FAC Explorer

Audit 306497

FY End
2022-06-30
Total Expended
$6.38M
Findings
2
Programs
8
Organization: Municipality of Ceiba (PR)
Year: 2022 Accepted: 2024-05-17
Auditor: Aguilo Lang CPA Psc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
397077 2022-005 Material Weakness Yes L
973519 2022-005 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
21.019 Coronavirus Relief Fund $1.80M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.63M Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.36M Yes 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.12M Yes 0
14.871 Section 8 Housing Choice Vouchers $255,375 - 1
10.558 Child and Adult Care Food Program $147,624 - 0
16.575 Crime Victim Assistance $66,104 - 0
97.030 Community Disaster Loans $0 - 0

Contacts

Name Title Type
SNLXHRQGLCB6 Margarita Melendez Martinez Auditee
7878852180 Javier M Aguilo Lang Auditor
No contacts on file

Notes to SEFA

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 allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Municipality of Ceiba has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2022-005
On our review of the Financial Assessment Sub-system (FASS-PH), the Municipality submitted the GAAP- based audited financial information electronically to HUD for fiscal years 2020 and 2021 after required submittion date. Fiscal Due Date Past Due Year Date Submitted Days 2021 September 30, 2022 February 23, 2024 512 days 2020 September 30, 2022 February 22, 2024 511 days CRITERIA: According to 24 CFR 902.33 “Financial Reporting Requirements”, the PHA must submit an audited Financial Data Schedule no later than 9 months after the PHA’s fiscal year ends. PHAs are required to submit their financial information through the FASS-PH system. CAUSE AND EFFECT: This condition occurred because the Project Administrator has not adopted adequate internal controls and procedures designed to ensure the timely submission of program reports and the lack of adequate training and supervision of the municipal employees in charge of the preparation of the aforementioned reports. This condition, if not corrected, may increase the risk of avoidable instances of material non-compliances with the laws and regulations applicable to the Program.RECOMMENDATION: The Project Administrator should improve existing procedures to ensure the timely submission of the financial reports in order to comply with Federal regulation. Also, the Project Administrator should consider implementing a reporting calendar to maintain all personnel aware of the reporting deadlines of each federal financial report. This will provide an additional tool to help the Municipality in complying with the federal regulation.
Finding 2022-005
On our review of the Financial Assessment Sub-system (FASS-PH), the Municipality submitted the GAAP- based audited financial information electronically to HUD for fiscal years 2020 and 2021 after required submittion date. Fiscal Due Date Past Due Year Date Submitted Days 2021 September 30, 2022 February 23, 2024 512 days 2020 September 30, 2022 February 22, 2024 511 days CRITERIA: According to 24 CFR 902.33 “Financial Reporting Requirements”, the PHA must submit an audited Financial Data Schedule no later than 9 months after the PHA’s fiscal year ends. PHAs are required to submit their financial information through the FASS-PH system. CAUSE AND EFFECT: This condition occurred because the Project Administrator has not adopted adequate internal controls and procedures designed to ensure the timely submission of program reports and the lack of adequate training and supervision of the municipal employees in charge of the preparation of the aforementioned reports. This condition, if not corrected, may increase the risk of avoidable instances of material non-compliances with the laws and regulations applicable to the Program.RECOMMENDATION: The Project Administrator should improve existing procedures to ensure the timely submission of the financial reports in order to comply with Federal regulation. Also, the Project Administrator should consider implementing a reporting calendar to maintain all personnel aware of the reporting deadlines of each federal financial report. This will provide an additional tool to help the Municipality in complying with the federal regulation.