FAC Explorer

Audit 361653

FY End
2022-12-31
Total Expended
$921,184
Findings
4
Programs
1
Organization: Hamilton Sundstrand De Pr (PR)
Year: 2022 Accepted: 2025-07-08
Auditor: Kevane Grant Thornton

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
570630 2022-001 - Yes A
570631 2022-002 - Yes L
1147072 2022-001 - Yes A
1147073 2022-002 - Yes L

Programs

ALN Program Spent Major Findings
17.258 Wioa Adult Program $921,184 Yes 2

Contacts

Name Title Type
NGHMBM6JDU68 Himilce Hernandez Auditee
7873659152 Rosangela Raposo Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: 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 and Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, reflected in the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years De Minimis Rate Used: Y Rate Explanation: The Company elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance for the year ended December 31, 2022 The accompanying schedule of expenditures of federal awards (“the Schedule”) includes the federal award activity of Hamilton Sundstrand de Puerto Rico, Inc. ("the Company") under programs of the federal government for the year ended December 31, 2022. 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”). Because the Schedule presents only a selected portion of the operations of the Company, it is not intended to and does not present the financial position, changes in equity, or cash flows of the Company.
Title: Summary of significant accounting policies Accounting Policies: 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 and Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, reflected in the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years De Minimis Rate Used: Y Rate Explanation: The Company elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance for the year ended December 31, 2022 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 and Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, reflected in the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Matching Costs Accounting Policies: 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 and Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, reflected in the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years De Minimis Rate Used: Y Rate Explanation: The Company elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance for the year ended December 31, 2022 Matching costs, such as the nonfederal share of certain program costs, are not included in the Schedule.
Title: Indirect cost rate Accounting Policies: 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 and Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, reflected in the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years De Minimis Rate Used: Y Rate Explanation: The Company elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance for the year ended December 31, 2022 The Company elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance for the year ended December 31, 2022.
Title: Pass-through awards to subrecipients Accounting Policies: 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 and Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, reflected in the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years De Minimis Rate Used: Y Rate Explanation: The Company elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance for the year ended December 31, 2022 For the year ended December 31, 2022, there were no awards passed-through to subrecipients.

Finding Details

Finding 2022-001
Criteria: 200 CFR Subpart E Condition: As required by the grant agreement, the Company had to keep record in the employee’s file any reports from disciplinary actions against the employees that were paid under this federal grant. However, for 2 of the employees selected for testing, the Company did not keep evidence of such disciplinary actions in the employee’s file. In the other hand, as per the grant agreement, the Company must keep all documentation and records related to this federal grant following the requirements of the local government for the safekeeping of financial documents and public records, which is six (6) years, and this requirement was not met. Cause: In the case of evidence of disciplinary actions against the employee not kept in file, it was an isolated instance. In the other hand, the safekeeping of documentation related to federal grants, it was caused by the inadvertence of the Company’s management of the existence of this requirement. Effect: The Company could not provide the audit team with the disciplinary actions taken against one of the employees that was paid under this federal grant. Recommendation: The Company must obtain a good understanding of all requirements included in the grant agreement and ensure to keep evidence of compliance of such requirements for future reference and to provide evidence to any examination from the granting agency. Views of responsible officials: See Corrective Action Plan
Finding 2022-002
Criteria: 200 CFR Subpart D Condition: During our examination of the filings of the monthly programmatic reports that had to be submitted to the pass-through entity as required by the grant agreement, the Company could not provide evidence of filing for five (4) of the 12 months for the period under audit. Cause: This was caused by the fact that the reports were submitted by email, and the Company did not keep a copy of the emails sent. In the other hand, since the emails are eliminated from the Company’s server after 3 months, the Company was not able to retrieve the emails in order to evidence the filing of the reports. Effect: The Company could not provide the audit team with evidence that the reports required by the grant agreement were submitted to the pass-through entity. Recommendation: The Company must obtain a good understanding of all requirements included in the grant agreement, and ensure to keep evidence of compliance of such requirements for future reference and to provide evidence to any examination from the granting agency. Views of responsible officials: See Corrective Action Plan
Finding 2022-001
Criteria: 200 CFR Subpart E Condition: As required by the grant agreement, the Company had to keep record in the employee’s file any reports from disciplinary actions against the employees that were paid under this federal grant. However, for 2 of the employees selected for testing, the Company did not keep evidence of such disciplinary actions in the employee’s file. In the other hand, as per the grant agreement, the Company must keep all documentation and records related to this federal grant following the requirements of the local government for the safekeeping of financial documents and public records, which is six (6) years, and this requirement was not met. Cause: In the case of evidence of disciplinary actions against the employee not kept in file, it was an isolated instance. In the other hand, the safekeeping of documentation related to federal grants, it was caused by the inadvertence of the Company’s management of the existence of this requirement. Effect: The Company could not provide the audit team with the disciplinary actions taken against one of the employees that was paid under this federal grant. Recommendation: The Company must obtain a good understanding of all requirements included in the grant agreement and ensure to keep evidence of compliance of such requirements for future reference and to provide evidence to any examination from the granting agency. Views of responsible officials: See Corrective Action Plan
Finding 2022-002
Criteria: 200 CFR Subpart D Condition: During our examination of the filings of the monthly programmatic reports that had to be submitted to the pass-through entity as required by the grant agreement, the Company could not provide evidence of filing for five (4) of the 12 months for the period under audit. Cause: This was caused by the fact that the reports were submitted by email, and the Company did not keep a copy of the emails sent. In the other hand, since the emails are eliminated from the Company’s server after 3 months, the Company was not able to retrieve the emails in order to evidence the filing of the reports. Effect: The Company could not provide the audit team with evidence that the reports required by the grant agreement were submitted to the pass-through entity. Recommendation: The Company must obtain a good understanding of all requirements included in the grant agreement, and ensure to keep evidence of compliance of such requirements for future reference and to provide evidence to any examination from the granting agency. Views of responsible officials: See Corrective Action Plan