Audit 308290

FY End
2022-06-30
Total Expended
$38.50M
Findings
26
Programs
5
Organization: Puerto Rico Ports Authority (PR)
Year: 2022 Accepted: 2024-06-06
Auditor: Galindez LLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
400146 2022-003 Significant Deficiency Yes F
400147 2022-004 Significant Deficiency Yes L
400148 2022-005 Significant Deficiency Yes L
400149 2022-004 Significant Deficiency Yes L
400150 2022-004 Significant Deficiency Yes L
400151 2022-006 Significant Deficiency - L
400152 2022-007 Significant Deficiency - M
400153 2022-008 Significant Deficiency - L
400154 2022-004 Significant Deficiency Yes L
400155 2022-006 Significant Deficiency - L
400156 2022-007 Significant Deficiency - M
400157 2022-008 Significant Deficiency - L
400158 2022-004 Significant Deficiency Yes L
976588 2022-003 Significant Deficiency Yes F
976589 2022-004 Significant Deficiency Yes L
976590 2022-005 Significant Deficiency Yes L
976591 2022-004 Significant Deficiency Yes L
976592 2022-004 Significant Deficiency Yes L
976593 2022-006 Significant Deficiency - L
976594 2022-007 Significant Deficiency - M
976595 2022-008 Significant Deficiency - L
976596 2022-004 Significant Deficiency Yes L
976597 2022-006 Significant Deficiency - L
976598 2022-007 Significant Deficiency - M
976599 2022-008 Significant Deficiency - L
976600 2022-004 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $20.14M Yes 1
20.500 Federal Transit_capital Investment Grants $3.70M Yes 4
20.507 Federal Transit_formula Grants $868,109 Yes 4
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $367,865 Yes 0
20.106 Airport Improvement Program $146,389 Yes 1

Contacts

Name Title Type
XJULBJJEK958 Luis R Torres-Meléndez Auditee
7877298715 Henry Flores Auditor
No contacts on file

Notes to SEFA

Title: Note #1 - Basis of presentation Accounting Policies: 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). De Minimis Rate Used: N Rate Explanation: The Authority does not use the 10-percent de minimis indirect cost rate, as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Puerto Rico Ports Authority (the Authority) under programs of the federal government for the year ended June 30, 2021. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the Authority’s financial statements. 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, changes in net assets, or cash flows of the Authority. Funds received from federal programs, as detailed in the Schedule, are included as Federal Financial Assistance in the statements of income for the year ended on June 30, 2021.
Title: Note #2 - Summary of significant accounting policies Accounting Policies: 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). De Minimis Rate Used: N Rate Explanation: The Authority does not use the 10-percent de minimis indirect cost rate, as allowed under the Uniform Guidance. a. The Schedule is prepared from the Authority’s accounting records. b. The financial transactions are recorded by the Authority in accordance with the terms and conditions of the grants, which are consistent with the accounting principles generally accepted in the United States of America. c. Expenditures are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. d. The Authority does not use the 10-percent de minimis indirect cost rate, as allowed under the Uniform Guidance.
Title: Note #3 - Assistance listing number Accounting Policies: 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). De Minimis Rate Used: N Rate Explanation: The Authority does not use the 10-percent de minimis indirect cost rate, as allowed under the Uniform Guidance. The Assistance Listing Numbers (ALN) included in this Schedule are determined based on the program name, review of grant contract information and public descriptions of federal listings published by the U.S. Government on sam.gov.
Title: Note #4 - Program costs Accounting Policies: 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). De Minimis Rate Used: N Rate Explanation: The Authority does not use the 10-percent de minimis indirect cost rate, as allowed under the Uniform Guidance. The amounts shown as federal expenditures represent only the federal grant portion of the program costs.
Title: Note #5 - US Department of Homeland Security – FEMA Public Assistance Program Accounting Policies: 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). De Minimis Rate Used: N Rate Explanation: The Authority does not use the 10-percent de minimis indirect cost rate, as allowed under the Uniform Guidance. As related to the US Department of Homeland Security – FEMA (a) Hazzard Mitigation Grant Program and (b) Public Assistance Program (the Programs), the Central Office for Recovery, Reconstruction and Resiliency of the Commonwealth of Puerto Rico (the COR3) acts as grant administrator; and the Authority as a subgrantee for both Programs. During the year ended June 30, 2021, the Programs’ federal expenditures included in the Schedule, were approximately $1,402,000 and 255,000, respectively.

Finding Details

Physical inventory observation over property has not been performed Condition: While obtaining our understanding of the policies and procedures in place at the Authority’s office in relation to the management of property and equipment, management represented to us that the required physical inventory has been not performed by the Authority’s Property Division during the last two years as required.
Late filing data collection form and reporting package Condition: The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2023 (9 months after the end of fiscal year).
Quarterly Performance Reports and Form SF‐425 & Late filing of reports required by FAA regulations Condition: During our audit procedures we identified the following instances: a. We identified one (1) instance in which the annual form SF‐425 for Grant 3‐72‐0008‐019‐2021 was due December 31, 2022, but was submitted on March 30, 2023. b. In four (4) instances, Forms FAA 5100‐126 and FAA 5100‐127 which applies for seven (7) of the nine (9) airports, and had a due date of October 31, 2022, were filed on February 9, 2023.
Late filing data collection form and reporting package Condition: The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2023 (9 months after the end of fiscal year).
Late filing data collection form and reporting package Condition: The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2023 (9 months after the end of fiscal year).
Late filing of Milestone Progress Reports and Federal Financial Reports Condition: During our audit procedures, we identified various FFR’s and MPR’s under all grants active during fiscal year 2022 that were not submitted on the required due date as follows: * FFR under grant PR‐05‐0001 due 10/30/2021 was submitted on 12/20/2021. * FFR under grant PR‐90‐X296 due 10/30/2021 was submitted on 12/6/2021. * FFR under grant PR‐05‐0035 due 10/30/2021 was submitted on 12/20/2021. * MPR under grant PR‐05‐0001 due 10/30/2021 was submitted on 12/16/2021. * MPR under grant PR‐90‐X296 due 10/30/2021 was submitted on 12/7/2021. * MPR under grant PR‐05‐0035 due 10/30/2021 was submitted on 12/16/2021. * MPR under grant PR‐05‐0035 due 1/30/2022 has no submission date and we could not validate compliance with timely reporting.
Lack of proper subrecipient monitoring documentation over the procurement process and activities performed by subrecipient. Condition: The Authority lacked appropriate monitoring procedures and documentation over funds passed to the Puerto Rico Maritime Transport Authority under grants PR‐05‐0001, PR ‐05‐0035 and PR‐90‐X296. The Authority does not request results of previous audits including whether or not the subrecipient receives single audit in accordance with 2 CFR Part 200, Subpart F. In addition, the Memorandum of Understanding provided between the Authority and PRMTA ended in fiscal year June 30, 2020, and no extension was provided during the audit.
Lack of completeness of the information included in reports submitted through The Transit Award Management System (TrAMS) Condition: During our examination of our reports sample, we detected the final report for fiscal year June 30, 2022, due to be submitted through TrAMS on July 30, 2022, for grant PR‐05‐0035 did not include the total drawdowns that occurred during the fiscal year.
Late filing data collection form and reporting package Condition: The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2023 (9 months after the end of fiscal year).
Late filing of Milestone Progress Reports and Federal Financial Reports Condition: During our audit procedures, we identified various FFR’s and MPR’s under all grants active during fiscal year 2022 that were not submitted on the required due date as follows: * FFR under grant PR‐05‐0001 due 10/30/2021 was submitted on 12/20/2021. * FFR under grant PR‐90‐X296 due 10/30/2021 was submitted on 12/6/2021. * FFR under grant PR‐05‐0035 due 10/30/2021 was submitted on 12/20/2021. * MPR under grant PR‐05‐0001 due 10/30/2021 was submitted on 12/16/2021. * MPR under grant PR‐90‐X296 due 10/30/2021 was submitted on 12/7/2021. * MPR under grant PR‐05‐0035 due 10/30/2021 was submitted on 12/16/2021. * MPR under grant PR‐05‐0035 due 1/30/2022 has no submission date and we could not validate compliance with timely reporting.
Lack of proper subrecipient monitoring documentation over the procurement process and activities performed by subrecipient. Condition: The Authority lacked appropriate monitoring procedures and documentation over funds passed to the Puerto Rico Maritime Transport Authority under grants PR‐05‐0001, PR ‐05‐0035 and PR‐90‐X296. The Authority does not request results of previous audits including whether or not the subrecipient receives single audit in accordance with 2 CFR Part 200, Subpart F. In addition, the Memorandum of Understanding provided between the Authority and PRMTA ended in fiscal year June 30, 2020, and no extension was provided during the audit.
Lack of completeness of the information included in reports submitted through The Transit Award Management System (TrAMS) Condition: During our examination of our reports sample, we detected the final report for fiscal year June 30, 2022, due to be submitted through TrAMS on July 30, 2022, for grant PR‐05‐0035 did not include the total drawdowns that occurred during the fiscal year.
Late filing data collection form and reporting package Condition: The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2023 (9 months after the end of fiscal year).
Physical inventory observation over property has not been performed Condition: While obtaining our understanding of the policies and procedures in place at the Authority’s office in relation to the management of property and equipment, management represented to us that the required physical inventory has been not performed by the Authority’s Property Division during the last two years as required.
Late filing data collection form and reporting package Condition: The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2023 (9 months after the end of fiscal year).
Quarterly Performance Reports and Form SF‐425 & Late filing of reports required by FAA regulations Condition: During our audit procedures we identified the following instances: a. We identified one (1) instance in which the annual form SF‐425 for Grant 3‐72‐0008‐019‐2021 was due December 31, 2022, but was submitted on March 30, 2023. b. In four (4) instances, Forms FAA 5100‐126 and FAA 5100‐127 which applies for seven (7) of the nine (9) airports, and had a due date of October 31, 2022, were filed on February 9, 2023.
Late filing data collection form and reporting package Condition: The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2023 (9 months after the end of fiscal year).
Late filing data collection form and reporting package Condition: The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2023 (9 months after the end of fiscal year).
Late filing of Milestone Progress Reports and Federal Financial Reports Condition: During our audit procedures, we identified various FFR’s and MPR’s under all grants active during fiscal year 2022 that were not submitted on the required due date as follows: * FFR under grant PR‐05‐0001 due 10/30/2021 was submitted on 12/20/2021. * FFR under grant PR‐90‐X296 due 10/30/2021 was submitted on 12/6/2021. * FFR under grant PR‐05‐0035 due 10/30/2021 was submitted on 12/20/2021. * MPR under grant PR‐05‐0001 due 10/30/2021 was submitted on 12/16/2021. * MPR under grant PR‐90‐X296 due 10/30/2021 was submitted on 12/7/2021. * MPR under grant PR‐05‐0035 due 10/30/2021 was submitted on 12/16/2021. * MPR under grant PR‐05‐0035 due 1/30/2022 has no submission date and we could not validate compliance with timely reporting.
Lack of proper subrecipient monitoring documentation over the procurement process and activities performed by subrecipient. Condition: The Authority lacked appropriate monitoring procedures and documentation over funds passed to the Puerto Rico Maritime Transport Authority under grants PR‐05‐0001, PR ‐05‐0035 and PR‐90‐X296. The Authority does not request results of previous audits including whether or not the subrecipient receives single audit in accordance with 2 CFR Part 200, Subpart F. In addition, the Memorandum of Understanding provided between the Authority and PRMTA ended in fiscal year June 30, 2020, and no extension was provided during the audit.
Lack of completeness of the information included in reports submitted through The Transit Award Management System (TrAMS) Condition: During our examination of our reports sample, we detected the final report for fiscal year June 30, 2022, due to be submitted through TrAMS on July 30, 2022, for grant PR‐05‐0035 did not include the total drawdowns that occurred during the fiscal year.
Late filing data collection form and reporting package Condition: The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2023 (9 months after the end of fiscal year).
Late filing of Milestone Progress Reports and Federal Financial Reports Condition: During our audit procedures, we identified various FFR’s and MPR’s under all grants active during fiscal year 2022 that were not submitted on the required due date as follows: * FFR under grant PR‐05‐0001 due 10/30/2021 was submitted on 12/20/2021. * FFR under grant PR‐90‐X296 due 10/30/2021 was submitted on 12/6/2021. * FFR under grant PR‐05‐0035 due 10/30/2021 was submitted on 12/20/2021. * MPR under grant PR‐05‐0001 due 10/30/2021 was submitted on 12/16/2021. * MPR under grant PR‐90‐X296 due 10/30/2021 was submitted on 12/7/2021. * MPR under grant PR‐05‐0035 due 10/30/2021 was submitted on 12/16/2021. * MPR under grant PR‐05‐0035 due 1/30/2022 has no submission date and we could not validate compliance with timely reporting.
Lack of proper subrecipient monitoring documentation over the procurement process and activities performed by subrecipient. Condition: The Authority lacked appropriate monitoring procedures and documentation over funds passed to the Puerto Rico Maritime Transport Authority under grants PR‐05‐0001, PR ‐05‐0035 and PR‐90‐X296. The Authority does not request results of previous audits including whether or not the subrecipient receives single audit in accordance with 2 CFR Part 200, Subpart F. In addition, the Memorandum of Understanding provided between the Authority and PRMTA ended in fiscal year June 30, 2020, and no extension was provided during the audit.
Lack of completeness of the information included in reports submitted through The Transit Award Management System (TrAMS) Condition: During our examination of our reports sample, we detected the final report for fiscal year June 30, 2022, due to be submitted through TrAMS on July 30, 2022, for grant PR‐05‐0035 did not include the total drawdowns that occurred during the fiscal year.
Late filing data collection form and reporting package Condition: The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2023 (9 months after the end of fiscal year).