Audit 348562

FY End
2024-06-30
Total Expended
$6.16M
Findings
2
Programs
10
Organization: Municipality of Moca (PR)
Year: 2024 Accepted: 2025-03-26

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
537307 2024-002 Significant Deficiency Yes L
1113749 2024-002 Significant Deficiency Yes L

Contacts

Name Title Type
UQEJJKL2KLE5 José G. Bosques Cruz Auditee
7878773560 CPA Marco Rivera Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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. Expenditures related to Disaster Grants – Public Assistance 97-036 are recognized when incurred and approved by the granting agency. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Municipality under programs of the federal government for the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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. Expenditures related to Disaster Grants – Public Assistance 97-036 are recognized when incurred and approved by the granting agency. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the modified 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. Expenditures related to Disaster Grants – Public Assistance 97-036 are recognized when incurred and approved by the granting agency.
Title: INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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. Expenditures related to Disaster Grants – Public Assistance 97-036 are recognized when incurred and approved by the granting agency. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance. The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance.
Title: RECONCILIATION OF EXPENDITURES PRESENTED IN THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE EXPENDITURES PRESENTED IN THE BASIC FINANCIAL STATEMENT Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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. Expenditures related to Disaster Grants – Public Assistance 97-036 are recognized when incurred and approved by the granting agency. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance. The expenditures of the schedule are included in the Municipality’s basic financial statements. The reconciliation of expenditures in the basic financial statements to the Schedule of Expenditures of Federal Awards is as follows: Total federal expenditures per schedule $ 6,160,776 within: General fund $ 159,408 Huracan Maria fund 998,779 CDBG-DR Fund 642,911 ARPA fund 625,565 Other governmental funds 3,734,113 Total $ 6,160,776
Title: OUTSTANDING LOANS OF FEDERAL FUNDS Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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. Expenditures related to Disaster Grants – Public Assistance 97-036 are recognized when incurred and approved by the granting agency. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance. The following is a summary of outstanding loans at cost by Assistance Listing Number as of June 30, 2024. Federal funded loans provided under these programs are included as expenditure on the schedule of expenditure of Federal Awards. Per Uniform Guidance, loans proceed that were received and expended in prior years are not considered federal awards expended (and thus not shown on the schedule of expenditures of federal awards) as those loans do not include continuing compliance requirements other than repayment of the loans. The Municipality is required to identify in the notes to the schedule of expenditures awards the balances outstanding at the end of the period. Assistance Listing Amount Number Outstanding Community Facilities Loans and Grants 10.766 $ 3,000,00

Finding Details

Finding: 2024-002 Federal Agency: U.S. Department of Treasury Pass-through Agency: N/A Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Compliance Requirement: Reporting Type of Finding: Significant Deficiency Responsible Official: Verónica Hernández, Finance Director Prior year finding: 2023-002 Condition The required Quater Project and Expenditure (P & E) Report was not submitted. The report was required for the quarter period ended September 30, 2023, and was due on October 31, 2023. Criteria 2 CFR 200.328 and 31 CFR section 35.4(c) required financial and performance reporting information. The information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. Context We request the report submitted during the fiscal year to be audited and observed that the Quarter report ended in September 2023 was not submitted. Cause The Municipality failed to submission of the required report on time due to lack of knowledge of requisites and instructions about the completion of the report. Effect The Municipality did not comply with compliance requirements of the Program. It could affect the monitories of the Federal Awarding Agency assign the funds and affect the program outcomes. Questioned Costs None. Recommendation The Municipality should maintain the schedule of due dates of the required reports of each federal program in order to comply with the required submissions to the federal awarding agencies. Also, they had to submit the quarter report in order to complied with the requirements.
Finding: 2024-002 Federal Agency: U.S. Department of Treasury Pass-through Agency: N/A Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Compliance Requirement: Reporting Type of Finding: Significant Deficiency Responsible Official: Verónica Hernández, Finance Director Prior year finding: 2023-002 Condition The required Quater Project and Expenditure (P & E) Report was not submitted. The report was required for the quarter period ended September 30, 2023, and was due on October 31, 2023. Criteria 2 CFR 200.328 and 31 CFR section 35.4(c) required financial and performance reporting information. The information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. Context We request the report submitted during the fiscal year to be audited and observed that the Quarter report ended in September 2023 was not submitted. Cause The Municipality failed to submission of the required report on time due to lack of knowledge of requisites and instructions about the completion of the report. Effect The Municipality did not comply with compliance requirements of the Program. It could affect the monitories of the Federal Awarding Agency assign the funds and affect the program outcomes. Questioned Costs None. Recommendation The Municipality should maintain the schedule of due dates of the required reports of each federal program in order to comply with the required submissions to the federal awarding agencies. Also, they had to submit the quarter report in order to complied with the requirements.