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Audit 316913

FY End
2021-06-30
Total Expended
$1.56M
Findings
2
Programs
1
Organization: Puerto Rico Office Management and Budget (PR)
Year: 2021 Accepted: 2024-08-08
Auditor: Aquino De Córdova LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
480685 2021-001 Significant Deficiency - L
1057127 2021-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.019 Coronavirus Relief Fund $1.56M Yes 1

Contacts

Name Title Type
G8EHSHM986E3 Nivis González Rodriguez Auditee
7877259420 Velvette Barness Pico Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - BASIS OF ACCOUNTING Accounting Policies: A summary of the significant accounting policies used by the Puerto Rico Office of Management and Budget in the preparation of the Schedule follows: a) The accompanying schedule of expenditures of Federal Awards is prepared from The Office’s accounting records and is not intended to present the financial position or results of operations of the Office. b) Disbursements are recognized in the accounting period in which they are paid. c) The Office has not elected to use the 10 percent “de minimis” indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: he Office has not elected to use the 10 percent “de minimis” indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grants activities of the Puerto Rico Office of Management and Budget and is presented on the cash basis of accounting. 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 (Uniform Guidance). The Uniform Guidance requires the Schedule to include the name of the passthrough entity and the identifying number assigned to the pass-through entity for the federal awards received.
Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: A summary of the significant accounting policies used by the Puerto Rico Office of Management and Budget in the preparation of the Schedule follows: a) The accompanying schedule of expenditures of Federal Awards is prepared from The Office’s accounting records and is not intended to present the financial position or results of operations of the Office. b) Disbursements are recognized in the accounting period in which they are paid. c) The Office has not elected to use the 10 percent “de minimis” indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: he Office has not elected to use the 10 percent “de minimis” indirect cost rate allowed under the Uniform Guidance. A summary of the significant accounting policies used by the Puerto Rico Office of Management and Budget in the preparation of the Schedule follows: The accompanying schedule of expenditures of Federal Awards is prepared from The Office’s accounting records and is not intended to present the financial position or results of operations of the Office. Disbursements are recognized in the accounting period in which they are paid. The Office has not elected to use the 10 percent “de minimis” indirect cost rate allowed under the Uniform Guidance.
Title: NOTE C - MAJOR FEDERAL PROGRAM Accounting Policies: A summary of the significant accounting policies used by the Puerto Rico Office of Management and Budget in the preparation of the Schedule follows: a) The accompanying schedule of expenditures of Federal Awards is prepared from The Office’s accounting records and is not intended to present the financial position or results of operations of the Office. b) Disbursements are recognized in the accounting period in which they are paid. c) The Office has not elected to use the 10 percent “de minimis” indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: he Office has not elected to use the 10 percent “de minimis” indirect cost rate allowed under the Uniform Guidance. Major program is identified in the Summary of Auditor’s Results Section of the Schedule of Findings and Questioned Costs.

Finding Details

Finding 2021-001
Finding Number: 2021-001 Agency: Puerto Rico Office of Management and Budget Federal Program: Coronavirus Relief Fund Assistant listing number: 21.019 Grant Number: N/AV Grant Period: July 1, 2020 through June 30, 2021 Compliance Requirement: Reporting Category: Significant Deficiency and noncompliance over federal program Criteria: OMB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $750,000 or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. Condition: During our audit of June 30, 2021 financial statement, we noted that single audit report for fiscal year 2020-2021 was not submitted by September 30, 2022. Cause: Missing of internal controls over financial reporting to produce financial statement on timely basis to comply with OMB reporting deadlines. Effect: Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Recommendation: To improve, execute and monitors accounting periods end closings as planned in order to get a financial statement on time to comply with required deadlines. Also, keep track and communication of federal programs compliances with regulatory parties and among agency’s responsible departments involve and establish a program deadline calendar. Questioned Costs: None Perspective of the information: Single audit report was issued after due date. The information was not drawn from a statistical sample. Management response: The Puerto Rico Office of Management and Budget (OMB) acknowledges the finding and the importance of complying with the OMB Uniform Guidance for single audits. The following actions have been taken and will continue to be implemented to ensure compliance: 1. Contracting External Audit Firms: o Action Taken: OMB has contracted qualified external audit firms to conduct the single audits to ensure compliance with federal requirements. o Outcome: This measure has resolved the immediate issue of non-compliance by ensuring timely submission of audit reports. The OMB complied with instructions from the Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF) regarding reports related to these funds. The OMB presumed that AAFAF was responsible for the final report and audit to the federal government. The OMB will continue monitoring the use and disbursement of federal funds to comply with state and federal regulations. Responsible Officer: Mrs. Nivis González Rodriguez Estimated Completion Date: To work it on or before July 2024.
Finding 2021-001
Finding Number: 2021-001 Agency: Puerto Rico Office of Management and Budget Federal Program: Coronavirus Relief Fund Assistant listing number: 21.019 Grant Number: N/AV Grant Period: July 1, 2020 through June 30, 2021 Compliance Requirement: Reporting Category: Significant Deficiency and noncompliance over federal program Criteria: OMB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $750,000 or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. Condition: During our audit of June 30, 2021 financial statement, we noted that single audit report for fiscal year 2020-2021 was not submitted by September 30, 2022. Cause: Missing of internal controls over financial reporting to produce financial statement on timely basis to comply with OMB reporting deadlines. Effect: Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Recommendation: To improve, execute and monitors accounting periods end closings as planned in order to get a financial statement on time to comply with required deadlines. Also, keep track and communication of federal programs compliances with regulatory parties and among agency’s responsible departments involve and establish a program deadline calendar. Questioned Costs: None Perspective of the information: Single audit report was issued after due date. The information was not drawn from a statistical sample. Management response: The Puerto Rico Office of Management and Budget (OMB) acknowledges the finding and the importance of complying with the OMB Uniform Guidance for single audits. The following actions have been taken and will continue to be implemented to ensure compliance: 1. Contracting External Audit Firms: o Action Taken: OMB has contracted qualified external audit firms to conduct the single audits to ensure compliance with federal requirements. o Outcome: This measure has resolved the immediate issue of non-compliance by ensuring timely submission of audit reports. The OMB complied with instructions from the Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF) regarding reports related to these funds. The OMB presumed that AAFAF was responsible for the final report and audit to the federal government. The OMB will continue monitoring the use and disbursement of federal funds to comply with state and federal regulations. Responsible Officer: Mrs. Nivis González Rodriguez Estimated Completion Date: To work it on or before July 2024.