FAC Explorer

Audit 413995

FY End
2025-12-31
Total Expended
$1.05M
Findings
1
Programs
2
Organization: Centro De Desarollo Educativo Y Deportivo (PR)
Year: 2025 Accepted: 2026-09-30
Auditor: RODRIGUEZ RIVERA & TORO P S C

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1239122 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $995,534 Yes 1
10.558 CHILD AND ADULT CARE FOOD PROGRAM $53,018 Yes 0

Contacts

Name Title Type
JM5ZDK6GFX79 Cesar Lorenzo Auditee
7878068530 Cristian Vera Mercado, CPA Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the schedule) includes the federal grant activity of Centro de Desarrollo Educativo y Deportivo, Inc. under programs of the federal government for the year ended December 31, 2025. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements of Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from the amounts presented in the Organization’s financial statements. Because the schedule presents only a selected portion of the operation of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flow of the Organization.
Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
The Assistance Listing Number (ALN) is a program identification number. The first two digits identify the federal department or agency that administers the program, and the last three numbers are assigned by numerical sequence to most grants and cooperative agreements funded by the Federal government.
The Organization has elected not to use the de minimis indirect cost rate allowed unde the Uniform Guidance, which is 10 percent of modified total indirect costs for Federal awards subject to the requirements effective prior to October 1, 2024, and up to 15 percent of modified total indirect cost for Federal awards subject to the revised Uniform Guidance effective October 1, 2024.
See the Notes to the SEFA for chart/table

Finding Details

Finding 2025-001
Finding number: 2025-001 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Puerto Rico Department of the Family – Administracion para el Cuidado y Desarrollo Integral de la Niñez (ACUDEN) Federal Program: 93.575 – Child Care and Development Block Grant Compliance Requirement: Special Test and Provisions – Review of the grant agreement Type of finding: Instance of noncompliance Criteria: Under Section 4.4 of the Delegation of Funds Contract, the Organization was required to maintain a fixed enrollment of 61 eligible participants (10 Infant/Maternal, 12 Preschool, 25 School-Age, 14 Special Needs) under the ACUDEN Child Care program. Section 4.6 restricts the use of delegated exclusively to the children enrolled within these categories, and Section 9.1.L.i requires a corresponding adjustment to the funds request or a chargeback when enrollment is not complete. Condition: During the award period, the Organization did not maintain the required minimum enrollment of 61 eligible participants. The organization maintained an enrollment range consisting of 54-60 participants as of December 31, 2025. This condition was independently identified both by the Organization's independent auditors through a special test of compliance and by ACUDEN's own program monitoring. Context: The special test consisted of comparing the Organization's monthly enrollment reports (Informe de matrícula y Asistencia Mensual, required under Section 9.1.L.i of the contract) against the 61-participant minimum required under Section 4.4 for each month of the award period tested. The condition is not isolated: enrollment did not meet the required minimum in any of the months tested, and is consistent with the deficiency identified in ACUDEN's own compliance monitoring for the same award. Cause: The Organization was unable to enroll and/or retain the number of eligible participants required under the contract for the categories indicated above. The root cause was a shortfall in participant recruitment: the Organization did not enroll a sufficient number of eligible children to reach the 61-participant minimum required by Section 4.4 of the contract. Effect: The Organization received quarterly fund advances to provide service to 61 funded participant slots that were not fully utilized, resulting in funds advanced in excess of funds obligated. Questioned cost: 0 Identification as a repeat finding: Not applicable. Recommendation: We recommend the Organization strengthen recruitment, waitlist management, and enrollment-monitoring procedures to consistently meet the minimum participant levels required under the ACUDEN contract. Views of responsible officials and planned corrective action: Management concurs with the finding. A Corrective Action Plan (CAP) addressing the root cause and the steps to achieve and sustain the required minimum enrollment is being issued separately in accordance with 2 CFR 200.511 and Section 17.3 of the contract.