Audit 324396

FY End
2023-09-30
Total Expended
$3.22M
Findings
12
Programs
4
Year: 2023 Accepted: 2024-10-10
Auditor: J&j CPA LLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
502353 2023-001 Significant Deficiency - N
502354 2023-002 - Yes N
502355 2023-001 Significant Deficiency - N
502356 2023-001 Significant Deficiency - N
502357 2023-001 Significant Deficiency - N
502358 2023-001 Significant Deficiency - N
1078795 2023-001 Significant Deficiency - N
1078796 2023-002 - Yes N
1078797 2023-001 Significant Deficiency - N
1078798 2023-001 Significant Deficiency - N
1078799 2023-001 Significant Deficiency - N
1078800 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.036 Federal Pell Grant $1.83M Yes 2
84.425 Education Stabilization Fund $327,425 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $49,796 Yes 1
84.033 Federal Work-Study Program $30,226 Yes 1

Contacts

Name Title Type
SJP5JNMME7R3 Nancy Morales Auditee
7878822065 Josue Cabrera Auditor
No contacts on file

Notes to SEFA

Title: 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 expenditures are not allowable or are limited as to reimbursement. Universal Technology College of Puerto Rico, Inc. has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance De Minimis Rate Used: N Rate Explanation: N/A The Schedule of Expenditures of Federal Awards (the "Schedule") is presented on the accrual basis of accounting, and its purpose is to present, in summary form, the student financial assistance, training and other activities of Universal Technology College of Puerto Rico, Inc. for the year ended September 30, 2023, which have been financed by federal agencies. Catalog of Federal Domestic Assistance ("CFDA") numbers are presented for those programs for which such numbers are available. Federal programs are presented, as appropriate, by Federal Department.
Title: 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 expenditures are not allowable or are limited as to reimbursement. Universal Technology College of Puerto Rico, Inc. has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance De Minimis Rate Used: N Rate Explanation: N/A 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. Universal Technology College of Puerto Rico, Inc. has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance
Title: MAJOR FEDERAL AWARDS 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 allowable or are limited as to reimbursement. Universal Technology College of Puerto Rico, Inc. has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance De Minimis Rate Used: N Rate Explanation: N/A The Student Financial Aid Cluster, Education Stabilization Fund and Higher Education Institutional Aid were the only major programs of the Institution for the year ended September 30, 2023.
Title: CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBER 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 allowable or are limited as to reimbursement. Universal Technology College of Puerto Rico, Inc. has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance De Minimis Rate Used: N Rate Explanation: N/A The CFDA Numbers included in this schedule were determined based on the Catalog of Federal Domestic Assistance Agency Program Index.
Title: SUBRECIPIENTS 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 allowable or are limited as to reimbursement. Universal Technology College of Puerto Rico, Inc. has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance De Minimis Rate Used: N Rate Explanation: N/A The Project did not provide awards to any subrecipients.

Finding Details

Finding No. 2023-001 SFA Cluster and ESF Funds Compliance Requirement: Reporting Criteria In accordance with 34 C.F.R. § 668.23, an institution must at least annually have an independent auditor conduct a compliance audit of its administration of the Title IV, HEA program(s) in which it participates and an audit of the institution's general purpose financial statements. These audits must, among other requirements, be conducted in accordance with Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200) and must be submitted to the Department no later than nine months after the last day of the institution's fiscal year. Condition The Institution submitted the Single Audit Reporting Package on July 9, 2024, nine days past the established required date. Effect Annual submissions occurring after the expiration of the extended due date may cause the Department to determine that the institution is in violation of the past performance provisions set forth at 34 C.F.R. § 668.174(a)(3), resulting in, among other things, provisional certification, the posting of a letter of credit (except for public institutions), and placement on a heightened cash monitoring payment method. Cause There were several unforeseen situations that delayed the audit and it was completed after the required deadline. Questioned Cost $ -0- Recommendation The Institution must diligently work with their auditor to submit a complete and acceptable audit as quickly as possible and moving forward, your institutions audits are due before June 30th of every year and you should be working with your auditor well in advance of that deadline to submit. Management Response The institution’s management agrees with the auditor. See corrective action plan
Finding No. 2023-002 CFDA No: 84.063 Program Name: Pell Grant Compliance Requirement: Disbursements – Reporting disbursements on COD. Criteria Reconciliation is the process by which a school reviews and compares Title IV aid (grants, loans, and campus-based aid) recorded on the Department’s systems (COD System) with the information in the school’s internal records. Schools should reconcile both internally (between Business Office and Financial Aid Office data) and externally (between school data and the COD System). Condition We identified one (1) instance on which the student disbursement ledger date did not agree with COD disbursement date. Effect The Institution did not report the correct date on COD. Cause The Institution recorded the COD date on the day the officer recorded the transaction on COD and the Ledger date the day the disbursement was recorded by the officer. Questioned Cost $ -0- Recommendation The Institution must reinforce its internal control procedures to ensure that the student disbursement date agrees with COD disbursement date. Through reconciliation, disbursement and cash discrepancies are identified and resolved in a timely manner to ensure the school meets all regulatory requirements. Schools must document their reconciliation efforts and retain this documentation for auditing purposes. Management Response The institution’s management agrees with the auditor. See corrective action plan.
Finding No. 2023-001 SFA Cluster and ESF Funds Compliance Requirement: Reporting Criteria In accordance with 34 C.F.R. § 668.23, an institution must at least annually have an independent auditor conduct a compliance audit of its administration of the Title IV, HEA program(s) in which it participates and an audit of the institution's general purpose financial statements. These audits must, among other requirements, be conducted in accordance with Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200) and must be submitted to the Department no later than nine months after the last day of the institution's fiscal year. Condition The Institution submitted the Single Audit Reporting Package on July 9, 2024, nine days past the established required date. Effect Annual submissions occurring after the expiration of the extended due date may cause the Department to determine that the institution is in violation of the past performance provisions set forth at 34 C.F.R. § 668.174(a)(3), resulting in, among other things, provisional certification, the posting of a letter of credit (except for public institutions), and placement on a heightened cash monitoring payment method. Cause There were several unforeseen situations that delayed the audit and it was completed after the required deadline. Questioned Cost $ -0- Recommendation The Institution must diligently work with their auditor to submit a complete and acceptable audit as quickly as possible and moving forward, your institutions audits are due before June 30th of every year and you should be working with your auditor well in advance of that deadline to submit. Management Response The institution’s management agrees with the auditor. See corrective action plan
Finding No. 2023-001 SFA Cluster and ESF Funds Compliance Requirement: Reporting Criteria In accordance with 34 C.F.R. § 668.23, an institution must at least annually have an independent auditor conduct a compliance audit of its administration of the Title IV, HEA program(s) in which it participates and an audit of the institution's general purpose financial statements. These audits must, among other requirements, be conducted in accordance with Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200) and must be submitted to the Department no later than nine months after the last day of the institution's fiscal year. Condition The Institution submitted the Single Audit Reporting Package on July 9, 2024, nine days past the established required date. Effect Annual submissions occurring after the expiration of the extended due date may cause the Department to determine that the institution is in violation of the past performance provisions set forth at 34 C.F.R. § 668.174(a)(3), resulting in, among other things, provisional certification, the posting of a letter of credit (except for public institutions), and placement on a heightened cash monitoring payment method. Cause There were several unforeseen situations that delayed the audit and it was completed after the required deadline. Questioned Cost $ -0- Recommendation The Institution must diligently work with their auditor to submit a complete and acceptable audit as quickly as possible and moving forward, your institutions audits are due before June 30th of every year and you should be working with your auditor well in advance of that deadline to submit. Management Response The institution’s management agrees with the auditor. See corrective action plan
Finding No. 2023-001 SFA Cluster and ESF Funds Compliance Requirement: Reporting Criteria In accordance with 34 C.F.R. § 668.23, an institution must at least annually have an independent auditor conduct a compliance audit of its administration of the Title IV, HEA program(s) in which it participates and an audit of the institution's general purpose financial statements. These audits must, among other requirements, be conducted in accordance with Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200) and must be submitted to the Department no later than nine months after the last day of the institution's fiscal year. Condition The Institution submitted the Single Audit Reporting Package on July 9, 2024, nine days past the established required date. Effect Annual submissions occurring after the expiration of the extended due date may cause the Department to determine that the institution is in violation of the past performance provisions set forth at 34 C.F.R. § 668.174(a)(3), resulting in, among other things, provisional certification, the posting of a letter of credit (except for public institutions), and placement on a heightened cash monitoring payment method. Cause There were several unforeseen situations that delayed the audit and it was completed after the required deadline. Questioned Cost $ -0- Recommendation The Institution must diligently work with their auditor to submit a complete and acceptable audit as quickly as possible and moving forward, your institutions audits are due before June 30th of every year and you should be working with your auditor well in advance of that deadline to submit. Management Response The institution’s management agrees with the auditor. See corrective action plan
Finding No. 2023-001 SFA Cluster and ESF Funds Compliance Requirement: Reporting Criteria In accordance with 34 C.F.R. § 668.23, an institution must at least annually have an independent auditor conduct a compliance audit of its administration of the Title IV, HEA program(s) in which it participates and an audit of the institution's general purpose financial statements. These audits must, among other requirements, be conducted in accordance with Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200) and must be submitted to the Department no later than nine months after the last day of the institution's fiscal year. Condition The Institution submitted the Single Audit Reporting Package on July 9, 2024, nine days past the established required date. Effect Annual submissions occurring after the expiration of the extended due date may cause the Department to determine that the institution is in violation of the past performance provisions set forth at 34 C.F.R. § 668.174(a)(3), resulting in, among other things, provisional certification, the posting of a letter of credit (except for public institutions), and placement on a heightened cash monitoring payment method. Cause There were several unforeseen situations that delayed the audit and it was completed after the required deadline. Questioned Cost $ -0- Recommendation The Institution must diligently work with their auditor to submit a complete and acceptable audit as quickly as possible and moving forward, your institutions audits are due before June 30th of every year and you should be working with your auditor well in advance of that deadline to submit. Management Response The institution’s management agrees with the auditor. See corrective action plan
Finding No. 2023-001 SFA Cluster and ESF Funds Compliance Requirement: Reporting Criteria In accordance with 34 C.F.R. § 668.23, an institution must at least annually have an independent auditor conduct a compliance audit of its administration of the Title IV, HEA program(s) in which it participates and an audit of the institution's general purpose financial statements. These audits must, among other requirements, be conducted in accordance with Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200) and must be submitted to the Department no later than nine months after the last day of the institution's fiscal year. Condition The Institution submitted the Single Audit Reporting Package on July 9, 2024, nine days past the established required date. Effect Annual submissions occurring after the expiration of the extended due date may cause the Department to determine that the institution is in violation of the past performance provisions set forth at 34 C.F.R. § 668.174(a)(3), resulting in, among other things, provisional certification, the posting of a letter of credit (except for public institutions), and placement on a heightened cash monitoring payment method. Cause There were several unforeseen situations that delayed the audit and it was completed after the required deadline. Questioned Cost $ -0- Recommendation The Institution must diligently work with their auditor to submit a complete and acceptable audit as quickly as possible and moving forward, your institutions audits are due before June 30th of every year and you should be working with your auditor well in advance of that deadline to submit. Management Response The institution’s management agrees with the auditor. See corrective action plan
Finding No. 2023-002 CFDA No: 84.063 Program Name: Pell Grant Compliance Requirement: Disbursements – Reporting disbursements on COD. Criteria Reconciliation is the process by which a school reviews and compares Title IV aid (grants, loans, and campus-based aid) recorded on the Department’s systems (COD System) with the information in the school’s internal records. Schools should reconcile both internally (between Business Office and Financial Aid Office data) and externally (between school data and the COD System). Condition We identified one (1) instance on which the student disbursement ledger date did not agree with COD disbursement date. Effect The Institution did not report the correct date on COD. Cause The Institution recorded the COD date on the day the officer recorded the transaction on COD and the Ledger date the day the disbursement was recorded by the officer. Questioned Cost $ -0- Recommendation The Institution must reinforce its internal control procedures to ensure that the student disbursement date agrees with COD disbursement date. Through reconciliation, disbursement and cash discrepancies are identified and resolved in a timely manner to ensure the school meets all regulatory requirements. Schools must document their reconciliation efforts and retain this documentation for auditing purposes. Management Response The institution’s management agrees with the auditor. See corrective action plan.
Finding No. 2023-001 SFA Cluster and ESF Funds Compliance Requirement: Reporting Criteria In accordance with 34 C.F.R. § 668.23, an institution must at least annually have an independent auditor conduct a compliance audit of its administration of the Title IV, HEA program(s) in which it participates and an audit of the institution's general purpose financial statements. These audits must, among other requirements, be conducted in accordance with Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200) and must be submitted to the Department no later than nine months after the last day of the institution's fiscal year. Condition The Institution submitted the Single Audit Reporting Package on July 9, 2024, nine days past the established required date. Effect Annual submissions occurring after the expiration of the extended due date may cause the Department to determine that the institution is in violation of the past performance provisions set forth at 34 C.F.R. § 668.174(a)(3), resulting in, among other things, provisional certification, the posting of a letter of credit (except for public institutions), and placement on a heightened cash monitoring payment method. Cause There were several unforeseen situations that delayed the audit and it was completed after the required deadline. Questioned Cost $ -0- Recommendation The Institution must diligently work with their auditor to submit a complete and acceptable audit as quickly as possible and moving forward, your institutions audits are due before June 30th of every year and you should be working with your auditor well in advance of that deadline to submit. Management Response The institution’s management agrees with the auditor. See corrective action plan
Finding No. 2023-001 SFA Cluster and ESF Funds Compliance Requirement: Reporting Criteria In accordance with 34 C.F.R. § 668.23, an institution must at least annually have an independent auditor conduct a compliance audit of its administration of the Title IV, HEA program(s) in which it participates and an audit of the institution's general purpose financial statements. These audits must, among other requirements, be conducted in accordance with Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200) and must be submitted to the Department no later than nine months after the last day of the institution's fiscal year. Condition The Institution submitted the Single Audit Reporting Package on July 9, 2024, nine days past the established required date. Effect Annual submissions occurring after the expiration of the extended due date may cause the Department to determine that the institution is in violation of the past performance provisions set forth at 34 C.F.R. § 668.174(a)(3), resulting in, among other things, provisional certification, the posting of a letter of credit (except for public institutions), and placement on a heightened cash monitoring payment method. Cause There were several unforeseen situations that delayed the audit and it was completed after the required deadline. Questioned Cost $ -0- Recommendation The Institution must diligently work with their auditor to submit a complete and acceptable audit as quickly as possible and moving forward, your institutions audits are due before June 30th of every year and you should be working with your auditor well in advance of that deadline to submit. Management Response The institution’s management agrees with the auditor. See corrective action plan
Finding No. 2023-001 SFA Cluster and ESF Funds Compliance Requirement: Reporting Criteria In accordance with 34 C.F.R. § 668.23, an institution must at least annually have an independent auditor conduct a compliance audit of its administration of the Title IV, HEA program(s) in which it participates and an audit of the institution's general purpose financial statements. These audits must, among other requirements, be conducted in accordance with Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200) and must be submitted to the Department no later than nine months after the last day of the institution's fiscal year. Condition The Institution submitted the Single Audit Reporting Package on July 9, 2024, nine days past the established required date. Effect Annual submissions occurring after the expiration of the extended due date may cause the Department to determine that the institution is in violation of the past performance provisions set forth at 34 C.F.R. § 668.174(a)(3), resulting in, among other things, provisional certification, the posting of a letter of credit (except for public institutions), and placement on a heightened cash monitoring payment method. Cause There were several unforeseen situations that delayed the audit and it was completed after the required deadline. Questioned Cost $ -0- Recommendation The Institution must diligently work with their auditor to submit a complete and acceptable audit as quickly as possible and moving forward, your institutions audits are due before June 30th of every year and you should be working with your auditor well in advance of that deadline to submit. Management Response The institution’s management agrees with the auditor. See corrective action plan
Finding No. 2023-001 SFA Cluster and ESF Funds Compliance Requirement: Reporting Criteria In accordance with 34 C.F.R. § 668.23, an institution must at least annually have an independent auditor conduct a compliance audit of its administration of the Title IV, HEA program(s) in which it participates and an audit of the institution's general purpose financial statements. These audits must, among other requirements, be conducted in accordance with Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200) and must be submitted to the Department no later than nine months after the last day of the institution's fiscal year. Condition The Institution submitted the Single Audit Reporting Package on July 9, 2024, nine days past the established required date. Effect Annual submissions occurring after the expiration of the extended due date may cause the Department to determine that the institution is in violation of the past performance provisions set forth at 34 C.F.R. § 668.174(a)(3), resulting in, among other things, provisional certification, the posting of a letter of credit (except for public institutions), and placement on a heightened cash monitoring payment method. Cause There were several unforeseen situations that delayed the audit and it was completed after the required deadline. Questioned Cost $ -0- Recommendation The Institution must diligently work with their auditor to submit a complete and acceptable audit as quickly as possible and moving forward, your institutions audits are due before June 30th of every year and you should be working with your auditor well in advance of that deadline to submit. Management Response The institution’s management agrees with the auditor. See corrective action plan