Finding Reference 2022-008 Federal Agency: All Mayor Programs and Cluster Federal Program Title and ALN: Compliance Requirement: Single Audit Act Type of finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period. Cause of Condition The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect of Condition The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned Costs None Prior-Year Finding No View of Responsible Official and Planned Corrective Action Plan The Finance and Budget Department will take the necessaries measurements to achieve that the single audit report of the fiscal year 2022-2023 be submitted to the Federal Audit Clearinghouse in a timely manner. Implementation Date March 31, 2024 Responsible Person Mrs. Damaris Suliveres, Finance and Budget Director
Finding Reference 2022-008 Federal Agency: All Mayor Programs and Cluster Federal Program Title and ALN: Compliance Requirement: Single Audit Act Type of finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period. Cause of Condition The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect of Condition The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned Costs None Prior-Year Finding No View of Responsible Official and Planned Corrective Action Plan The Finance and Budget Department will take the necessaries measurements to achieve that the single audit report of the fiscal year 2022-2023 be submitted to the Federal Audit Clearinghouse in a timely manner. Implementation Date March 31, 2024 Responsible Person Mrs. Damaris Suliveres, Finance and Budget Director
Finding Reference 2022-007 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title and ALN: Lower Income Housing Assistance Program ? Section 8 Moderate Rehabilitation (ALN 14.856) Compliance Requirement: Reporting ? Financial Reporting (L) (MW) Type of finding: Material Weakness in Internal Control (MW), Instance of Noncompliance (NC) Statement of Condition During our audit procedures over the reporting of FASS-PH System, we noted that the Unaudited REAC report for fiscal year June 30, 2022 was not submitted. Criteria Financial Assessment Sub-system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The Uniform Financial Reporting Standards requires PHA to submit the Unaudited REAC 60 days after fiscal year end. Due to the COVID-19 Pandemic, a waiver was granted, extending the due date 60 more days (October 31, 2021) after fiscal year end. The FASS-PH system is one of HUD?s main monitoring and oversight system for the HCVP. Cause of Condition The program staff faced performance challenges due to the COVID-19 Pandemic, also the accounting records were delayed for such event. Effect of Condition The Municipality failed to submit the required REAC report within the 60 calendar days required by the regulation, which leads to the noncompliance of the reporting requirement. Recommendation We recommend to the Municipality?s management to implement proper internal controls in order to ascertain that the reports are submitted timely. Questioned Costs None Prior-Year Finding This finding is similar to prior year finding 2021-008, 2020-011 and 2019-010. View of Responsible Official and Planned Corrective Action Plan As indicated for the finding 2022-004, the Section 8 Program is taking corrective action measurements addressed to achieve the timely submission of GAAP-based unaudited financial data and audited financial information electronically to HUD. As a part of such measurements, a new accountant has been recruited by the Section 8 Program, to who was assigned the responsibility of prepare and submit, on a timely basis, the required financial information, in accordance with the guides established by HUD. The Central Accounting Department have established a work sheet to be used as model by the accountant to collect and organize financial information to be used in the preparation of required financial reports. Implementation Date March 31, 2024 Responsible Person Mr. Job Bonilla, Federal Program Director
Finding Reference 2022-008 Federal Agency: All Mayor Programs and Cluster Federal Program Title and ALN: Compliance Requirement: Single Audit Act Type of finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period. Cause of Condition The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect of Condition The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned Costs None Prior-Year Finding No View of Responsible Official and Planned Corrective Action Plan The Finance and Budget Department will take the necessaries measurements to achieve that the single audit report of the fiscal year 2022-2023 be submitted to the Federal Audit Clearinghouse in a timely manner. Implementation Date March 31, 2024 Responsible Person Mrs. Damaris Suliveres, Finance and Budget Director
Finding Reference 2022-008 Federal Agency: All Mayor Programs and Cluster Federal Program Title and ALN: Compliance Requirement: Single Audit Act Type of finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period. Cause of Condition The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect of Condition The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned Costs None Prior-Year Finding No View of Responsible Official and Planned Corrective Action Plan The Finance and Budget Department will take the necessaries measurements to achieve that the single audit report of the fiscal year 2022-2023 be submitted to the Federal Audit Clearinghouse in a timely manner. Implementation Date March 31, 2024 Responsible Person Mrs. Damaris Suliveres, Finance and Budget Director
Finding Reference 2022-008 Federal Agency: All Mayor Programs and Cluster Federal Program Title and ALN: Compliance Requirement: Single Audit Act Type of finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period. Cause of Condition The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect of Condition The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned Costs None Prior-Year Finding No View of Responsible Official and Planned Corrective Action Plan The Finance and Budget Department will take the necessaries measurements to achieve that the single audit report of the fiscal year 2022-2023 be submitted to the Federal Audit Clearinghouse in a timely manner. Implementation Date March 31, 2024 Responsible Person Mrs. Damaris Suliveres, Finance and Budget Director
Finding Reference 2022-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title and ALN: Section 8 Housing Choice Vouchers (ALN 14.871) Compliance Requirement: Reporting ? Financial Reporting (L) (MW) Type of finding: Material Weakness in Internal Control (MW), Instance of Noncompliance (NC) Statement of Condition During our audit procedures over the reporting of FASS-PH System, we noted that the Unaudited REAC report for fiscal year June 30, 2022 was not submitted. Criteria Financial Assessment Sub-system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The Uniform Financial Reporting Standards requires PHA to submit the Unaudited REAC 60 days after fiscal year end. Due to the COVID-19 Pandemic, a waiver was granted, extending the due date 60 more days (October 31, 2021) after fiscal year end. The FASS-PH system is one of HUD?s main monitoring and oversight system for the HCVP. Cause of Condition The program staff faced performance challenges due to the COVID-19 Pandemic, also the accounting records were delayed for such event. Effect of Condition The Municipality failed to submit the required REAC report within the 60 calendar days required by the regulation, which leads to the noncompliance of the reporting requirement. Recommendation We recommend to the Municipality?s management to implement proper internal controls in order to ascertain that the reports are submitted timely. Questioned Costs None Prior-Year Finding This finding is similar to prior year finding 2021-005, 2020-009 and 2019-009. View of Responsible Official and Planned Corrective Action Plan As indicated to the finding 2022-002, the Municipality uses a mechanized accounting system (SIMA), which is also used by the Section 8 Program. The accounting system contains some reports that provide reliable financial data used to prepare the unaudited REAC Report. The Section 8 Program is taking corrective action measurements addressed to achieve the timely submission of GAAP-based unaudited financial data electronically to HUD. As a part of such measurements, a new accountant has been recruited by the Program, to who was assigned the responsibility of prepare and submit, on a timely basis, the required financial information, in accordance with the guides established by HUD. Also, the Central Accounting Department have established a working sheet to be used as model by the accountant to collect and organize financial information to be used in the preparation of required financial reports. Implementation Date March 31, 2024 Responsible Person Mr. Job Bonilla, Federal Program Director
Finding Reference 2022-005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title and ALN: Section 8 Housing Choice Vouchers (ALN 14.871) Compliance Requirement: Accounting Records ? Financial Reporting (L) (MW) Type of finding: Material Weakness in Internal Control (MW), Instance of Noncompliance (NC) Statement of Condition During our audit, we noted that the Program did not maintain an adequate set of accounting records for the Section 8 Housing Choice Vouchers to fairly present the financial position of the program and results of its operations. Criteria 24 CFR Subpart C, Part 85.20 (b) (2) states that the grantees and sub grantees must maintain records which adequately identify the source and application of funds, provided for financially-assisted activities. These records must contain information pertaining to grant or sub grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures, and income. 24 CFR Subpart D Section 982.158 (a) established that the PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be in the form required by HUD, including requirements governing computerized or electronic forms or record-keeping. The municipality must comply with the financial reporting requirements in 24 CFR part 5, subpart K. The financial management system of other grantees and sub-grantees must meet the following standards: ? Financial reporting: Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. ? Accounting records: Grantees and sub-grantees must maintain records which adequately identify the source and application of funds provided for financially-assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures, and income. Cause of Condition Adequate internal control and proper monitoring procedures do not exist to ensure the maintenance of complete set of accounting records as required by the Program?s regulations and grant agreement. Also, the accounting personnel does not possess the adequate training to ensure a proper recognition of the Program?s financial transactions. Effect of Condition The Program?s accounting system did not provide updated and complete financial information that present the financial position and the result of operations and the change in fund balances. Such information is necessary to take management decisions. In addition, the Program?s reports related to federal funding may be misleading for internal management decision making and for the reliability of external financial reporting. Recommendation Management should take necessary steps to establish and maintaining proper internal controls and periodic monitoring procedures to ensure the correct recognition of the Program?s financial and budgetary transactions in a complete set of accounting records, using the double-entry system. The Program must give financial training to the personnel in charge of the accounting record-keeping and preparation of the financial reports to ascertain that: (1) the accounting system complies with state and federal laws, (2) all the transactions related to assets, liabilities, revenues and expenditures is recorded and reconciled in a timely manner. Questioned Costs None Prior-Year Finding This finding is similar to prior year finding 2020-008 and 2019-008. View of Responsible Official and Planned Corrective Action Plan The Department of Finance and Budget of the Municipality establish a new monitoring procedure for the preparation and authorization of journal entries to each transaction related to assets, liabilities, revenues and expenditures. Also, the Section 8 Program will give financial training to the personnel in charge of the accounting record-keeping and preparation of the financial reports in order to make sure that the accounting system complies with state and federal laws. Implementation Date March 31, 2024 Responsible Person Mr. Job Bonilla, Federal Program Director
Finding Reference 2022-006 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title and ALN: Section 8 Housing Choice Vouchers (ALN 14.871) Compliance Requirement: Special Test ? Rolling Forward Equity Balances Type of finding: Material Weakness in Internal Control (MW), Instance of Noncompliance (NC) Statement of Condition As part of our audit procedures over the monthly submitted reports, Voucher Management System (VMS), we required evidence of how the Administrative Fee Equity and HAP Equity were calculated. The accountant did not provide a monthly detail that reconciled with the information submitted in the VMS. In addition, the amounts presented in the VMS at June 30, 2022, do not reconcile with the amounts presented in the Financial Data Schedule (FDS). Criteria 24 CFR 982.158 (a) states that the PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be form required by HUD, including requirements governing computerized or electronic forms of record-keeping. The must comply with the financial reporting requirements in 24 CFR Part 5, Subpart H. Cause of Condition The program accountants do not reconcile the HAP and Administrative Fee Equity balances monthly. Effect of Condition The Municipality did not have proper accounting records to allow them maintain complete and accurate to detect and correct accounting errors in a timely manner. Recommendation We recommend management to prepare the bank conciliations timely, and reconcile on a monthly basis the HAP and Administrative Fee equity balances and document it. Questioned Costs None Prior-Year Finding This finding is similar to prior year finding 2021-007 and 2020-010. View of Responsible Official and Planned Corrective Action Plan Corrective action has been taken consisting in the timely preparation of the bank conciliations. However, the corrective actions needed to evidence the HAP and Administrative Fee equity balances calculation will be taken by the Municipal Finance Office and the Program Accountants. Also, adequate measurements addressed to reconcile the VMS with the Financial Data Schedule (FDS) will be taken. Implementation Date March 31, 2024 Responsible Person Mr. Job Bonilla, Federal Program Director
Finding Reference 2022-008 Federal Agency: All Mayor Programs and Cluster Federal Program Title and ALN: Compliance Requirement: Single Audit Act Type of finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period. Cause of Condition The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect of Condition The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned Costs None Prior-Year Finding No View of Responsible Official and Planned Corrective Action Plan The Finance and Budget Department will take the necessaries measurements to achieve that the single audit report of the fiscal year 2022-2023 be submitted to the Federal Audit Clearinghouse in a timely manner. Implementation Date March 31, 2024 Responsible Person Mrs. Damaris Suliveres, Finance and Budget Director
Finding Reference 2022-008 Federal Agency: All Mayor Programs and Cluster Federal Program Title and ALN: Compliance Requirement: Single Audit Act Type of finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period. Cause of Condition The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect of Condition The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned Costs None Prior-Year Finding No View of Responsible Official and Planned Corrective Action Plan The Finance and Budget Department will take the necessaries measurements to achieve that the single audit report of the fiscal year 2022-2023 be submitted to the Federal Audit Clearinghouse in a timely manner. Implementation Date March 31, 2024 Responsible Person Mrs. Damaris Suliveres, Finance and Budget Director
Finding Reference 2022-008 Federal Agency: All Mayor Programs and Cluster Federal Program Title and ALN: Compliance Requirement: Single Audit Act Type of finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period. Cause of Condition The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect of Condition The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned Costs None Prior-Year Finding No View of Responsible Official and Planned Corrective Action Plan The Finance and Budget Department will take the necessaries measurements to achieve that the single audit report of the fiscal year 2022-2023 be submitted to the Federal Audit Clearinghouse in a timely manner. Implementation Date March 31, 2024 Responsible Person Mrs. Damaris Suliveres, Finance and Budget Director
Finding Reference 2022-008 Federal Agency: All Mayor Programs and Cluster Federal Program Title and ALN: Compliance Requirement: Single Audit Act Type of finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period. Cause of Condition The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect of Condition The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned Costs None Prior-Year Finding No View of Responsible Official and Planned Corrective Action Plan The Finance and Budget Department will take the necessaries measurements to achieve that the single audit report of the fiscal year 2022-2023 be submitted to the Federal Audit Clearinghouse in a timely manner. Implementation Date March 31, 2024 Responsible Person Mrs. Damaris Suliveres, Finance and Budget Director
Finding Reference 2022-007 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title and ALN: Lower Income Housing Assistance Program ? Section 8 Moderate Rehabilitation (ALN 14.856) Compliance Requirement: Reporting ? Financial Reporting (L) (MW) Type of finding: Material Weakness in Internal Control (MW), Instance of Noncompliance (NC) Statement of Condition During our audit procedures over the reporting of FASS-PH System, we noted that the Unaudited REAC report for fiscal year June 30, 2022 was not submitted. Criteria Financial Assessment Sub-system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The Uniform Financial Reporting Standards requires PHA to submit the Unaudited REAC 60 days after fiscal year end. Due to the COVID-19 Pandemic, a waiver was granted, extending the due date 60 more days (October 31, 2021) after fiscal year end. The FASS-PH system is one of HUD?s main monitoring and oversight system for the HCVP. Cause of Condition The program staff faced performance challenges due to the COVID-19 Pandemic, also the accounting records were delayed for such event. Effect of Condition The Municipality failed to submit the required REAC report within the 60 calendar days required by the regulation, which leads to the noncompliance of the reporting requirement. Recommendation We recommend to the Municipality?s management to implement proper internal controls in order to ascertain that the reports are submitted timely. Questioned Costs None Prior-Year Finding This finding is similar to prior year finding 2021-008, 2020-011 and 2019-010. View of Responsible Official and Planned Corrective Action Plan As indicated for the finding 2022-004, the Section 8 Program is taking corrective action measurements addressed to achieve the timely submission of GAAP-based unaudited financial data and audited financial information electronically to HUD. As a part of such measurements, a new accountant has been recruited by the Section 8 Program, to who was assigned the responsibility of prepare and submit, on a timely basis, the required financial information, in accordance with the guides established by HUD. The Central Accounting Department have established a work sheet to be used as model by the accountant to collect and organize financial information to be used in the preparation of required financial reports. Implementation Date March 31, 2024 Responsible Person Mr. Job Bonilla, Federal Program Director
Finding Reference 2022-008 Federal Agency: All Mayor Programs and Cluster Federal Program Title and ALN: Compliance Requirement: Single Audit Act Type of finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period. Cause of Condition The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect of Condition The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned Costs None Prior-Year Finding No View of Responsible Official and Planned Corrective Action Plan The Finance and Budget Department will take the necessaries measurements to achieve that the single audit report of the fiscal year 2022-2023 be submitted to the Federal Audit Clearinghouse in a timely manner. Implementation Date March 31, 2024 Responsible Person Mrs. Damaris Suliveres, Finance and Budget Director
Finding Reference 2022-008 Federal Agency: All Mayor Programs and Cluster Federal Program Title and ALN: Compliance Requirement: Single Audit Act Type of finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period. Cause of Condition The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect of Condition The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned Costs None Prior-Year Finding No View of Responsible Official and Planned Corrective Action Plan The Finance and Budget Department will take the necessaries measurements to achieve that the single audit report of the fiscal year 2022-2023 be submitted to the Federal Audit Clearinghouse in a timely manner. Implementation Date March 31, 2024 Responsible Person Mrs. Damaris Suliveres, Finance and Budget Director
Finding Reference 2022-008 Federal Agency: All Mayor Programs and Cluster Federal Program Title and ALN: Compliance Requirement: Single Audit Act Type of finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period. Cause of Condition The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect of Condition The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned Costs None Prior-Year Finding No View of Responsible Official and Planned Corrective Action Plan The Finance and Budget Department will take the necessaries measurements to achieve that the single audit report of the fiscal year 2022-2023 be submitted to the Federal Audit Clearinghouse in a timely manner. Implementation Date March 31, 2024 Responsible Person Mrs. Damaris Suliveres, Finance and Budget Director
Finding Reference 2022-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title and ALN: Section 8 Housing Choice Vouchers (ALN 14.871) Compliance Requirement: Reporting ? Financial Reporting (L) (MW) Type of finding: Material Weakness in Internal Control (MW), Instance of Noncompliance (NC) Statement of Condition During our audit procedures over the reporting of FASS-PH System, we noted that the Unaudited REAC report for fiscal year June 30, 2022 was not submitted. Criteria Financial Assessment Sub-system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The Uniform Financial Reporting Standards requires PHA to submit the Unaudited REAC 60 days after fiscal year end. Due to the COVID-19 Pandemic, a waiver was granted, extending the due date 60 more days (October 31, 2021) after fiscal year end. The FASS-PH system is one of HUD?s main monitoring and oversight system for the HCVP. Cause of Condition The program staff faced performance challenges due to the COVID-19 Pandemic, also the accounting records were delayed for such event. Effect of Condition The Municipality failed to submit the required REAC report within the 60 calendar days required by the regulation, which leads to the noncompliance of the reporting requirement. Recommendation We recommend to the Municipality?s management to implement proper internal controls in order to ascertain that the reports are submitted timely. Questioned Costs None Prior-Year Finding This finding is similar to prior year finding 2021-005, 2020-009 and 2019-009. View of Responsible Official and Planned Corrective Action Plan As indicated to the finding 2022-002, the Municipality uses a mechanized accounting system (SIMA), which is also used by the Section 8 Program. The accounting system contains some reports that provide reliable financial data used to prepare the unaudited REAC Report. The Section 8 Program is taking corrective action measurements addressed to achieve the timely submission of GAAP-based unaudited financial data electronically to HUD. As a part of such measurements, a new accountant has been recruited by the Program, to who was assigned the responsibility of prepare and submit, on a timely basis, the required financial information, in accordance with the guides established by HUD. Also, the Central Accounting Department have established a working sheet to be used as model by the accountant to collect and organize financial information to be used in the preparation of required financial reports. Implementation Date March 31, 2024 Responsible Person Mr. Job Bonilla, Federal Program Director
Finding Reference 2022-005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title and ALN: Section 8 Housing Choice Vouchers (ALN 14.871) Compliance Requirement: Accounting Records ? Financial Reporting (L) (MW) Type of finding: Material Weakness in Internal Control (MW), Instance of Noncompliance (NC) Statement of Condition During our audit, we noted that the Program did not maintain an adequate set of accounting records for the Section 8 Housing Choice Vouchers to fairly present the financial position of the program and results of its operations. Criteria 24 CFR Subpart C, Part 85.20 (b) (2) states that the grantees and sub grantees must maintain records which adequately identify the source and application of funds, provided for financially-assisted activities. These records must contain information pertaining to grant or sub grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures, and income. 24 CFR Subpart D Section 982.158 (a) established that the PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be in the form required by HUD, including requirements governing computerized or electronic forms or record-keeping. The municipality must comply with the financial reporting requirements in 24 CFR part 5, subpart K. The financial management system of other grantees and sub-grantees must meet the following standards: ? Financial reporting: Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. ? Accounting records: Grantees and sub-grantees must maintain records which adequately identify the source and application of funds provided for financially-assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures, and income. Cause of Condition Adequate internal control and proper monitoring procedures do not exist to ensure the maintenance of complete set of accounting records as required by the Program?s regulations and grant agreement. Also, the accounting personnel does not possess the adequate training to ensure a proper recognition of the Program?s financial transactions. Effect of Condition The Program?s accounting system did not provide updated and complete financial information that present the financial position and the result of operations and the change in fund balances. Such information is necessary to take management decisions. In addition, the Program?s reports related to federal funding may be misleading for internal management decision making and for the reliability of external financial reporting. Recommendation Management should take necessary steps to establish and maintaining proper internal controls and periodic monitoring procedures to ensure the correct recognition of the Program?s financial and budgetary transactions in a complete set of accounting records, using the double-entry system. The Program must give financial training to the personnel in charge of the accounting record-keeping and preparation of the financial reports to ascertain that: (1) the accounting system complies with state and federal laws, (2) all the transactions related to assets, liabilities, revenues and expenditures is recorded and reconciled in a timely manner. Questioned Costs None Prior-Year Finding This finding is similar to prior year finding 2020-008 and 2019-008. View of Responsible Official and Planned Corrective Action Plan The Department of Finance and Budget of the Municipality establish a new monitoring procedure for the preparation and authorization of journal entries to each transaction related to assets, liabilities, revenues and expenditures. Also, the Section 8 Program will give financial training to the personnel in charge of the accounting record-keeping and preparation of the financial reports in order to make sure that the accounting system complies with state and federal laws. Implementation Date March 31, 2024 Responsible Person Mr. Job Bonilla, Federal Program Director
Finding Reference 2022-006 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title and ALN: Section 8 Housing Choice Vouchers (ALN 14.871) Compliance Requirement: Special Test ? Rolling Forward Equity Balances Type of finding: Material Weakness in Internal Control (MW), Instance of Noncompliance (NC) Statement of Condition As part of our audit procedures over the monthly submitted reports, Voucher Management System (VMS), we required evidence of how the Administrative Fee Equity and HAP Equity were calculated. The accountant did not provide a monthly detail that reconciled with the information submitted in the VMS. In addition, the amounts presented in the VMS at June 30, 2022, do not reconcile with the amounts presented in the Financial Data Schedule (FDS). Criteria 24 CFR 982.158 (a) states that the PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be form required by HUD, including requirements governing computerized or electronic forms of record-keeping. The must comply with the financial reporting requirements in 24 CFR Part 5, Subpart H. Cause of Condition The program accountants do not reconcile the HAP and Administrative Fee Equity balances monthly. Effect of Condition The Municipality did not have proper accounting records to allow them maintain complete and accurate to detect and correct accounting errors in a timely manner. Recommendation We recommend management to prepare the bank conciliations timely, and reconcile on a monthly basis the HAP and Administrative Fee equity balances and document it. Questioned Costs None Prior-Year Finding This finding is similar to prior year finding 2021-007 and 2020-010. View of Responsible Official and Planned Corrective Action Plan Corrective action has been taken consisting in the timely preparation of the bank conciliations. However, the corrective actions needed to evidence the HAP and Administrative Fee equity balances calculation will be taken by the Municipal Finance Office and the Program Accountants. Also, adequate measurements addressed to reconcile the VMS with the Financial Data Schedule (FDS) will be taken. Implementation Date March 31, 2024 Responsible Person Mr. Job Bonilla, Federal Program Director
Finding Reference 2022-008 Federal Agency: All Mayor Programs and Cluster Federal Program Title and ALN: Compliance Requirement: Single Audit Act Type of finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period. Cause of Condition The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect of Condition The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned Costs None Prior-Year Finding No View of Responsible Official and Planned Corrective Action Plan The Finance and Budget Department will take the necessaries measurements to achieve that the single audit report of the fiscal year 2022-2023 be submitted to the Federal Audit Clearinghouse in a timely manner. Implementation Date March 31, 2024 Responsible Person Mrs. Damaris Suliveres, Finance and Budget Director
Finding Reference 2022-008 Federal Agency: All Mayor Programs and Cluster Federal Program Title and ALN: Compliance Requirement: Single Audit Act Type of finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period. Cause of Condition The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect of Condition The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned Costs None Prior-Year Finding No View of Responsible Official and Planned Corrective Action Plan The Finance and Budget Department will take the necessaries measurements to achieve that the single audit report of the fiscal year 2022-2023 be submitted to the Federal Audit Clearinghouse in a timely manner. Implementation Date March 31, 2024 Responsible Person Mrs. Damaris Suliveres, Finance and Budget Director