Audit 304216

FY End
2023-06-30
Total Expended
$8.55M
Findings
2
Programs
2
Year: 2023 Accepted: 2024-04-23
Auditor: Rsm Puerto Rico

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
394237 2023-001 - Yes L
970679 2023-001 - Yes L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $8.19M Yes 1
21.019 Coronavirus Relief Fund $368,697 - 0

Contacts

Name Title Type
MR3WT17G44D5 Jessica Ortiz Auditee
7877222525 Norma Vazquez Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures included on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized at the time of disbursement, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: N/A The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activities of the Puerto Rico Fiscal Agency and Financial Advisory Authority (the Authority), a Component Unit of the Commonwealth of Puerto Rico (the Commonwealth), 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 (CFR) 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 the Authority, it is not intended to and does not present the financial position and changes in financial position of the Authority. Therefore, some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. All federal agencies as well as federal awards passed through from other local government agencies are included in the Schedule.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures included on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized at the time of disbursement, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: N/A Expenditures included on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized at the time of disbursement, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
Title: Assistance Listing Number Accounting Policies: Expenditures included on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized at the time of disbursement, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: N/A The Assistance Listing Number (ALN), formerly known as Catalog of Federal Domestic Assistance (CFDA) Numbers is a program identification number. 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: Program Costs Accounting Policies: Expenditures included on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized at the time of disbursement, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: N/A The amounts shown as current year federal expenses represent only the federal grant portion of the program costs.
Title: Reconciliation to Financial Statements Accounting Policies: Expenditures included on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized at the time of disbursement, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: N/A The reconciliation of expenses in the governmental funds’ financial statements to the schedule of expenditures of federal awards is as follows.

Finding Details

Category: Compliance Compliance Requirement: Reporting Criteria: 2 CFR §200.512 (a) (1) establishes that the audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: The Authority did not submit the required data collection form and reporting package for the year ended June 30, 2023, within the required period. Cause: Delay in the approval process of the basic financial statements and the Uniform Guidance Report. Effects: Noncompliance with the requirements for reporting. Questioned Costs: None. Identification as a repeat finding: For fiscal year 2022, the finding 2022-01 was identified and it addressed the fact that the data collection form and reporting package was not submitted within the required period. Recommendation: We recommend management to consider in its time schedule that appropriate time is assigned to the approval process. Management’s response: Finding accepted. Management has in place all the internal controls needed to issue the Uniform Guidance report for the fiscal year ending on June 30, 2024, and subsequent years on time. Currently, management is working with the 2024 fiscal year financial statement audit and uniform guidance audit plan which take into consideration to issue those reports on or before March 31, 2025.
Category: Compliance Compliance Requirement: Reporting Criteria: 2 CFR §200.512 (a) (1) establishes that the audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: The Authority did not submit the required data collection form and reporting package for the year ended June 30, 2023, within the required period. Cause: Delay in the approval process of the basic financial statements and the Uniform Guidance Report. Effects: Noncompliance with the requirements for reporting. Questioned Costs: None. Identification as a repeat finding: For fiscal year 2022, the finding 2022-01 was identified and it addressed the fact that the data collection form and reporting package was not submitted within the required period. Recommendation: We recommend management to consider in its time schedule that appropriate time is assigned to the approval process. Management’s response: Finding accepted. Management has in place all the internal controls needed to issue the Uniform Guidance report for the fiscal year ending on June 30, 2024, and subsequent years on time. Currently, management is working with the 2024 fiscal year financial statement audit and uniform guidance audit plan which take into consideration to issue those reports on or before March 31, 2025.