Audit 356823

FY End
2024-06-30
Total Expended
$2.97M
Findings
4
Programs
2
Year: 2024 Accepted: 2025-05-21

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
561203 2024-001 Significant Deficiency - P
561204 2024-002 Significant Deficiency - P
1137645 2024-001 Significant Deficiency - P
1137646 2024-002 Significant Deficiency - P

Programs

Contacts

Name Title Type
T1ELHXD8SB79 Ceciliana Cabrer Auditee
7873612770 CPA Carlos De Angel Ramirez Auditor
No contacts on file

Notes to SEFA

Title: MAJOR FEDERAL PROGRAMS Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal award (the “Schedule”) includes the federal awards activity of Hogar Manuel Mediavilla Negrón, Inc., (hereinafter Organization), 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 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. The Schedule is prepared from the Organization’s accounting records and is not intended to present its financial position or the results of its operations. 2. The financial transactions are recorded by the Organization in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. 3. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. De Minimis Rate Used: N Rate Explanation: N/A Major program is identified in the summary of auditors’ results section in the Schedule of Findings and Questioned Costs. Federal program is presented by federal agency.
Title: SCHEDULE NOT IN AGREEMENT WITH OTHER FEDERAL AWARDS REPORTING Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal award (the “Schedule”) includes the federal awards activity of Hogar Manuel Mediavilla Negrón, Inc., (hereinafter Organization), 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 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. The Schedule is prepared from the Organization’s accounting records and is not intended to present its financial position or the results of its operations. 2. The financial transactions are recorded by the Organization in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. 3. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. De Minimis Rate Used: N Rate Explanation: N/A The information included in the Schedule may not fully agree with other federal awards reports, submitted directly to federal grantor agency because, among other reasons, the award report may (a) be prepared for a different fiscal period and (b) include cumulative data (from prior years) rather than data from the current year only.
Title: ASSITANCE LISTING NUMBER Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal award (the “Schedule”) includes the federal awards activity of Hogar Manuel Mediavilla Negrón, Inc., (hereinafter Organization), 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 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. The Schedule is prepared from the Organization’s accounting records and is not intended to present its financial position or the results of its operations. 2. The financial transactions are recorded by the Organization in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. 3. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. De Minimis Rate Used: N Rate Explanation: N/A The Assistance Listing Number is a program identification number presented for programs in which such numbers are available. The first two digits identify the federal department or agency that administers the program, and the last three numbers are assigned by numerical sequence
Title: RELATIONSHIP TO THE STATEMENT OF ACTIVITIES Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal award (the “Schedule”) includes the federal awards activity of Hogar Manuel Mediavilla Negrón, Inc., (hereinafter Organization), 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 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. The Schedule is prepared from the Organization’s accounting records and is not intended to present its financial position or the results of its operations. 2. The financial transactions are recorded by the Organization in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. 3. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. De Minimis Rate Used: N Rate Explanation: N/A The reconciliation of expenses in the Statement of Activities and Changes in Net Assets to the total expenditures of federal awards in the Schedule of Expenditures of Federal Awards is as follows: Expenses per Statements of Activities and Changes in Net Assets $ 7,845,625 Less: Unrestricted Funds Expenditures (Non-Federal) as follows: Rehabilitation Project Costs GRCE (2,224,469) Bad Debt (5,488,770) Other (132,386) Plus: Transfer of Federal Funds to Developer 2,392,847 Expenditures recognized from FEMA 575,565 Total Expenditures of Federal Awards in the Schedule of Expenditures of Federal Awards $ 2,968,412 Less: Unrestricted Funds Expenditures (Non-Federal) (2,356,857) Pluss: Transfer of Federal Funds to Developer 3,228,501 Total Expenditures of Federal Awards in the Schedule of Expenditures of Federal Awards $ 2,392,847
Title: PASS-THROUGH AWARDS Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal award (the “Schedule”) includes the federal awards activity of Hogar Manuel Mediavilla Negrón, Inc., (hereinafter Organization), 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 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. The Schedule is prepared from the Organization’s accounting records and is not intended to present its financial position or the results of its operations. 2. The financial transactions are recorded by the Organization in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. 3. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. De Minimis Rate Used: N Rate Explanation: N/A The Organization is a subrecipient of a state governmental agencies that are identified in the Schedule. Under pass-through awards, a subrecipient is a nonfederal entity that receives a subaward from a pass-through entity to carry out part of a federal program but does not include an individual that is a beneficiary of such program. State and local government redistributions of federal awards to the Institution, known as subawards, are treated by the Institution as though they were received directly from the federal government. That is, federal awards expended as a subrecipient are subject to a single audit on the same basis as that of federal awards that are received directly. The Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the Schedule to include the name of the pass-through entity and identifying number assigned by the pass-through entity for federal awards received as a subrecipient. Pass-through entity numbers identified in the Schedule as "N/AV" are not available.
Title: GENERAL OBJECTIVES Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal award (the “Schedule”) includes the federal awards activity of Hogar Manuel Mediavilla Negrón, Inc., (hereinafter Organization), 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 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. The Schedule is prepared from the Organization’s accounting records and is not intended to present its financial position or the results of its operations. 2. The financial transactions are recorded by the Organization in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. 3. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. De Minimis Rate Used: N Rate Explanation: N/A Community Development Block Grant Program for Disaster (14.288) The Puerto Rico Community Development Block Grant Program for Disaster Recovery (CDBG-DR) is carried out to ensure decent and affordable housing opportunities, provision of services, assistance to the most vulnerable in our communities, and the expansion, and preservation of jobs. Funds for this Program come form the United States Department of Housing and Urban Development (HUD) Community Development Disaster Recovery Program to support disaster recovery activities, including reconstruction and housing development.
Title: SUBRECIPIENTS Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal award (the “Schedule”) includes the federal awards activity of Hogar Manuel Mediavilla Negrón, Inc., (hereinafter Organization), 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 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. The Schedule is prepared from the Organization’s accounting records and is not intended to present its financial position or the results of its operations. 2. The financial transactions are recorded by the Organization in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. 3. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. De Minimis Rate Used: N Rate Explanation: N/A For the year ended June 30, 2024, the Organization did not provide federal awards to any subrecipients
Title: SUBSIQUENT EVENT Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal award (the “Schedule”) includes the federal awards activity of Hogar Manuel Mediavilla Negrón, Inc., (hereinafter Organization), 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 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. The Schedule is prepared from the Organization’s accounting records and is not intended to present its financial position or the results of its operations. 2. The financial transactions are recorded by the Organization in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. 3. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. De Minimis Rate Used: N Rate Explanation: N/A On January 27, 2025, the OMB of the United States Federal Government instituted a pause (freeze) on the disbursement of federal grant and loan funds, which became effective on January 28, 2025. The extent to which the funding freeze impacts our operations, financial results, and cash flows, both current and future, will depend on future developments, which are highly uncertain and cannot be predicted with any measure of certainty or probability.

Finding Details

Finding No. 2024-001 – NONCOMPLIANCE WITH US GAAP – VARIABLE INTEREST ENTITIES (VIE) Name of Federal Agency U.S. Department of Housing and Urban Development Pass-through the Puerto Rico Housing Finance Authority Federal Program Community Development Block Grant - Disaster Recovery Assistance Listing Number 14.218 Category Internal Control Over Financial Statements Compliance Requirement None Criteria Per 2 CFR §200.302(b)(2), non-Federal entities must provide accurate, current, and complete disclosure of financial results in accordance with the terms and conditions of the Federal award. Additionally, under U.S. GAAP, Accounting Standards Codification (ASC) 810 – Consolidation requires that entities evaluate whether they hold a variable interest in another entity and, if so, determine whether that entity qualifies as a variable interest entity (VIE) and whether it should be consolidated. Failure to consolidate required VIEs results in a financial statement presentation that is not in conformity with U.S. GAAP. Condition During our audit, we noted that the Organization did not perform the required assessment under ASC 810 to determine whether two entities in which it holds variable interests, the Gladys Project and Rosario Projects, should be consolidated. As a result, the financial statements do not include the financial position and results of operations of these potentially required variable interest entities. Cause The Organization has not implemented adequate internal control procedures to ensure compliance with the accounting requirements for the identification and consolidation of VIEs as per ASC 810. Effect The failure to assess and potentially consolidate these VIEs represents a departure from U.S. GAAP and resulted in a modified (qualified) audit opinion. This may impair the users’ ability to fully understand the financial condition and results of operations of the Organization and may result in incomplete or inaccurate financial reporting to stakeholders, including federal agencies.Questioned Cost None Recommendation We recommend that the Organization establish formal procedures to identify and evaluate variable interest entities in accordance with ASC 810. Management should also obtain specialized training on consolidation principles and seek technical accounting support as needed to ensure compliance with U.S. GAAP and federal reporting requirements. Views of Responsible Officials The management of the Institution agrees with this finding. Responsible Person Ms. Ceciliana Cabrer President
inding No. 2024-002 – DATA COLLECTION FORM DUE DATES Name of Federal Agency U.S. Department of Housing and Urban Development Pass-through the Puerto Rico Housing Finance Authority Federal Program Community Development Block Grant - Disaster Recovery Assistance Listing Number 14.218 Category Compliance/Internal Control Compliance Requirement Reporting Criteria Uniform Guidance, Part 200.512 (1) established the audit, the data collection form, and the reporting package must be submitted within thirty (30) calendar days after the auditee receives the auditor's report(s) or nine months after the end of the audit period (whichever is earlier). The cognizant agency for audit or oversight agency for audit (in the absence of a cognizant agency for audit) may authorize an extension when the nine-month timeframe would place an undue burden on the auditee. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form and Single Audit reporting package were not submitted within nine (9) months after the end of the audit period. Cause and Effect Information to complete the financial statements audit procedures was not available within the required period. Data collection form and single audit report were not submitted in a timely manner as required by the Uniform Guidance. Questioned Cost None Recommendation Data collection from and single audit package shall be submitted within the required due dates. Views of Responsible Officials The management of the Institution agrees with this finding. Responsible Person Ms. Ceciliana Cabrer President
Finding No. 2024-001 – NONCOMPLIANCE WITH US GAAP – VARIABLE INTEREST ENTITIES (VIE) Name of Federal Agency U.S. Department of Housing and Urban Development Pass-through the Puerto Rico Housing Finance Authority Federal Program Community Development Block Grant - Disaster Recovery Assistance Listing Number 14.218 Category Internal Control Over Financial Statements Compliance Requirement None Criteria Per 2 CFR §200.302(b)(2), non-Federal entities must provide accurate, current, and complete disclosure of financial results in accordance with the terms and conditions of the Federal award. Additionally, under U.S. GAAP, Accounting Standards Codification (ASC) 810 – Consolidation requires that entities evaluate whether they hold a variable interest in another entity and, if so, determine whether that entity qualifies as a variable interest entity (VIE) and whether it should be consolidated. Failure to consolidate required VIEs results in a financial statement presentation that is not in conformity with U.S. GAAP. Condition During our audit, we noted that the Organization did not perform the required assessment under ASC 810 to determine whether two entities in which it holds variable interests, the Gladys Project and Rosario Projects, should be consolidated. As a result, the financial statements do not include the financial position and results of operations of these potentially required variable interest entities. Cause The Organization has not implemented adequate internal control procedures to ensure compliance with the accounting requirements for the identification and consolidation of VIEs as per ASC 810. Effect The failure to assess and potentially consolidate these VIEs represents a departure from U.S. GAAP and resulted in a modified (qualified) audit opinion. This may impair the users’ ability to fully understand the financial condition and results of operations of the Organization and may result in incomplete or inaccurate financial reporting to stakeholders, including federal agencies.Questioned Cost None Recommendation We recommend that the Organization establish formal procedures to identify and evaluate variable interest entities in accordance with ASC 810. Management should also obtain specialized training on consolidation principles and seek technical accounting support as needed to ensure compliance with U.S. GAAP and federal reporting requirements. Views of Responsible Officials The management of the Institution agrees with this finding. Responsible Person Ms. Ceciliana Cabrer President
inding No. 2024-002 – DATA COLLECTION FORM DUE DATES Name of Federal Agency U.S. Department of Housing and Urban Development Pass-through the Puerto Rico Housing Finance Authority Federal Program Community Development Block Grant - Disaster Recovery Assistance Listing Number 14.218 Category Compliance/Internal Control Compliance Requirement Reporting Criteria Uniform Guidance, Part 200.512 (1) established the audit, the data collection form, and the reporting package must be submitted within thirty (30) calendar days after the auditee receives the auditor's report(s) or nine months after the end of the audit period (whichever is earlier). The cognizant agency for audit or oversight agency for audit (in the absence of a cognizant agency for audit) may authorize an extension when the nine-month timeframe would place an undue burden on the auditee. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form and Single Audit reporting package were not submitted within nine (9) months after the end of the audit period. Cause and Effect Information to complete the financial statements audit procedures was not available within the required period. Data collection form and single audit report were not submitted in a timely manner as required by the Uniform Guidance. Questioned Cost None Recommendation Data collection from and single audit package shall be submitted within the required due dates. Views of Responsible Officials The management of the Institution agrees with this finding. Responsible Person Ms. Ceciliana Cabrer President