FAC Explorer

Audit 342549

FY End
2024-06-30
Total Expended
$1.39M
Findings
6
Programs
9
Organization: Fundacion De Desarollo Comunal De Puerto Rico (PR)
Year: 2024 Accepted: 2025-02-14
Auditor: Velez CPA Group

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
523289 2024-001 Significant Deficiency - L
523290 2024-002 Significant Deficiency - L
523291 2024-002 Significant Deficiency - L
1099731 2024-001 Significant Deficiency - L
1099732 2024-002 Significant Deficiency - L
1099733 2024-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $311,281 - 0
93.575 Child Care and Development Block Grant $288,742 Yes 1
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $186,475 - 0
14.231 Emergency Solutions Grant Program $109,606 Yes 1
14.241 Housing Opportunities for Persons with Aids $49,775 - 0
14.195 Section 8 Housing Assistance Payments Program $42,133 - 0
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $31,701 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $25,296 - 0
10.558 Child and Adult Care Food Program $9,282 - 0

Contacts

Name Title Type
EXNZDQXDCTJ8 Carmen Matos Auditee
7874771656 Jose Velez Auditor
No contacts on file

Notes to SEFA

Title: 1)     Basis of presentation Accounting Policies: Please refer to form tab De Minimis Rate Used: N Rate Explanation: The entity is not requesting indirecto costs The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal awards activities of FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) (the Corporation) 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 the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Corporation., it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation.
Title: 2) Summary of significant accounting policies Accounting Policies: Please refer to form tab De Minimis Rate Used: N Rate Explanation: The entity is not requesting indirecto costs Expenditures reported in 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 allowed or are limited as to reimbursement. Negative amounts shown in the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Additional policies are the following: (a) The financial transactions are recorded by the Corporation in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. (b) Expenditures are recognized in the accounting period in which the liability is incurred, if measurable, or when paid, whichever occurs first.
Title: 3) Assistance listing number Accounting Policies: Please refer to form tab De Minimis Rate Used: N Rate Explanation: The entity is not requesting indirecto costs The assistance listing numbers included in the Schedule are determined based on the program’s name, review of grant contract information and the Office of Management and Budget. The assistance listing number is a program identification number, whose first two digits identify the federal department or agency that administers the program, and the last three numbers are assigned by numerical sequence.
Title: 4) Major federal programs Accounting Policies: Please refer to form tab De Minimis Rate Used: N Rate Explanation: The entity is not requesting indirecto costs Major programs are identified in the Summary of Audits Results Section of the Schedules of Findings and Questioned Cost.
Title: 5) Distinction between Type A and Type B Programs Accounting Policies: Please refer to form tab De Minimis Rate Used: N Rate Explanation: The entity is not requesting indirecto costs The dollar threshold for Type A and Type B programs amounted to $ 750,00 and $187,500 respectively.
Title: 6) Indirect costs Accounting Policies: Please refer to form tab De Minimis Rate Used: N Rate Explanation: The entity is not requesting indirecto costs The Corporation does not have a federally negotiated indirect cost rate applicable to the programs and therefore there is no election to the 10 percent de minims cost rate as defined in 2 CFR 200.414.
Title: 7) Federal awards expenditure reconciliation Accounting Policies: Please refer to form tab De Minimis Rate Used: N Rate Explanation: The entity is not requesting indirecto costs Reconciliation of total federal awards expenditures per Schedule of Expenditures of Federal Awards and Statement of Activities is as follows:

Finding Details

Finding 2024-001
Condition: During our audit procedures, we noted that the following financial reports were not submitted on time. Criteria: As stated in the award terms 2.CFR 200.328, financial reports are due on a quarterly basis. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting on its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Finding 2024-002
Condition: During our audit procedures, we noted that 1 out of 4 vendors files did not have the completely required documentation in the vendor’s permanent file. Criteria: 2.CFR 200.318 (General Procurement Standards), outlines the requirements for procurement processes, including the need for proper vendor documentation. Cause: The primary cause attributed to the missing documentation finding can be identified as a deficiency in verification process within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately training its accounting department, thereby impeding its ability to fulfill documentation requirements. Effect: Missing the required documentation can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting on its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols in the review of required documentations to ensure compliance with Federal awarding agency requirements. This includes training and defining roles and responsibilities within the finance and accounting team.
Finding 2024-002
Condition: During our audit procedures, we noted that 1 out of 4 vendors files did not have the completely required documentation in the vendor’s permanent file. Criteria: 2.CFR 200.318 (General Procurement Standards), outlines the requirements for procurement processes, including the need for proper vendor documentation. Cause: The primary cause attributed to the missing documentation finding can be identified as a deficiency in verification process within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately training its accounting department, thereby impeding its ability to fulfill documentation requirements. Effect: Missing the required documentation can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting on its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols in the review of required documentations to ensure compliance with Federal awarding agency requirements. This includes training and defining roles and responsibilities within the finance and accounting team.
Finding 2024-001
Condition: During our audit procedures, we noted that the following financial reports were not submitted on time. Criteria: As stated in the award terms 2.CFR 200.328, financial reports are due on a quarterly basis. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting on its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Finding 2024-002
Condition: During our audit procedures, we noted that 1 out of 4 vendors files did not have the completely required documentation in the vendor’s permanent file. Criteria: 2.CFR 200.318 (General Procurement Standards), outlines the requirements for procurement processes, including the need for proper vendor documentation. Cause: The primary cause attributed to the missing documentation finding can be identified as a deficiency in verification process within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately training its accounting department, thereby impeding its ability to fulfill documentation requirements. Effect: Missing the required documentation can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting on its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols in the review of required documentations to ensure compliance with Federal awarding agency requirements. This includes training and defining roles and responsibilities within the finance and accounting team.
Finding 2024-002
Condition: During our audit procedures, we noted that 1 out of 4 vendors files did not have the completely required documentation in the vendor’s permanent file. Criteria: 2.CFR 200.318 (General Procurement Standards), outlines the requirements for procurement processes, including the need for proper vendor documentation. Cause: The primary cause attributed to the missing documentation finding can be identified as a deficiency in verification process within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately training its accounting department, thereby impeding its ability to fulfill documentation requirements. Effect: Missing the required documentation can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting on its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols in the review of required documentations to ensure compliance with Federal awarding agency requirements. This includes training and defining roles and responsibilities within the finance and accounting team.