FAC Explorer

Audit 354662

FY End
2023-06-30
Total Expended
$8.40M
Findings
8
Programs
13
Organization: Municipality of Lajas (PR)
Year: 2023 Accepted: 2025-04-25
Auditor: Aquino De Cordova LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
555949 2023-002 Material Weakness Yes L
555950 2023-002 Material Weakness Yes L
555951 2023-002 Material Weakness Yes L
555952 2023-002 Material Weakness Yes L
1132391 2023-002 Material Weakness Yes L
1132392 2023-002 Material Weakness Yes L
1132393 2023-002 Material Weakness Yes L
1132394 2023-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.66M Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $2.46M Yes 1
97.030 Community Disaster Loans $1.08M Yes 1
10.770 Water and Waste Grants and Loans and Loan Guarantees (section 306c) $412,546 Yes 1
93.575 Child Care and Development Block Grant $201,559 - 0
93.569 Community Services Block Grant $65,386 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $64,572 - 0
14.871 Section 8 Housing Choice Vouchers $51,587 - 0
93.053 Nutrition Services Incentive Program $34,309 - 0
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $22,537 - 0
10.558 Child and Adult Care Food Program $16,805 - 0
20.600 State and Community Highway Safety $2,474 - 0
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $39 - 0

Contacts

Name Title Type
LUCCNRKL6VD5 Ramona Pacheco MacHado Auditee
7878991450 Velvette Barnes Pico Auditor
No contacts on file

Notes to SEFA

Title: 1. 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. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent de minimis indirect cost rate allowed under the Uniform Guidance. 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, 2023. 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: 2. 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. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent de minimis 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.
Title: 3. 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. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent de minimis indirect cost rate allowed under the Uniform Guidance. The Municipality did not elect to use the ten (10) percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: 4. 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. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent de minimis 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
Title: COMMUNITY DISASTER LOANS (ASSISTANCE LISTING NUMBER 97.030) 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. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent de minimis indirect cost rate allowed under the Uniform Guidance. As reported in Note 15 to the financial statements, the Municipality had an outstanding federal loan balance as of June 30, 2023. FEMA awarded the Municipality a Community Disaster Loan (CDL) with a maximum limit amount of $5 million at 2.75%. The CDL program provide assistance to local governments to overcome a loss in revenues as a result of a natural disaster, and in order to provide funds to continue its governmental operational functions. Neither principal nor interest payments are required to be paid until the CDL maturity. The terms of the CDL provide, as a condition, that the Municipality shall recover sufficient revenues to meet its operating budget after three full years next to the fiscal year in which the natural disaster occurred. In the case in which the Municipality does not recover sufficient revenues, the repayment of the whole or part of the CDL might be cancelled by the Federal Government. In June 2018 and June 2021, FEMA issued to the Municipality a promissory note of $3,090,052 and $2,613,301 respectively for financial assistance under the CDL.

Finding Details

Finding 2023-002
FINDING NUMBER 2023-002 REQUIREMENT REPORTING TYPE OF FINDING MATERIAL WEAKNESS CONDITION The Single Audit Report for the fiscal year ended June 30, 2023, of the Municipality with due date of March 31, 2024 was submitted after the 11 months deadline. The Single Audit related to such a period was completed after 11-month deadline. CRITERIA Public Law 104-156, known as the Single Audit Act, section 7502 (h) (1) and (2)(B) establish that the non-Federal Organization shall transmit the reporting package, which shall include the non-Federal Organization’s financial statements, schedule of expenditures of Federal awards, corrective action plan defined under subsection (i), and auditor’s reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor’s report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504, when the 9-month timeframe would place an undue burden on the non-Federal Organization. CAUSE The municipality did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the municipality in the due date established by the Single Audit Act. EFFECT Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. QUESTIONED COST None RECOMMENDATION The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9-month deadline. Finding represents a significant problem. The municipality will accelerate the SECTION III – FEDERAL AWARDS FINDING AND QUESTIONED COSTS – (CONTINUED) FINDING NUMBER 2023-002 (CONTINUED) process to contract auditors to carry out the audit and submit the report on time. PRIOR YEAR FINDING This finding is a prior year finding identified as 2022-002. VIEWS OF RESPONSIBLE The Municipality will take all necessary administrative measures to OFFICIALS AND PLANNED promptly address and correct the situation. I will instruct the Finance CORRECTIVE ACTION Department to submit all required financial information promptly to our financial consultant and external auditor to meet the deadline for submitting the Single Audit Report for the year 2024 Responsible Officials Ramona Pacheco Machado Estimated Completion Date April 30, 2025
Finding 2023-002
FINDING NUMBER 2023-002 REQUIREMENT REPORTING TYPE OF FINDING MATERIAL WEAKNESS CONDITION The Single Audit Report for the fiscal year ended June 30, 2023, of the Municipality with due date of March 31, 2024 was submitted after the 11 months deadline. The Single Audit related to such a period was completed after 11-month deadline. CRITERIA Public Law 104-156, known as the Single Audit Act, section 7502 (h) (1) and (2)(B) establish that the non-Federal Organization shall transmit the reporting package, which shall include the non-Federal Organization’s financial statements, schedule of expenditures of Federal awards, corrective action plan defined under subsection (i), and auditor’s reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor’s report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504, when the 9-month timeframe would place an undue burden on the non-Federal Organization. CAUSE The municipality did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the municipality in the due date established by the Single Audit Act. EFFECT Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. QUESTIONED COST None RECOMMENDATION The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9-month deadline. Finding represents a significant problem. The municipality will accelerate the SECTION III – FEDERAL AWARDS FINDING AND QUESTIONED COSTS – (CONTINUED) FINDING NUMBER 2023-002 (CONTINUED) process to contract auditors to carry out the audit and submit the report on time. PRIOR YEAR FINDING This finding is a prior year finding identified as 2022-002. VIEWS OF RESPONSIBLE The Municipality will take all necessary administrative measures to OFFICIALS AND PLANNED promptly address and correct the situation. I will instruct the Finance CORRECTIVE ACTION Department to submit all required financial information promptly to our financial consultant and external auditor to meet the deadline for submitting the Single Audit Report for the year 2024 Responsible Officials Ramona Pacheco Machado Estimated Completion Date April 30, 2025
Finding 2023-002
FINDING NUMBER 2023-002 REQUIREMENT REPORTING TYPE OF FINDING MATERIAL WEAKNESS CONDITION The Single Audit Report for the fiscal year ended June 30, 2023, of the Municipality with due date of March 31, 2024 was submitted after the 11 months deadline. The Single Audit related to such a period was completed after 11-month deadline. CRITERIA Public Law 104-156, known as the Single Audit Act, section 7502 (h) (1) and (2)(B) establish that the non-Federal Organization shall transmit the reporting package, which shall include the non-Federal Organization’s financial statements, schedule of expenditures of Federal awards, corrective action plan defined under subsection (i), and auditor’s reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor’s report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504, when the 9-month timeframe would place an undue burden on the non-Federal Organization. CAUSE The municipality did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the municipality in the due date established by the Single Audit Act. EFFECT Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. QUESTIONED COST None RECOMMENDATION The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9-month deadline. Finding represents a significant problem. The municipality will accelerate the SECTION III – FEDERAL AWARDS FINDING AND QUESTIONED COSTS – (CONTINUED) FINDING NUMBER 2023-002 (CONTINUED) process to contract auditors to carry out the audit and submit the report on time. PRIOR YEAR FINDING This finding is a prior year finding identified as 2022-002. VIEWS OF RESPONSIBLE The Municipality will take all necessary administrative measures to OFFICIALS AND PLANNED promptly address and correct the situation. I will instruct the Finance CORRECTIVE ACTION Department to submit all required financial information promptly to our financial consultant and external auditor to meet the deadline for submitting the Single Audit Report for the year 2024 Responsible Officials Ramona Pacheco Machado Estimated Completion Date April 30, 2025
Finding 2023-002
FINDING NUMBER 2023-002 REQUIREMENT REPORTING TYPE OF FINDING MATERIAL WEAKNESS CONDITION The Single Audit Report for the fiscal year ended June 30, 2023, of the Municipality with due date of March 31, 2024 was submitted after the 11 months deadline. The Single Audit related to such a period was completed after 11-month deadline. CRITERIA Public Law 104-156, known as the Single Audit Act, section 7502 (h) (1) and (2)(B) establish that the non-Federal Organization shall transmit the reporting package, which shall include the non-Federal Organization’s financial statements, schedule of expenditures of Federal awards, corrective action plan defined under subsection (i), and auditor’s reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor’s report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504, when the 9-month timeframe would place an undue burden on the non-Federal Organization. CAUSE The municipality did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the municipality in the due date established by the Single Audit Act. EFFECT Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. QUESTIONED COST None RECOMMENDATION The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9-month deadline. Finding represents a significant problem. The municipality will accelerate the SECTION III – FEDERAL AWARDS FINDING AND QUESTIONED COSTS – (CONTINUED) FINDING NUMBER 2023-002 (CONTINUED) process to contract auditors to carry out the audit and submit the report on time. PRIOR YEAR FINDING This finding is a prior year finding identified as 2022-002. VIEWS OF RESPONSIBLE The Municipality will take all necessary administrative measures to OFFICIALS AND PLANNED promptly address and correct the situation. I will instruct the Finance CORRECTIVE ACTION Department to submit all required financial information promptly to our financial consultant and external auditor to meet the deadline for submitting the Single Audit Report for the year 2024 Responsible Officials Ramona Pacheco Machado Estimated Completion Date April 30, 2025
Finding 2023-002
FINDING NUMBER 2023-002 REQUIREMENT REPORTING TYPE OF FINDING MATERIAL WEAKNESS CONDITION The Single Audit Report for the fiscal year ended June 30, 2023, of the Municipality with due date of March 31, 2024 was submitted after the 11 months deadline. The Single Audit related to such a period was completed after 11-month deadline. CRITERIA Public Law 104-156, known as the Single Audit Act, section 7502 (h) (1) and (2)(B) establish that the non-Federal Organization shall transmit the reporting package, which shall include the non-Federal Organization’s financial statements, schedule of expenditures of Federal awards, corrective action plan defined under subsection (i), and auditor’s reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor’s report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504, when the 9-month timeframe would place an undue burden on the non-Federal Organization. CAUSE The municipality did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the municipality in the due date established by the Single Audit Act. EFFECT Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. QUESTIONED COST None RECOMMENDATION The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9-month deadline. Finding represents a significant problem. The municipality will accelerate the SECTION III – FEDERAL AWARDS FINDING AND QUESTIONED COSTS – (CONTINUED) FINDING NUMBER 2023-002 (CONTINUED) process to contract auditors to carry out the audit and submit the report on time. PRIOR YEAR FINDING This finding is a prior year finding identified as 2022-002. VIEWS OF RESPONSIBLE The Municipality will take all necessary administrative measures to OFFICIALS AND PLANNED promptly address and correct the situation. I will instruct the Finance CORRECTIVE ACTION Department to submit all required financial information promptly to our financial consultant and external auditor to meet the deadline for submitting the Single Audit Report for the year 2024 Responsible Officials Ramona Pacheco Machado Estimated Completion Date April 30, 2025
Finding 2023-002
FINDING NUMBER 2023-002 REQUIREMENT REPORTING TYPE OF FINDING MATERIAL WEAKNESS CONDITION The Single Audit Report for the fiscal year ended June 30, 2023, of the Municipality with due date of March 31, 2024 was submitted after the 11 months deadline. The Single Audit related to such a period was completed after 11-month deadline. CRITERIA Public Law 104-156, known as the Single Audit Act, section 7502 (h) (1) and (2)(B) establish that the non-Federal Organization shall transmit the reporting package, which shall include the non-Federal Organization’s financial statements, schedule of expenditures of Federal awards, corrective action plan defined under subsection (i), and auditor’s reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor’s report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504, when the 9-month timeframe would place an undue burden on the non-Federal Organization. CAUSE The municipality did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the municipality in the due date established by the Single Audit Act. EFFECT Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. QUESTIONED COST None RECOMMENDATION The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9-month deadline. Finding represents a significant problem. The municipality will accelerate the SECTION III – FEDERAL AWARDS FINDING AND QUESTIONED COSTS – (CONTINUED) FINDING NUMBER 2023-002 (CONTINUED) process to contract auditors to carry out the audit and submit the report on time. PRIOR YEAR FINDING This finding is a prior year finding identified as 2022-002. VIEWS OF RESPONSIBLE The Municipality will take all necessary administrative measures to OFFICIALS AND PLANNED promptly address and correct the situation. I will instruct the Finance CORRECTIVE ACTION Department to submit all required financial information promptly to our financial consultant and external auditor to meet the deadline for submitting the Single Audit Report for the year 2024 Responsible Officials Ramona Pacheco Machado Estimated Completion Date April 30, 2025
Finding 2023-002
FINDING NUMBER 2023-002 REQUIREMENT REPORTING TYPE OF FINDING MATERIAL WEAKNESS CONDITION The Single Audit Report for the fiscal year ended June 30, 2023, of the Municipality with due date of March 31, 2024 was submitted after the 11 months deadline. The Single Audit related to such a period was completed after 11-month deadline. CRITERIA Public Law 104-156, known as the Single Audit Act, section 7502 (h) (1) and (2)(B) establish that the non-Federal Organization shall transmit the reporting package, which shall include the non-Federal Organization’s financial statements, schedule of expenditures of Federal awards, corrective action plan defined under subsection (i), and auditor’s reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor’s report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504, when the 9-month timeframe would place an undue burden on the non-Federal Organization. CAUSE The municipality did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the municipality in the due date established by the Single Audit Act. EFFECT Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. QUESTIONED COST None RECOMMENDATION The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9-month deadline. Finding represents a significant problem. The municipality will accelerate the SECTION III – FEDERAL AWARDS FINDING AND QUESTIONED COSTS – (CONTINUED) FINDING NUMBER 2023-002 (CONTINUED) process to contract auditors to carry out the audit and submit the report on time. PRIOR YEAR FINDING This finding is a prior year finding identified as 2022-002. VIEWS OF RESPONSIBLE The Municipality will take all necessary administrative measures to OFFICIALS AND PLANNED promptly address and correct the situation. I will instruct the Finance CORRECTIVE ACTION Department to submit all required financial information promptly to our financial consultant and external auditor to meet the deadline for submitting the Single Audit Report for the year 2024 Responsible Officials Ramona Pacheco Machado Estimated Completion Date April 30, 2025
Finding 2023-002
FINDING NUMBER 2023-002 REQUIREMENT REPORTING TYPE OF FINDING MATERIAL WEAKNESS CONDITION The Single Audit Report for the fiscal year ended June 30, 2023, of the Municipality with due date of March 31, 2024 was submitted after the 11 months deadline. The Single Audit related to such a period was completed after 11-month deadline. CRITERIA Public Law 104-156, known as the Single Audit Act, section 7502 (h) (1) and (2)(B) establish that the non-Federal Organization shall transmit the reporting package, which shall include the non-Federal Organization’s financial statements, schedule of expenditures of Federal awards, corrective action plan defined under subsection (i), and auditor’s reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor’s report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504, when the 9-month timeframe would place an undue burden on the non-Federal Organization. CAUSE The municipality did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the municipality in the due date established by the Single Audit Act. EFFECT Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. QUESTIONED COST None RECOMMENDATION The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9-month deadline. Finding represents a significant problem. The municipality will accelerate the SECTION III – FEDERAL AWARDS FINDING AND QUESTIONED COSTS – (CONTINUED) FINDING NUMBER 2023-002 (CONTINUED) process to contract auditors to carry out the audit and submit the report on time. PRIOR YEAR FINDING This finding is a prior year finding identified as 2022-002. VIEWS OF RESPONSIBLE The Municipality will take all necessary administrative measures to OFFICIALS AND PLANNED promptly address and correct the situation. I will instruct the Finance CORRECTIVE ACTION Department to submit all required financial information promptly to our financial consultant and external auditor to meet the deadline for submitting the Single Audit Report for the year 2024 Responsible Officials Ramona Pacheco Machado Estimated Completion Date April 30, 2025