Audit 314648

FY End
2022-06-30
Total Expended
$16.11M
Findings
6
Programs
4
Year: 2022 Accepted: 2024-07-09

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
477951 2022-002 - - A
477952 2022-003 - - I
477953 2022-004 Significant Deficiency - L
1054393 2022-002 - - A
1054394 2022-003 - - I
1054395 2022-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
59.075 Shuttered Vennue Operators Grant Program $10.00M Yes 0
21.027 Coronavirus State and Local Recovery Funds $3.80M Yes 3
21.019 Coronavirus Relief Fund $1.32M - 0
97.036 Disaster Grant - Public Assistance (presidentially Declared Disasters) $992,816 Yes 0

Contacts

Name Title Type
MKN8N5EJRTD5 Norberto Perez O'Neill Auditee
7872211592 Victor A. Monserrate Benitez, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Basis of Presentation: The SEFA is prepared from the Authority’s accounting records per the Uniform Guidance (2 CFR Part 200). Key Accounting Policies: Transactions are recorded based on GAAP. Expenses are reported on the accrual basis, following Uniform Guidance cost principles. Federal Assistance Listing Numbers (FALN): Determined based on program name, grant contract information, and SAM.gov listings. Major Federal Programs: Identified in the auditors’ summary of findings and questioned costs. Expense Recognition: Includes prior year expenses that met eligibility requirements in the current fiscal year. Indirect Cost Rate: The de minimis 10% indirect cost rate was not used. De Minimis Rate Used: N Rate Explanation: N/A The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grants activity of the Puerto Rico Convention Center District Authority (the “Authority”), for the year ended June 30, 2022. The information in the 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 (the “Uniform Guidance”)
Title: Summary of Significant Accounting Policies Accounting Policies: Basis of Presentation: The SEFA is prepared from the Authority’s accounting records per the Uniform Guidance (2 CFR Part 200). Key Accounting Policies: Transactions are recorded based on GAAP. Expenses are reported on the accrual basis, following Uniform Guidance cost principles. Federal Assistance Listing Numbers (FALN): Determined based on program name, grant contract information, and SAM.gov listings. Major Federal Programs: Identified in the auditors’ summary of findings and questioned costs. Expense Recognition: Includes prior year expenses that met eligibility requirements in the current fiscal year. Indirect Cost Rate: The de minimis 10% indirect cost rate was not used. De Minimis Rate Used: N Rate Explanation: N/A The Schedule is prepared from the Authority’s accounting records and is not intended to present its financial position or the results of its operations. The financial transactions are recorded by the Authority in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. 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: Federal Assistance Listing Numbers (“FALN”) Accounting Policies: Basis of Presentation: The SEFA is prepared from the Authority’s accounting records per the Uniform Guidance (2 CFR Part 200). Key Accounting Policies: Transactions are recorded based on GAAP. Expenses are reported on the accrual basis, following Uniform Guidance cost principles. Federal Assistance Listing Numbers (FALN): Determined based on program name, grant contract information, and SAM.gov listings. Major Federal Programs: Identified in the auditors’ summary of findings and questioned costs. Expense Recognition: Includes prior year expenses that met eligibility requirements in the current fiscal year. Indirect Cost Rate: The de minimis 10% indirect cost rate was not used. De Minimis Rate Used: N Rate Explanation: N/A The FALN numbers included in the Schedule are determined based on the program name, review of grant contract information and the assistance listings in the System for Award Management (SAM.gov) website. FALN numbers are presented for those programs for which such numbers are available.
Title: Schedule of Expenditures of Federal Awards Accounting Policies: Basis of Presentation: The SEFA is prepared from the Authority’s accounting records per the Uniform Guidance (2 CFR Part 200). Key Accounting Policies: Transactions are recorded based on GAAP. Expenses are reported on the accrual basis, following Uniform Guidance cost principles. Federal Assistance Listing Numbers (FALN): Determined based on program name, grant contract information, and SAM.gov listings. Major Federal Programs: Identified in the auditors’ summary of findings and questioned costs. Expense Recognition: Includes prior year expenses that met eligibility requirements in the current fiscal year. Indirect Cost Rate: The de minimis 10% indirect cost rate was not used. De Minimis Rate Used: N Rate Explanation: N/A The Schedule of Expenditures of Federal Awards includes expenditures incurred in prior years. For the year ended June 30, 2022, the Authority recognized $10,000,000 for the Shuttered Venue Operators Grant Program as well as $992,816 for the Disaster Grant – Public Assistance (Presidentially Declared Disasters) in federal expenditures in the Schedule of Expenditures of Federal Awards that were incurred in prior years but were considered to comply with all eligibility requirements during the fiscal year.
Title: Indirect Cost Accounting Policies: Basis of Presentation: The SEFA is prepared from the Authority’s accounting records per the Uniform Guidance (2 CFR Part 200). Key Accounting Policies: Transactions are recorded based on GAAP. Expenses are reported on the accrual basis, following Uniform Guidance cost principles. Federal Assistance Listing Numbers (FALN): Determined based on program name, grant contract information, and SAM.gov listings. Major Federal Programs: Identified in the auditors’ summary of findings and questioned costs. Expense Recognition: Includes prior year expenses that met eligibility requirements in the current fiscal year. Indirect Cost Rate: The de minimis 10% indirect cost rate was not used. De Minimis Rate Used: N Rate Explanation: N/A The Authority has not used the 10% de minimis indirect cost rate

Finding Details

During our control testwork we identified that one out of the ten samples selected did not have the "Hoja de Requisión, Revision, y Autorización de Pago" signed by the Finance and Budget Director which documents their approval of the expense as having enough budget as well as indicating that the expense to be incurred is allowable per the conditions of the grant.
During our review of the procurements selected we noted that 3 out of 3 did not have clauses that indicated that contractor needed to take affirmative steps listed in 2 CFR 200.321 paragraphs (b)(1) through (5). During our review of the contracts selected for testing we noted that 3 out of 3 did not have an equal opportunity clause included, were not verified as to being suspended or debarred, and did not have the Byrd Anti-Lobbying Amendment certification
During our review of the report preparation procedures, we noted that 11 of the 18 reports required were not submitted to AAFAF. Also, during our report control and compliance test work we also noted the following. 1. One out of four reports selected for testing was not provided and procedures could not be performed; 2. In one out of four reports selected for testing did not include all the transactions reported in the general ledger at the time the report was submitted.;3. Three of the four reports selected were not submitted on time.
During our control testwork we identified that one out of the ten samples selected did not have the "Hoja de Requisión, Revision, y Autorización de Pago" signed by the Finance and Budget Director which documents their approval of the expense as having enough budget as well as indicating that the expense to be incurred is allowable per the conditions of the grant.
During our review of the procurements selected we noted that 3 out of 3 did not have clauses that indicated that contractor needed to take affirmative steps listed in 2 CFR 200.321 paragraphs (b)(1) through (5). During our review of the contracts selected for testing we noted that 3 out of 3 did not have an equal opportunity clause included, were not verified as to being suspended or debarred, and did not have the Byrd Anti-Lobbying Amendment certification
During our review of the report preparation procedures, we noted that 11 of the 18 reports required were not submitted to AAFAF. Also, during our report control and compliance test work we also noted the following. 1. One out of four reports selected for testing was not provided and procedures could not be performed; 2. In one out of four reports selected for testing did not include all the transactions reported in the general ledger at the time the report was submitted.;3. Three of the four reports selected were not submitted on time.