FAC Explorer

Audit 301810

FY End
2023-06-30
Total Expended
$13.42M
Findings
8
Programs
18
Organization: Boys and Girls Clubs of Puerto Rico INC (PR)
Year: 2023 Accepted: 2024-04-01
Auditor: Rsm Puerto Rico

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
391198 2023-002 - - F
391199 2023-002 - - F
391200 2023-003 - - L
391201 2023-003 - - L
967640 2023-002 - - F
967641 2023-002 - - F
967642 2023-003 - - L
967643 2023-003 - - L

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $2.08M - 0
84.287 Twenty-First Century Community Learning Centers $1.50M Yes 1
93.600 Head Start $426,902 Yes 0
17.274 Youthbuild $325,534 - 0
14.218 Community Development Block Grants/entitlement Grants $292,934 Yes 1
10.555 National School Lunch Program $179,272 - 0
84.282 Charter Schools $172,010 - 0
10.536 Cacfp Training Grants $167,589 - 0
93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants $158,141 - 0
94.006 Americorps $142,661 - 0
93.356 Head Start Disaster Recovery $142,395 Yes 0
16.575 Crime Victim Assistance $43,554 - 0
93.859 Biomedical Research and Research Training $29,682 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $23,685 - 0
10.553 School Breakfast Program $21,678 - 0
93.060 Competitive Abstinence Education (cae) $17,624 - 0
16.726 Juvenile Mentoring Program $16,888 - 0
14.862 Indian Community Development Block Grant Program $5,148 - 0

Contacts

Name Title Type
WQUVNYR2VG85 Manuel Joglar Auditee
7874027933 Norma Vazquez Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: Expenditures reported on the Schedule 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 are not allowable or are limited as to reimbursement. De Minimis Rate Used: Both Rate Explanation: HUD Public and Indian Housing program agreement (ALN #14.850) specifically includes certain administrative expenses to be charged as indirect costs, in accordance with CFR 200.414, Indirect (F&A) Costs. For the following programs, BGCPR has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance: A) U.S Department of Justice – Juvenile Mentoring Program – ALN #16.726 – Pass-through from Boys & Girls Clubs of America. B) U.S. Department of Housing and Urban Development – CDBG DR – ALN #14.218 – Pass-through from Puerto Rico Public Housing Administration. C) U.S. Department of Health and Human Services – Head Start Clutser For other federal grants, no election to use the 10% de minimis indirect cost rate has been made. The accompanying schedule of expenditures of federal awards (“the Schedule”) includes the federal grant activity of BGCPR 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). Because the schedule present only a selected portion of the operations of BGCPR, it is not intended to and does not present the financial position, changes in net assets or cash flows of BGCPR. Because the schedule presents only a selected portion of the operations of BGCPR, it is not intended to and does not present the financial position, changes in net assets, or cash flows of BGCPR.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule 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 are not allowable or are limited as to reimbursement. De Minimis Rate Used: Both Rate Explanation: HUD Public and Indian Housing program agreement (ALN #14.850) specifically includes certain administrative expenses to be charged as indirect costs, in accordance with CFR 200.414, Indirect (F&A) Costs. For the following programs, BGCPR has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance: A) U.S Department of Justice – Juvenile Mentoring Program – ALN #16.726 – Pass-through from Boys & Girls Clubs of America. B) U.S. Department of Housing and Urban Development – CDBG DR – ALN #14.218 – Pass-through from Puerto Rico Public Housing Administration. C) U.S. Department of Health and Human Services – Head Start Clutser For other federal grants, no election to use the 10% de minimis indirect cost rate has been made. Expenditures reported on the Schedule 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 are not allowable or are limited as to reimbursement.
Title: Assistance Listing Number Accounting Policies: Expenditures reported on the Schedule 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 are not allowable or are limited as to reimbursement. De Minimis Rate Used: Both Rate Explanation: HUD Public and Indian Housing program agreement (ALN #14.850) specifically includes certain administrative expenses to be charged as indirect costs, in accordance with CFR 200.414, Indirect (F&A) Costs. For the following programs, BGCPR has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance: A) U.S Department of Justice – Juvenile Mentoring Program – ALN #16.726 – Pass-through from Boys & Girls Clubs of America. B) U.S. Department of Housing and Urban Development – CDBG DR – ALN #14.218 – Pass-through from Puerto Rico Public Housing Administration. C) U.S. Department of Health and Human Services – Head Start Clutser For other federal grants, no election to use the 10% de minimis indirect cost rate has been made. The Assistance Listing Numbers (AL) (formerly Catalog of Federal Domestic Assistance (CFDA) numbers) are the publicly available listings of Federal assistance programs. The first two digits identify the federal department or agency that administers the program, and the last three numbers are assigned by numerical sequence.
Title: Indirect cost rate Accounting Policies: Expenditures reported on the Schedule 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 are not allowable or are limited as to reimbursement. De Minimis Rate Used: Both Rate Explanation: HUD Public and Indian Housing program agreement (ALN #14.850) specifically includes certain administrative expenses to be charged as indirect costs, in accordance with CFR 200.414, Indirect (F&A) Costs. For the following programs, BGCPR has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance: A) U.S Department of Justice – Juvenile Mentoring Program – ALN #16.726 – Pass-through from Boys & Girls Clubs of America. B) U.S. Department of Housing and Urban Development – CDBG DR – ALN #14.218 – Pass-through from Puerto Rico Public Housing Administration. C) U.S. Department of Health and Human Services – Head Start Clutser For other federal grants, no election to use the 10% de minimis indirect cost rate has been made. HUD Public and Indian Housing program agreement (ALN #14.850) specifically includes certain administrative expenses to be charged as indirect costs, in accordance with CFR 200.414, Indirect (F&A) Costs. For the following programs, BGCPR has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance: A) U.S Department of Justice – Juvenile Mentoring Program – ALN #16.726 – Pass-through from Boys & Girls Clubs of America. B) U.S. Department of Housing and Urban Development – CDBG DR – ALN #14.218 – Pass-through from Puerto Rico Public Housing Administration. C) U.S. Department of Health and Human Services – Head Start Clutser For other federal grants, no election to use the 10% de minimis indirect cost rate has been made.

Finding Details

Finding 2023-002
Criteria: Finance Policies to Administer CDBG-DR established by the Puerto Rico Department of Housing in its Chapter 15 Section 2, requires that-sub recipients must capitalize property and equipment with a cost of $500 or more. Condition: The capitalization threshold used for property and equipment acquired with CDBG funds is not in compliance with Finance Policies to administer CDBG-DR funds, as established by the Puerto Rico Department of Housing. SECTION III –FEDERAL AWARD FINDINGS AND QUESTIONS COSTS Cause: The capitalization policy followed by BGCPR is to capitalize property and equipment with a cost of $1,000 or more. Effect or potential effect: Property and equipment acquired with CDBG-DR funds is being expensed instead of capitalized. Recommendation: We recommend that management updates its capitalization policy to include this specific requirement for property and equipment acquired with CDBG-DR funds. Views of responsible officials: Management will add a capitalization procedure for this program to its finance manual and make the adjustments in the property land equipment subsidiary. Expected completion date is June 30, 2024.
Finding 2023-002
Criteria: Finance Policies to Administer CDBG-DR established by the Puerto Rico Department of Housing in its Chapter 15 Section 2, requires that-sub recipients must capitalize property and equipment with a cost of $500 or more. Condition: The capitalization threshold used for property and equipment acquired with CDBG funds is not in compliance with Finance Policies to administer CDBG-DR funds, as established by the Puerto Rico Department of Housing. SECTION III –FEDERAL AWARD FINDINGS AND QUESTIONS COSTS Cause: The capitalization policy followed by BGCPR is to capitalize property and equipment with a cost of $1,000 or more. Effect or potential effect: Property and equipment acquired with CDBG-DR funds is being expensed instead of capitalized. Recommendation: We recommend that management updates its capitalization policy to include this specific requirement for property and equipment acquired with CDBG-DR funds. Views of responsible officials: Management will add a capitalization procedure for this program to its finance manual and make the adjustments in the property land equipment subsidiary. Expected completion date is June 30, 2024.
Finding 2023-003
Criteria: Federal award Contracts No. 2022 – AF0282 and No.2022 – AF0284 in the fifth clause establishes the dates that the Expenses Report must be submitted to the Puerto Rico Department of Education. Views of responsible officials: Management agrees with finding and has been discussed with the agency. However, we have been taking several steps to advance processes that can be completed before month end reporting. Procedures like obligating the expenses one week before the current date, processing the payroll earlier and have the payroll reports earlier in the period. These actions allow to gather and complete all program's templates, and send them to the external auditor for review earlier in the period providing them more days to complete the AUP before the report due date. Condition: BGCPR did not submit the required Expenses Report for the last quarter for Contract No. 2022 – AF0282 and for two quarters for Contract No. 2022 – AF0284. Cause: The compilation of the information needed to include in the Expenses Report is not being maintained on a timely basis. Effect or potential effect: Non-compliance with the reporting requirements. Recommendation: BGCPR should establish a calendar for submission of all required reports. Preliminary
Finding 2023-003
Criteria: Federal award Contracts No. 2022 – AF0282 and No.2022 – AF0284 in the fifth clause establishes the dates that the Expenses Report must be submitted to the Puerto Rico Department of Education. Views of responsible officials: Management agrees with finding and has been discussed with the agency. However, we have been taking several steps to advance processes that can be completed before month end reporting. Procedures like obligating the expenses one week before the current date, processing the payroll earlier and have the payroll reports earlier in the period. These actions allow to gather and complete all program's templates, and send them to the external auditor for review earlier in the period providing them more days to complete the AUP before the report due date. Condition: BGCPR did not submit the required Expenses Report for the last quarter for Contract No. 2022 – AF0282 and for two quarters for Contract No. 2022 – AF0284. Cause: The compilation of the information needed to include in the Expenses Report is not being maintained on a timely basis. Effect or potential effect: Non-compliance with the reporting requirements. Recommendation: BGCPR should establish a calendar for submission of all required reports. Preliminary
Finding 2023-002
Criteria: Finance Policies to Administer CDBG-DR established by the Puerto Rico Department of Housing in its Chapter 15 Section 2, requires that-sub recipients must capitalize property and equipment with a cost of $500 or more. Condition: The capitalization threshold used for property and equipment acquired with CDBG funds is not in compliance with Finance Policies to administer CDBG-DR funds, as established by the Puerto Rico Department of Housing. SECTION III –FEDERAL AWARD FINDINGS AND QUESTIONS COSTS Cause: The capitalization policy followed by BGCPR is to capitalize property and equipment with a cost of $1,000 or more. Effect or potential effect: Property and equipment acquired with CDBG-DR funds is being expensed instead of capitalized. Recommendation: We recommend that management updates its capitalization policy to include this specific requirement for property and equipment acquired with CDBG-DR funds. Views of responsible officials: Management will add a capitalization procedure for this program to its finance manual and make the adjustments in the property land equipment subsidiary. Expected completion date is June 30, 2024.
Finding 2023-002
Criteria: Finance Policies to Administer CDBG-DR established by the Puerto Rico Department of Housing in its Chapter 15 Section 2, requires that-sub recipients must capitalize property and equipment with a cost of $500 or more. Condition: The capitalization threshold used for property and equipment acquired with CDBG funds is not in compliance with Finance Policies to administer CDBG-DR funds, as established by the Puerto Rico Department of Housing. SECTION III –FEDERAL AWARD FINDINGS AND QUESTIONS COSTS Cause: The capitalization policy followed by BGCPR is to capitalize property and equipment with a cost of $1,000 or more. Effect or potential effect: Property and equipment acquired with CDBG-DR funds is being expensed instead of capitalized. Recommendation: We recommend that management updates its capitalization policy to include this specific requirement for property and equipment acquired with CDBG-DR funds. Views of responsible officials: Management will add a capitalization procedure for this program to its finance manual and make the adjustments in the property land equipment subsidiary. Expected completion date is June 30, 2024.
Finding 2023-003
Criteria: Federal award Contracts No. 2022 – AF0282 and No.2022 – AF0284 in the fifth clause establishes the dates that the Expenses Report must be submitted to the Puerto Rico Department of Education. Views of responsible officials: Management agrees with finding and has been discussed with the agency. However, we have been taking several steps to advance processes that can be completed before month end reporting. Procedures like obligating the expenses one week before the current date, processing the payroll earlier and have the payroll reports earlier in the period. These actions allow to gather and complete all program's templates, and send them to the external auditor for review earlier in the period providing them more days to complete the AUP before the report due date. Condition: BGCPR did not submit the required Expenses Report for the last quarter for Contract No. 2022 – AF0282 and for two quarters for Contract No. 2022 – AF0284. Cause: The compilation of the information needed to include in the Expenses Report is not being maintained on a timely basis. Effect or potential effect: Non-compliance with the reporting requirements. Recommendation: BGCPR should establish a calendar for submission of all required reports. Preliminary
Finding 2023-003
Criteria: Federal award Contracts No. 2022 – AF0282 and No.2022 – AF0284 in the fifth clause establishes the dates that the Expenses Report must be submitted to the Puerto Rico Department of Education. Views of responsible officials: Management agrees with finding and has been discussed with the agency. However, we have been taking several steps to advance processes that can be completed before month end reporting. Procedures like obligating the expenses one week before the current date, processing the payroll earlier and have the payroll reports earlier in the period. These actions allow to gather and complete all program's templates, and send them to the external auditor for review earlier in the period providing them more days to complete the AUP before the report due date. Condition: BGCPR did not submit the required Expenses Report for the last quarter for Contract No. 2022 – AF0282 and for two quarters for Contract No. 2022 – AF0284. Cause: The compilation of the information needed to include in the Expenses Report is not being maintained on a timely basis. Effect or potential effect: Non-compliance with the reporting requirements. Recommendation: BGCPR should establish a calendar for submission of all required reports. Preliminary