Audit 317976

FY End
2022-06-30
Total Expended
$20.17M
Findings
14
Programs
5
Year: 2022 Accepted: 2024-08-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
485165 2022-005 - Yes L
485166 2022-005 - Yes L
485167 2022-005 - Yes L
485168 2022-004 Significant Deficiency - F
485169 2022-005 - Yes L
485170 2022-005 - Yes L
485171 2022-005 - Yes L
1061607 2022-005 - Yes L
1061608 2022-005 - Yes L
1061609 2022-005 - Yes L
1061610 2022-004 Significant Deficiency - F
1061611 2022-005 - Yes L
1061612 2022-005 - Yes L
1061613 2022-005 - Yes L

Contacts

Name Title Type
VFM1ZUECKT15 Arelis Rivera Auditee
7872940500 Idsa Ramos Auditor
No contacts on file

Notes to SEFA

Title: Note A Basis of Presentation 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 of expenditures are not allowable or are limited as to reimbursment. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Puerto Rico Metropolitan Bus Authority (the Authority), a component unit of the Commonwealth of Puerto Rico, under programs of the federal government 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 (CFR Part 200), Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from the amounts presented in, or used in the preparation of, the basic 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 and changes in net position of the Authority. The Catalog of Federal Domestic Assistance (CFDA) Number 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.State or local government redistributions of federal awards to the Authority, known as “pass - through awards”, should be treated by the Authority as though they were received directly from the federal government. The Uniform Guidance requires the Schedule to include the name of the pass - through entity and the identifying number assigned by the pass - through entity for the federal awards received as a sub- recipient. Numbers identified as N/A are not applicable, and numbers identified as N/AV are not available.
Title: Note B Summary of Significant Accounting Policies 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 of expenditures are not allowable or are limited as to reimbursment. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance. 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: Note C Indirect Cost Rate 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 of expenditures are not allowable or are limited as to reimbursment. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance. The Authority has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance.
Title: Note D Coronavirus AID, Relief and Economic Security (CARES) Act Program 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 of expenditures are not allowable or are limited as to reimbursment. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance. The Authority was granted with additional CARES Act funds on February 5, 2021, for an amount of approximately $21 million.  Generally, expenditures are reported on the SEFA when costs are incurred, and an award is determined to exist. The Authority reported eligible costs incurred of $6,420,409 from the period July 7, 2021 to June 30, 2022.

Finding Details

2 CFR Part 200.512, Report Submission-General, states that (1) The audit must be completed and the Data Collection Form and the Reporting Package 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. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Authority is not in compliance with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants. The Authority has not been able to provide the necessary information for the preparation of the Single Audit report on a timely basis in order to complete its reporting requirements for the fiscal year 2022.
2 CFR Part 200.512, Report Submission-General, states that (1) The audit must be completed and the Data Collection Form and the Reporting Package 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. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Authority is not in compliance with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants. The Authority has not been able to provide the necessary information for the preparation of the Single Audit report on a timely basis in order to complete its reporting requirements for the fiscal year 2022.
2 CFR Part 200.512, Report Submission-General, states that (1) The audit must be completed and the Data Collection Form and the Reporting Package 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. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Authority is not in compliance with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants. The Authority has not been able to provide the necessary information for the preparation of the Single Audit report on a timely basis in order to complete its reporting requirements for the fiscal year 2022.
2 CFR section 200.313(d) Equipment Management Requirements requires that (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. (2) A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years. During our audit procedures over the compliance requirement of equipment management we noted that the physical inventory of the property and equipment has not been reconciled with the general ledger of the accounting records. We identified certain additions in the general ledger that were not included in the inventory and noted inconsistencies in the period in which the additions were recorded in the general ledger and the acquisition date per the physical inventory report. The lack of reconciliation of the physical inventory and the general ledger may cause errors in the accounting records and/or misuse of the equipment purchased with federal funds that may result in questioned costs. This situation is caused by the lack of adequate internal control procedures for reconciling and analyzing the financial transactions related to capital assets recorded throughout the year.
2 CFR Part 200.512, Report Submission-General, states that (1) The audit must be completed and the Data Collection Form and the Reporting Package 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. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Authority is not in compliance with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants. The Authority has not been able to provide the necessary information for the preparation of the Single Audit report on a timely basis in order to complete its reporting requirements for the fiscal year 2022.
2 CFR Part 200.512, Report Submission-General, states that (1) The audit must be completed and the Data Collection Form and the Reporting Package 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. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Authority is not in compliance with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants. The Authority has not been able to provide the necessary information for the preparation of the Single Audit report on a timely basis in order to complete its reporting requirements for the fiscal year 2022.
2 CFR Part 200.512, Report Submission-General, states that (1) The audit must be completed and the Data Collection Form and the Reporting Package 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. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Authority is not in compliance with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants. The Authority has not been able to provide the necessary information for the preparation of the Single Audit report on a timely basis in order to complete its reporting requirements for the fiscal year 2022.
2 CFR Part 200.512, Report Submission-General, states that (1) The audit must be completed and the Data Collection Form and the Reporting Package 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. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Authority is not in compliance with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants. The Authority has not been able to provide the necessary information for the preparation of the Single Audit report on a timely basis in order to complete its reporting requirements for the fiscal year 2022.
2 CFR Part 200.512, Report Submission-General, states that (1) The audit must be completed and the Data Collection Form and the Reporting Package 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. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Authority is not in compliance with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants. The Authority has not been able to provide the necessary information for the preparation of the Single Audit report on a timely basis in order to complete its reporting requirements for the fiscal year 2022.
2 CFR Part 200.512, Report Submission-General, states that (1) The audit must be completed and the Data Collection Form and the Reporting Package 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. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Authority is not in compliance with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants. The Authority has not been able to provide the necessary information for the preparation of the Single Audit report on a timely basis in order to complete its reporting requirements for the fiscal year 2022.
2 CFR section 200.313(d) Equipment Management Requirements requires that (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. (2) A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years. During our audit procedures over the compliance requirement of equipment management we noted that the physical inventory of the property and equipment has not been reconciled with the general ledger of the accounting records. We identified certain additions in the general ledger that were not included in the inventory and noted inconsistencies in the period in which the additions were recorded in the general ledger and the acquisition date per the physical inventory report. The lack of reconciliation of the physical inventory and the general ledger may cause errors in the accounting records and/or misuse of the equipment purchased with federal funds that may result in questioned costs. This situation is caused by the lack of adequate internal control procedures for reconciling and analyzing the financial transactions related to capital assets recorded throughout the year.
2 CFR Part 200.512, Report Submission-General, states that (1) The audit must be completed and the Data Collection Form and the Reporting Package 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. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Authority is not in compliance with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants. The Authority has not been able to provide the necessary information for the preparation of the Single Audit report on a timely basis in order to complete its reporting requirements for the fiscal year 2022.
2 CFR Part 200.512, Report Submission-General, states that (1) The audit must be completed and the Data Collection Form and the Reporting Package 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. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Authority is not in compliance with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants. The Authority has not been able to provide the necessary information for the preparation of the Single Audit report on a timely basis in order to complete its reporting requirements for the fiscal year 2022.
2 CFR Part 200.512, Report Submission-General, states that (1) The audit must be completed and the Data Collection Form and the Reporting Package 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. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Authority is not in compliance with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants. The Authority has not been able to provide the necessary information for the preparation of the Single Audit report on a timely basis in order to complete its reporting requirements for the fiscal year 2022.