Audit 394859

FY End
2025-06-30
Total Expended
$67.70M
Findings
1
Programs
29
Year: 2025 Accepted: 2026-03-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
1187258 2025-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
93.600 HEAD START $20.35M Yes 0
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $10.17M Yes 0
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $10.12M Yes 0
93.356 HEAD START DISASTER RECOVERY $6.11M Yes 1
10.558 CHILD AND ADULT CARE FOOD PROGRAM $1.42M Yes 0
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $1.36M Yes 0
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $1.19M Yes 0
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $543,858 Yes 0
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $534,231 Yes 0
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $532,554 Yes 0
14.879 MAINSTREAM VOUCHERS $490,183 Yes 0
20.527 PUBLIC TRANSPORTATION EMERGENCY RELIEF PROGRAM $479,352 Yes 0
20.507 FEDERAL TRANSIT FORMULA GRANTS $234,353 Yes 0
97.067 HOMELAND SECURITY GRANT PROGRAM $188,669 Yes 0
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $186,796 Yes 0
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $169,180 Yes 0
20.513 ENHANCED MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES $166,879 Yes 0
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $143,414 Yes 0
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $130,371 Yes 0
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $128,887 Yes 0
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $59,120 Yes 0
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $47,388 Yes 0
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $44,550 Yes 0
16.575 CRIME VICTIM ASSISTANCE $30,504 Yes 0
20.526 BUSES AND BUS FACILITIES FORMULA, COMPETITIVE, AND LOW OR NO EMISSIONS PROGRAMS $30,087 Yes 0
20.505 METROPOLITAN TRANSPORTATION PLANNING AND STATE AND NON-METROPOLITAN PLANNING AND RESEARCH $17,694 Yes 0
45.310 GRANTS TO STATES $7,436 Yes 0
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $5,543 Yes 0
66.458 CLEAN WATER STATE REVOLVING FUND $1,410 Yes 0

Contacts

Name Title Type
L46HH5KH8CA1 Angie Frias Auditee
7877448833 Jose E Diaz Martinez Auditor
No contacts on file

Notes to SEFA

The Autonomous Municipality of Caguas of the Commonwealth of Puerto Rico (Municipality) was founded in 1775 and operates as a governmental unit of the Commonwealth of Puerto Rico under the Law No. 81 of August 30, 1991, known as the “Autonomous Municipalities Laws of the Commonwealth of Puerto Rico”. It is governed by a Mayor and a 16-member Municipal Legislature elected for a four-year term.
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activities of the Autonomous Municipality of Caguas of the Commonwealth of Puerto Rico (Municipality) under programs of the Federal government for the fiscal 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 Guidance). 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, changes in net position, or cash flows of the Municipality.
The information included in the Schedule may not fully agree with other Federal award reports submitted directly to federal granting agencies.
The Assistance Listing Number, formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five-digit number assigned in the awarding document for all Federal assistance award mechanisms, including Federal grants and cooperative agreements.
Expenditures of federal awards are reported in the Municipality’s Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Fund as follows: General Fund - $767,011, Capital Projects Fund – $2,177,271, Health and Human Services Fund – $22,670,063, Social and Welfare Activities Fund – $31,453,466 and Other Governmental Funds $24,619,751. The amount of $531,607 was included as expenditure in the SEFA, under the program Economic Adjustment Assistance (11.307) that are not expenditure. In accordance with program regulation, the amount of expenditure to be reported in the SEFA, should consider the principal loan balance outstanding at year end ($331,907), plus any cash balance available for loan purposes ($199,700), and finally, any administrative expenditures incurred during the fiscal year, if any. The Municipality receives FEMA reimbursement funds from the Central Recovery and Reconstruction Office of Puerto Rico (COR3). COR3 is a division of the Puerto Rico Public Private Authority created through Executive Order 2017-65 to manage all efforts for the recovery of the Commonwealth of Puerto Rico (Commonwealth) after the passage of Hurricanes Irma and María. COR3 was authorized by the Governor to receive all disaster recovery grants of FEMA. During fiscal year 2023-2024, COR3 approved projects under the ALN 97.036, related to Hurricane Fiona. The amount of $5,498,211 was recognized in the SEFA, which are related to expenditures incurred in prior year and the project worksheet was approved and received during this current year. The Municipality received grants under the Community Development Block Grants/State’s Program and Non-Entitlement Grants in Hawaii – CDBG-DR, from the Puerto Rico Housing Department (PRHD). In accordance with the program regulation, these funds are the matching portion for allowable costs incurred for projects approved by the PRHD, related to the Disaster Grants – Public Assistance (Presidentially Declared Disasters) expenditures.

Finding Details

FEDERAL PROGRAM (ALN 93.356) HEAD START DISASTER RECOVERY FROM HURRICANES HARVEY, IRMA, AND MARIA U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES AWARD NUMBER 02td000223 (Federal Award Year June 1, 2021 – December 31, 2025) COMPLIANCE REQUIREMENT REPORTING TYPE OF FINDING NONCOMPLIANCE AND SIGNIFICANT DEFICIENCY CRITERIA 2 CFR Section 200.302 (a) establishes that each State must expend and account for the Federal award in accordance with State laws and procedures for expending and accounting for the State's funds. All recipient and subrecipient financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by the terms and conditions; and tracking expenditures to establish that funds have been used in accordance with Federal statutes, regulations, and the terms and conditions of the Federal award. See § 200.450. In addition, the SF-425 Federal Financial Report requires the reporting of financial activities related to Federal awards. The accounting basis used for reporting expenditures (whether cash or accrual) must align with the accounting system employed by the recipient organization. In addition, 2 CFR §200.303 (a) establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). STATEMENT OF CONDITION As part of our audit procedures for evaluating internal controls and compliance with reporting requirements, we selected three (3) reports that were submitted during our fiscal year audit. During our review of the data related to Grant Award 02TD000223, we noted the following deficiency: the total Federal expenditure reported on line (e) of the report does not match the data provided by the client in the database, with a difference of $250,000. QUESTIONED COSTS None PERSPECTIVE INFORMATION This deficiency represents a systemic issue attributable to inadequate review procedures, which has resulted in the inaccurate reporting of Federal expenditures. STATEMENT OF CAUSE The discrepancy may be due to an error in the data collection process or a failure to properly transfer data between the database and the Federal expenditure report, or a lack of proper reconciliation between the two. POSSIBLE ASSERTED EFFECT This discrepancy could affect the accuracy of the financial reports, compromising transparency and the Municipality's compliance with Federal reporting requirements. It could also lead to misunderstandings regarding the proper use of the Federal funds awarded. IDENTIFICATION OF REPEAT FINDING This is not a repeat finding. RECOMMENDATIONS We recommend that the Municipality reviews their processes for reporting and recording Federal expenditure to ensure that the data reported on the system matches the database used during the audit. Additionally, we suggest implementing a regular reconciliation process between the reporting system and the database to prevent future errors and ensure compliance with Federal reporting requirements.