Expenditures are recognized when the related liability is incurred following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for HCV Program are reported on a statutory basis as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy for the PHA’s fiscal period. Public assistance grants (FEMA) expenditures are recognized in the period when: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. 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 Municipality, known as “pass–through awards”, should be treated by the Municipality as though they were received directly from the federal government. 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: NOTE 3 – INDIRECT COSTS Accounting Policies: Refer tp Form De Minimis Rate Used: N Rate Explanation: The Municipality elected not use the 10% de minimis cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2023 The Municipality elected not use the 10% de minimis cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2023.
Title: NOTE 4 – RELATIONSHIP TO FEDERAL FINANCIAL REPORTS Accounting Policies: Refer tp Form De Minimis Rate Used: N Rate Explanation: The Municipality elected not use the 10% de minimis cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2023 Amounts reported in the accompanying Schedule are included in the Head Start, Disaster Grants, ARPA and in the Other Governmental Funds in the Municipality’s fund financial statements. The reconciliation between the expenditures in the fund financial statements and expenditures in the Schedule of Expenditures of Federal Awards is as follows: Description Head Start Fund Disaster Grants Fund ARPA Fund Other Governmental Funds Total Total federal expenditures per Schedule of Expenditures of Federal Awards $19,166,722 $ 203,717 $1,247,412 $ 2,661,394 $23,279,245 Additional amount recorded as expenditures under modified accrual basis for Section 8 HCV Program - - - 39,420 39,420 Non-federal awards expenditures - - - 141,338 141,338 Total expenditures, fund statements $19,166,722 $ 203,717 $1,247,412 $ 2,842,152 $23,460,003
Title: NOTE 5 – CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (ALN 21.027) Accounting Policies: Refer tp Form De Minimis Rate Used: N Rate Explanation: The Municipality elected not use the 10% de minimis cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2023 On March 11, 2021, was signed into law the American Rescue Plan Act (ARPA) of 2021, the latest COVID-19 stimulus package. Within ARPA, the Coronavirus State and Local Fiscal Recovery Fund provides $350 billion for states, municipalities, counties, tribes, and territories, including $130.2 billion for local governments split evenly between municipalities and counties. Accordingly, the Municipality received a grant under Counties and Non-Entitlements categories $11,862,590 to respond to the COVID-19 public health emergency and its economic impacts. The Municipality will incur ARPA grant expenditures in the following fiscal years.

Finding Details

Finding 2023-002
Finding: 2023-002 Federal Agency: U.S. Department of Health and Human Services Pass-through Agency: N/A Federal Program Title: Head Start Cluster CFDA Number: 93.356; 93.600 Compliance Requirement: Reporting Type of Finding: Significand Deficiencies and Non-Compliance Responsible Official: Prior year finding: Vilmarie Fuentes – Finance Director N/A Criteria or Specific Requirement ACF grantees are required to use the SF-425 Federal Financial Report for expenditure reporting. SF- 425 reports are due as frequently as is required in the terms and conditions of award using due dates from reports to the HHS Payment Management System (PMS). Condition Our review of the quarterly financial reports submitted to the Department of Health and Urban Development disclosed that reports were submitted after the required submission date, as detailed below: Report Name: Period Ending Date: Due Date Date Submitted Past Due Days SF-425 06/30/2023 07/30/2023 01/24/2024 183 Effect The Municipality did not comply with the submission date required for the Financial Reports to the Department of Health and Human Services. Cause The Municipality was facing a transition of personnel in the Head Start Program management, and the new appointed personnel took time to get the required certification credentials.COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF GUAYAMA Summary of Findings and Questioned Costs (Continued) For the Fiscal Year Ended June 30, 2023 - 98 - Recommendation We recommend the Municipality the due diligence of the supervisory personnel to ensure that reports are submitted on time. Also a report filing deadline procedures may be established by the Finance Director or Federal Program Director, to ascertain that the office keep tracks of the due dates as required. Questioned Costs None. Views of Responsible Officials and Planned Corrective Action See the Municipality’s corrective action plan. Responsible Official Director of Federal Program and/or Finance Director.
Finding 2023-002
Finding: 2023-002 Federal Agency: U.S. Department of Health and Human Services Pass-through Agency: N/A Federal Program Title: Head Start Cluster CFDA Number: 93.356; 93.600 Compliance Requirement: Reporting Type of Finding: Significand Deficiencies and Non-Compliance Responsible Official: Prior year finding: Vilmarie Fuentes – Finance Director N/A Criteria or Specific Requirement ACF grantees are required to use the SF-425 Federal Financial Report for expenditure reporting. SF- 425 reports are due as frequently as is required in the terms and conditions of award using due dates from reports to the HHS Payment Management System (PMS). Condition Our review of the quarterly financial reports submitted to the Department of Health and Urban Development disclosed that reports were submitted after the required submission date, as detailed below: Report Name: Period Ending Date: Due Date Date Submitted Past Due Days SF-425 06/30/2023 07/30/2023 01/24/2024 183 Effect The Municipality did not comply with the submission date required for the Financial Reports to the Department of Health and Human Services. Cause The Municipality was facing a transition of personnel in the Head Start Program management, and the new appointed personnel took time to get the required certification credentials.COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF GUAYAMA Summary of Findings and Questioned Costs (Continued) For the Fiscal Year Ended June 30, 2023 - 98 - Recommendation We recommend the Municipality the due diligence of the supervisory personnel to ensure that reports are submitted on time. Also a report filing deadline procedures may be established by the Finance Director or Federal Program Director, to ascertain that the office keep tracks of the due dates as required. Questioned Costs None. Views of Responsible Officials and Planned Corrective Action See the Municipality’s corrective action plan. Responsible Official Director of Federal Program and/or Finance Director.
Finding 2023-002
Finding: 2023-002 Federal Agency: U.S. Department of Health and Human Services Pass-through Agency: N/A Federal Program Title: Head Start Cluster CFDA Number: 93.356; 93.600 Compliance Requirement: Reporting Type of Finding: Significand Deficiencies and Non-Compliance Responsible Official: Prior year finding: Vilmarie Fuentes – Finance Director N/A Criteria or Specific Requirement ACF grantees are required to use the SF-425 Federal Financial Report for expenditure reporting. SF- 425 reports are due as frequently as is required in the terms and conditions of award using due dates from reports to the HHS Payment Management System (PMS). Condition Our review of the quarterly financial reports submitted to the Department of Health and Urban Development disclosed that reports were submitted after the required submission date, as detailed below: Report Name: Period Ending Date: Due Date Date Submitted Past Due Days SF-425 06/30/2023 07/30/2023 01/24/2024 183 Effect The Municipality did not comply with the submission date required for the Financial Reports to the Department of Health and Human Services. Cause The Municipality was facing a transition of personnel in the Head Start Program management, and the new appointed personnel took time to get the required certification credentials.COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF GUAYAMA Summary of Findings and Questioned Costs (Continued) For the Fiscal Year Ended June 30, 2023 - 98 - Recommendation We recommend the Municipality the due diligence of the supervisory personnel to ensure that reports are submitted on time. Also a report filing deadline procedures may be established by the Finance Director or Federal Program Director, to ascertain that the office keep tracks of the due dates as required. Questioned Costs None. Views of Responsible Officials and Planned Corrective Action See the Municipality’s corrective action plan. Responsible Official Director of Federal Program and/or Finance Director.
Finding 2023-002
Finding: 2023-002 Federal Agency: U.S. Department of Health and Human Services Pass-through Agency: N/A Federal Program Title: Head Start Cluster CFDA Number: 93.356; 93.600 Compliance Requirement: Reporting Type of Finding: Significand Deficiencies and Non-Compliance Responsible Official: Prior year finding: Vilmarie Fuentes – Finance Director N/A Criteria or Specific Requirement ACF grantees are required to use the SF-425 Federal Financial Report for expenditure reporting. SF- 425 reports are due as frequently as is required in the terms and conditions of award using due dates from reports to the HHS Payment Management System (PMS). Condition Our review of the quarterly financial reports submitted to the Department of Health and Urban Development disclosed that reports were submitted after the required submission date, as detailed below: Report Name: Period Ending Date: Due Date Date Submitted Past Due Days SF-425 06/30/2023 07/30/2023 01/24/2024 183 Effect The Municipality did not comply with the submission date required for the Financial Reports to the Department of Health and Human Services. Cause The Municipality was facing a transition of personnel in the Head Start Program management, and the new appointed personnel took time to get the required certification credentials.COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF GUAYAMA Summary of Findings and Questioned Costs (Continued) For the Fiscal Year Ended June 30, 2023 - 98 - Recommendation We recommend the Municipality the due diligence of the supervisory personnel to ensure that reports are submitted on time. Also a report filing deadline procedures may be established by the Finance Director or Federal Program Director, to ascertain that the office keep tracks of the due dates as required. Questioned Costs None. Views of Responsible Officials and Planned Corrective Action See the Municipality’s corrective action plan. Responsible Official Director of Federal Program and/or Finance Director.