Audit 371899

FY End
2024-06-30
Total Expended
$19.88M
Findings
8
Programs
6
Organization: Puerto Rico Ports Authority (PR)
Year: 2024 Accepted: 2025-11-07
Auditor: GALINDEZ LLC

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1162027 2024-004 Material Weakness Yes F
1162028 2024-005 Material Weakness Yes L
1162029 2024-008 Material Weakness Yes L
1162030 2024-005 Material Weakness Yes L
1162031 2024-006 Material Weakness Yes ABHN
1162032 2024-007 Material Weakness Yes C
1162033 2024-005 Material Weakness Yes L
1162034 2024-006 Material Weakness Yes ABHN

Contacts

Name Title Type
XJULBJJEK958 Luis Raúl Torres-Melendez Auditee
7877298715 Henry Flores Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Puerto Rico Ports Authority (the Authority) 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 amounts presented in, or used in the preparation of, the Authority’s financial statements. Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Authority.
a. The Schedule is prepared from the Authority’s accounting records. b. The financial transactions are recorded by the Authority in accordance with the terms and conditions of the grants, which are consistent with the accounting principles generally accepted in the United States of America. c. Expenditures are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. d. The Authority does not use the 10-percent de minimis indirect cost rate, as allowed under the Uniform Guidance.
The Assistance Listing Numbers (ALN) included in this Schedule are determined based on the program name, review of grant contract information and public descriptions of federal listings published by the U.S. Government on sam.gov. Assistance listing numbers are presented for those programs for which such numbers were available.
The amounts shown as federal expenditures represent only the federal grant portion of the program costs.

Finding Details

While obtaining our understanding of the policies and procedures in place at the Authority’s office in relation to the management of property and equipment, management represented to us that the required physical inventory has not been performed by the Authority’s Property Division personnel during the last two years as required.
During our audit procedures we detected that forms FAA 126 and Forms FAA 127 were not filed within the 120 days of the end of the airport’s fiscal year as required by the compliance supplement.
During our audit procedures, we identified that most capital advances received during fiscal years 2023 and 2024 from FEMA were still unused on June 30, 2024, with no procedures to minimize the time elapsing between funds received and disbursed.
The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2025 (9 months after the end of fiscal year).
During our procedures over the Authority’s funds received from FEMA we noticed the following: 1. Part of the funds received under ALN 97.036 were recorded as revenue without analyzing if the conditions for revenue recognition were met. When examining the evidence received, we noticed some of the funds were received as capital advances in which the Authority had recognized as revenue prior to expending the funds. These funds were incorrectly included in the original Schedule of Expenditures and Federal Awards (SEFA) without being expended. 2. The Authority did not correctly identify the correct federal award of funds received under ALN 97.056, Port Security Grant Program, which were originally identified under a the ALN 97.039, Hazard Mitigation Grant Program.