Audit 348997

FY End
2023-06-30
Total Expended
$10.07M
Findings
12
Programs
2
Year: 2023 Accepted: 2025-03-27
Auditor: Rsm Puerto Rico

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
537963 2023-001 Material Weakness - B
537964 2023-002 Material Weakness - F
537965 2023-003 Material Weakness - P
537966 2023-004 - - L
537967 2023-005 Significant Deficiency - L
537968 2023-006 Significant Deficiency Yes L
1114405 2023-001 Material Weakness - B
1114406 2023-002 Material Weakness - F
1114407 2023-003 Material Weakness - P
1114408 2023-004 - - L
1114409 2023-005 Significant Deficiency - L
1114410 2023-006 Significant Deficiency Yes L

Programs

Contacts

Name Title Type
MKN8N5EJRTD5 Norberto Perez O'Neill Auditee
7877223309 Norma Vazquez Rodriguez Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 1. The financial transactions are recorded by the Authority in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. 2. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 3. 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. De Minimis Rate Used: N Rate Explanation: The Authority does not use the de minimis rate. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grants activity of the Puerto Rico Convention Center District Authority (the “Authority”), for the year ended June 30, 2023. The information in the 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 (the “Uniform Guidance”).
Title: Summary of Significant Accounting Policies Accounting Policies: 1. The financial transactions are recorded by the Authority in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. 2. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 3. 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. De Minimis Rate Used: N Rate Explanation: The Authority does not use the de minimis rate. The Schedule is prepared from the Authority’s accounting records and is not intended to present its financial position or the results of its operations. The financial transactions are recorded by the Authority in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. 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.
Title: Federal Assistance Listing Numbers (“FALN”) Accounting Policies: 1. The financial transactions are recorded by the Authority in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. 2. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 3. 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. De Minimis Rate Used: N Rate Explanation: The Authority does not use the de minimis rate. The FALN numbers included in the Schedule are determined based on the program name, review of grant contract information and the assistance listings in the System for Award Management (SAM.gov) website. FALN numbers are presented for those programs for which such numbers are available.
Title: Major Federal Programs Accounting Policies: 1. The financial transactions are recorded by the Authority in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. 2. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 3. 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. De Minimis Rate Used: N Rate Explanation: The Authority does not use the de minimis rate. Major programs are identified in the summary of auditors’ results section in the Schedule of Findings and Questioned Costs. Federal programs are presented by federal agency.
Title: Indirect Cost Accounting Policies: 1. The financial transactions are recorded by the Authority in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. 2. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 3. 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. De Minimis Rate Used: N Rate Explanation: The Authority does not use the de minimis rate. The Authority has not used the 10% de minimis indirect cost rate.

Finding Details

During the year ended June 30, 2023, management identified certain errors related to a net overstatement of revenue from the American Rescue Plan Act (ARPA) grants that impact the Authority’s previously issued financial statement.
During the year ended June 30, 2023, management identified certain errors related to the discount rate used to measure lease receivables and deferred inflows of resources related to leases, in connection with the implementation of GASB Statement No. 87 Leases that impacted the Authority’s previously issued financial statements.
There is a lack of segregation of duties surrounding the creation, approval and recording of manual journal entries.
The Authority did not submit the required data collection form and reporting package for the year ended June 30, 2023, within the required period.
The Authority did not submit one (1) of the twenty-three (23) required financial reports for the following dates: Bi-weekly report of July 15, 2022.
The Authority did not submit on time nine (9) of the twenty-three (23) required financial reports
During the year ended June 30, 2023, management identified certain errors related to a net overstatement of revenue from the American Rescue Plan Act (ARPA) grants that impact the Authority’s previously issued financial statement.
During the year ended June 30, 2023, management identified certain errors related to the discount rate used to measure lease receivables and deferred inflows of resources related to leases, in connection with the implementation of GASB Statement No. 87 Leases that impacted the Authority’s previously issued financial statements.
There is a lack of segregation of duties surrounding the creation, approval and recording of manual journal entries.
The Authority did not submit the required data collection form and reporting package for the year ended June 30, 2023, within the required period.
The Authority did not submit one (1) of the twenty-three (23) required financial reports for the following dates: Bi-weekly report of July 15, 2022.
The Authority did not submit on time nine (9) of the twenty-three (23) required financial reports