Audit 410006

FY End
2023-06-30
Total Expended
$2.12B
Findings
7
Programs
5
Year: 2023 Accepted: 2026-08-28
Auditor: RSM

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1228264 2023-003 Material Weakness Yes A
1228265 2023-004 Material Weakness Yes L
1228266 2023-004 Material Weakness Yes L
1228267 2023-005 Material Weakness Yes L
1228268 2023-006 Material Weakness Yes L
1228269 2023-007 Material Weakness Yes N
1228270 2023-008 Material Weakness Yes A

Contacts

Name Title Type
HEJDFU1K4E22 Vicente Rivera Auditee
7874747050 Hugo Burgos Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of the Central Office for Recovery, Reconstruction and Resiliency (COR3 or Program), a division of the Puerto Rico Public Private Partnership Authority (Authority), under programs of the federal government for the year ended June 30, 2023. The information in this SEFA 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 SEFA 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 position, or cash flows of the Authority.
The SEFA was prepared using the cash basis of accounting. Such expenses are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
The Authority has elected not to use the 10% Minimum Indirect Cost Rate allowed under the Uniform Guidance.
For the fiscal year 2022-2023, the Authority paid $2,015,546,052 of federal awards to the subrecipients through COR3.
The Assistance Listing Numbers (AL) (formerly Catalog of Federal Domestic Assistance (CFDA) numbers) are the publicly available listings of Federal assistance programs. The first two digits identify the federal department or agency that administers the program, and the last three numbers are assigned by numerical sequence.
The amounts shown in the current year federal expenses represent only the federal grant portion of the program costs.
The reconciliation of expenses reported in the governmental fund of the basic financial statements to the Schedule of Expenditures of Federal Awards (SEFA) is as follows. Expenses reported in the basic financial statements totaled $2,175,437,006. This amount was adjusted for non-federal expenses of $46,439,964, a $448,247 change in lease balances, a $8,285,711 change in accrued expenses, a $24,305 change in accrued payroll, and $29,513 in interest expenses, resulting in total expenses reported in the SEFA of $2,121,105,760.

Finding Details

While examined agreements for the subrecipients monitoring test, from a sample of sixty (60) subrecipient agreements, it was noted for twenty-five (25) subrecipients agreements payments were made before the date subrecipients agreements were signed. The identified agreements were as follows
The data collection forms and reporting package for the years ended June 30, 2023 and 2022, were not submitted within the required periods.
The required Federal Funding Accountability Transparency Act (FFATA) reports were not submitted within the required period as follows:
The required FFATA reports for the fiscal year ending June 30, 2023, were not submitted.
From a sample of sixty (60) closed projects classified as Large and Small Projects, sixteen (16) of these projects the Workbook for examination of the following PWs were not available to be examined: From a sample of sixty (60) closed projects classified as Large and Small Projects, three (3) of these projects the Closeout Request Letter of the following PWs were not available to be examined: From a sample of sixty (60) closed projects classified as Large and Small Projects, four (4) of these projects the Certification from applicants of the following PWs were not available to be examined From a sample of sixty (60) closed projects classified as Large and Small Projects, one (1) of these projects signed GAR Letter of the following PW was not available to be examined:
CO3, acting as pass-through entity, disbursed multiple working capital advances and from a sample of sixty (60) disbursements classified as Large Projects, nine (9) of these disbursements, neither a Request for Reimbursement (RFR) or detailed status reports were received within the 90days, nor a RFR within 180 days of working capital advance, as follows: Also, from a sample of sixty (60) disbursements classified as Large Projects, for ten (10) of these disbursements, a partial RFR and Status report were obtained after 180 days from receipt of the RFCA: