FAC Explorer

Audit 301964

FY End
2023-06-30
Total Expended
$1.67M
Findings
6
Programs
6
Organization: Centro Margarita,inc (PR)
Year: 2023 Accepted: 2024-04-01
Auditor: Velez CPA Group LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
391474 2023-001 Significant Deficiency - L
391475 2023-001 Significant Deficiency - L
391476 2023-002 Significant Deficiency - L
967916 2023-001 Significant Deficiency - L
967917 2023-001 Significant Deficiency - L
967918 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.575 Child Care and Development Block Grant $323,182 Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $298,481 Yes 1
10.558 Child and Adult Care Food Program $79,590 - 0
93.590 Community-Based Child Abuse Prevention Grants $68,626 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $31,973 - 0
93.600 Head Start $25,629 - 0

Contacts

Name Title Type
M1VMP9AD31W3 Brenda Cruz Auditee
7876123972 Jose A Velez Diaz Auditor
No contacts on file

Notes to SEFA

Title: 1)     Basis of presentation Accounting Policies: Please refer to form tab De Minimis Rate Used: N Rate Explanation: The entity is not requesting indirecto costs The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal awards activities of Centro Margarita, Inc. (the Corporation) 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 the 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 presents only a selected portion of the operations of Centro Margarita, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Centro Margarita, Inc
Title: 2) Summary of significant accounting policies Accounting Policies: Please refer to form tab De Minimis Rate Used: N Rate Explanation: The entity is not requesting indirecto costs Expenditures reported in 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 allowed or are limited as to reimbursement. Negative amounts shown in the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Additional policies are the following: (a) The financial transactions are recorded by the Organization in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. (b) Expenditures are recognized in the accounting period in which the liability is incurred, if measurable, or when paid, whichever occurs first.
Title: 3) Assistance listing number Accounting Policies: Please refer to form tab De Minimis Rate Used: N Rate Explanation: The entity is not requesting indirecto costs The assistance listing numbers included in the Schedule are determined based on the program’s name, review of grant contract information and the Office of Management and Budget. The assistance listing number is a program identification number, whose first two digits identify the federal department or agency that administers the program, and the last three numbers are assigned by numerical sequence.
Title: 4) Major federal programs Accounting Policies: Please refer to form tab De Minimis Rate Used: N Rate Explanation: The entity is not requesting indirecto costs Major programs are identified in the Summary of Audits Results Section of the Schedules of Findings and Questioned Cost.
Title: 5) Distinction between Type A and Type B Programs Accounting Policies: Please refer to form tab De Minimis Rate Used: N Rate Explanation: The entity is not requesting indirecto costs The dollar threshold for Type A and Type B programs amounted to $750,000.
Title: 6) In-kind expenses and matching costs Accounting Policies: Please refer to form tab De Minimis Rate Used: N Rate Explanation: The entity is not requesting indirecto costs In-kind and matching expenses are non-federal share of certain program costs, therefore are not included in the accompanying Schedule.
Title: 7) Indirect costs Accounting Policies: Please refer to form tab De Minimis Rate Used: N Rate Explanation: The entity is not requesting indirecto costs The Organization does not have a federally negotiated indirect cost rate applicable to the programs and therefore there is no election to the 10 percent de minims cost rate as defined in 2 CFR 200.414.

Finding Details

Finding 2023-001
Condition: During our audit procedures, we noted that the following financial reports were not submitted on time. Criteria: As stated in the award terms 2.CFR 200.328, financial reports are due on a quarterly basis. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within Centro Margarita, Inc. The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting its financial stability and mission delivery. Recommendation: Centro Margarita, Inc. should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Finding 2023-001
Condition: During our audit procedures, we noted that the following financial reports were not submitted on time. Criteria: As stated in the award terms 2.CFR 200.328, financial reports are due on a quarterly basis. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within Centro Margarita, Inc. The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting its financial stability and mission delivery. Recommendation: Centro Margarita, Inc. should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Finding 2023-002
Condition: During our audit procedures, we noted that the following financial reports were not submitted on time and/or with incorrect balances of cumulative expenses. Criteria: As stated in the award terms 2.CFR 200.328, financial reports are due on a quarterly basis. Cause: Staff members responsible for compiling and submitting financial reports may lack a comprehensive understanding of the specific reporting requirements stipulated by the Federal awarding agency. Without clear guidance or training on reporting deadlines, formatting, and content expectations, they may confront problems meeting compliance obligations in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting its financial stability and mission delivery. Recommendation: Centro Margarita, Inc. should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This include defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Finding 2023-001
Condition: During our audit procedures, we noted that the following financial reports were not submitted on time. Criteria: As stated in the award terms 2.CFR 200.328, financial reports are due on a quarterly basis. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within Centro Margarita, Inc. The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting its financial stability and mission delivery. Recommendation: Centro Margarita, Inc. should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Finding 2023-001
Condition: During our audit procedures, we noted that the following financial reports were not submitted on time. Criteria: As stated in the award terms 2.CFR 200.328, financial reports are due on a quarterly basis. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within Centro Margarita, Inc. The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting its financial stability and mission delivery. Recommendation: Centro Margarita, Inc. should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Finding 2023-002
Condition: During our audit procedures, we noted that the following financial reports were not submitted on time and/or with incorrect balances of cumulative expenses. Criteria: As stated in the award terms 2.CFR 200.328, financial reports are due on a quarterly basis. Cause: Staff members responsible for compiling and submitting financial reports may lack a comprehensive understanding of the specific reporting requirements stipulated by the Federal awarding agency. Without clear guidance or training on reporting deadlines, formatting, and content expectations, they may confront problems meeting compliance obligations in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting its financial stability and mission delivery. Recommendation: Centro Margarita, Inc. should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This include defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.