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Audit 339937

FY End
2022-06-30
Total Expended
$14.68M
Findings
8
Programs
8
Organization: Municipality of Morovis (PR)
Year: 2022 Accepted: 2025-01-27
Auditor: Betancourt & CO Psc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
520278 2022-004 Significant Deficiency Yes L
520279 2022-004 Significant Deficiency Yes L
520280 2022-003 Material Weakness Yes L
520281 2022-004 Significant Deficiency Yes L
1096720 2022-004 Significant Deficiency Yes L
1096721 2022-004 Significant Deficiency Yes L
1096722 2022-003 Material Weakness Yes L
1096723 2022-004 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $7.40M Yes 1
97.030 Community Disaster Loans $2.80M Yes 1
21.019 Coronavirus Relief Fund $1.56M Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.22M Yes 1
93.575 Child Care and Development Block Grant $837,927 - 0
14.871 Section 8 Housing Choice Vouchers $399,416 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $394,694 - 0
10.558 Child and Adult Care Food Program $63,952 - 0

Contacts

Name Title Type
U6G5NN9A8TT1 Grabiel Oquendo Auditee
7878622155 Mario A Betancourt-Pagan Auditor
No contacts on file

Notes to SEFA

Title: NOTE A – BASIS OF PRESENTATION Accounting Policies: MODIFIED ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: NO MINIMAL RATE The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Municipality under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR Part 200), Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this 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 Municipality, it is not intended to, and does not present, the financial position and changes in net position of the Municipality.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: MODIFIED ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: NO MINIMAL RATE Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Expenditures are recognized when the related liability is incurred, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the following programs are recognized based on other unique requirements:
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: MODIFIED ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: NO MINIMAL RATE ▪ Section 8 Housing Choice Voucher Program (HCV).
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: MODIFIED ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: NO MINIMAL RATE Expenditures are reported on a statutory basis as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy for the PHA’s fiscal period.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: MODIFIED ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: NO MINIMAL RATE ▪ Public Assistance Grants (FEMA).
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: MODIFIED ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: NO MINIMAL RATE Expenditures are recognized in the period when: (1) FEMA has approved the Project Worksheet (PW), and (2) eligible expenditures are incurred.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: MODIFIED ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: NO MINIMAL RATE ▪ Loans or Loans Guarantee Programs. Expenditures equal the value of new loans made or received during the audit period plus the beginning of the audit period balance of outstanding loans from previous years for which the federal government imposes continuing compliance requirements. For loans with no imposed continuing compliance requirements, expenditures are recognized when the related costs financed with loan proceeds are incurred.
Title: NOTE C – ASSISTANCE LISTING NUMBER AND PASS-THROUGH ENTITY IDENTIFYING NUMBER Accounting Policies: MODIFIED ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: NO MINIMAL RATE The Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five-digit number assigned in the awarding document for all federal assistance award mechanisms, including federal grants and cooperative agreements. Assistance listings are detailed public descriptions of federal programs that provide grants, loans, scholarships, insurance, and other types of assistance awards. The Sam.gov assistance listing is the publicly available online database showing all available Federally funded programs. State or local government redistributions of federal awards to the Municipality, known as “pass–through awards”, should be treated by the Municipality 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 D – INDIRECT COST RATE Accounting Policies: MODIFIED ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: NO MINIMAL RATE The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance.
Title: NOTE E – OUTSTANDING LOANS AND OTHER GRANTS Accounting Policies: MODIFIED ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: NO MINIMAL RATE Governmental Activities:
Title: NOTE E – OUTSTANDING LOANS AND OTHER GRANTS Accounting Policies: MODIFIED ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: NO MINIMAL RATE Governmental Activities:
Title: NOTE E – OUTSTANDING LOANS AND OTHER GRANTS Accounting Policies: MODIFIED ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: NO MINIMAL RATE Community Disaster Loan – Hurricane Maria (ALN No. 97.030) Federal statutes and regulations do not impose continuing compliance requirements on the outstanding balance of the loan, other than the repayment of the loan. Therefore, the outstanding balance of the loan is not included in the face of the SEFA. Program transactions for 2021-2022 year are as follows:
Title: NOTE E – OUTSTANDING LOANS AND OTHER GRANTS Accounting Policies: MODIFIED ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: NO MINIMAL RATE In accordance with the Extending Government Funding and Delivering Emergency Assistance Act (P.L. 117-43) approved by the United States Congress, the outstanding balance of principal and interest accrued of the referenced CDL as of September 30, 2021 was cancelled.

Finding Details

Finding 2022-004
The Single Audit Report for the fiscal year ended June 30, 2022 was not issued and submitted to the Federal Audit Clearinghouse within nine (9) months after the end of the audit period. Although, a waivers were approved by the OMB delaying the due date, the Data Collection Form and the reporting package were not submitted on a timely basis.
Finding 2022-004
The Single Audit Report for the fiscal year ended June 30, 2022 was not issued and submitted to the Federal Audit Clearinghouse within nine (9) months after the end of the audit period. Although, a waivers were approved by the OMB delaying the due date, the Data Collection Form and the reporting package were not submitted on a timely basis.
Finding 2022-003
The Municipality’s staff could not provide us with the officially prepared and certified reports that supported compliance with the filing or submission of reports and financial information, as required by federal award and regulatory agreements. Likewise, reconciliations were not provided between the information used to prepare the required and submitted reports with the formal information presented and accounted for in the official Municipality’s accounting system. According to an analysis of the related transactions prepared by the Municipality’s consultants for financial statements and Schedule of Expenditures of Federal Awards purposes for the fiscal year ended June 30, 2021, $1,082,613 has been expended or transferred to the general fund to cover eligible expenses under the terms allowed by the CDL grant. As a consequence of these conditions, compliance with reporting requirements established by the grantor entity, and related internal controls, could not be verified.
Finding 2022-004
The Single Audit Report for the fiscal year ended June 30, 2022 was not issued and submitted to the Federal Audit Clearinghouse within nine (9) months after the end of the audit period. Although, a waivers were approved by the OMB delaying the due date, the Data Collection Form and the reporting package were not submitted on a timely basis.
Finding 2022-004
The Single Audit Report for the fiscal year ended June 30, 2022 was not issued and submitted to the Federal Audit Clearinghouse within nine (9) months after the end of the audit period. Although, a waivers were approved by the OMB delaying the due date, the Data Collection Form and the reporting package were not submitted on a timely basis.
Finding 2022-004
The Single Audit Report for the fiscal year ended June 30, 2022 was not issued and submitted to the Federal Audit Clearinghouse within nine (9) months after the end of the audit period. Although, a waivers were approved by the OMB delaying the due date, the Data Collection Form and the reporting package were not submitted on a timely basis.
Finding 2022-003
The Municipality’s staff could not provide us with the officially prepared and certified reports that supported compliance with the filing or submission of reports and financial information, as required by federal award and regulatory agreements. Likewise, reconciliations were not provided between the information used to prepare the required and submitted reports with the formal information presented and accounted for in the official Municipality’s accounting system. According to an analysis of the related transactions prepared by the Municipality’s consultants for financial statements and Schedule of Expenditures of Federal Awards purposes for the fiscal year ended June 30, 2021, $1,082,613 has been expended or transferred to the general fund to cover eligible expenses under the terms allowed by the CDL grant. As a consequence of these conditions, compliance with reporting requirements established by the grantor entity, and related internal controls, could not be verified.
Finding 2022-004
The Single Audit Report for the fiscal year ended June 30, 2022 was not issued and submitted to the Federal Audit Clearinghouse within nine (9) months after the end of the audit period. Although, a waivers were approved by the OMB delaying the due date, the Data Collection Form and the reporting package were not submitted on a timely basis.