Audit 44138

FY End

2022-06-30

Total Expended

$877,014

Findings

4

Programs

2

Organization: Commonwealth of Puerto Rico Municipal Revenue Collection Center (PR)

Year: 2022 Accepted: 2023-08-10

Auditor: Lopez Vega CPA Psc

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
38778	2022-002	Significant Deficiency	-	L
38779	2022-002	Significant Deficiency	-	L
615220	2022-002	Significant Deficiency	-	L
615221	2022-002	Significant Deficiency	-	L

ALN	Program	Spent	Major	Findings
21.027	Coronavirus State and Local Fiscal Recovery Funds	$750,000	Yes	1
97.036	Disaster Grants - Public Assistance (presidentially Declared Disasters)	$127,014	-	1

Contacts

Name	Title	Type
P9F3LQZ3CAE3	Diana Claudio	Auditee
7876252746	Alfredo Lopez	Auditor
No contacts on file

Notes to SEFA

Title: GENERAL Accounting Policies: Expenditures presented on the Schedule are reported on the modified basis of accounting. Expenditures are recognized when the related liability is incurred following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for Public Assistance Grant (FEMA) are recognized in the period under (1) FEMA has approved the PW, and (2) eligible expenditures are incurred.The Federal Assistance Listing Number (ALN), formerly known as Catalog of Federal Domestic Assistance Number (CFDA), is a program identification number. The first two digits identify the federal department of agency that administers the program and the last three numbers are assigned by numerical sequence.State or local government redistributions of federal awards to the Center, known as pass-through awards should be treated by the Center as though they were received directly from the federal government. The Uniform Guidance requires the Schedule to include the name of the pass-through entity and the identifying number assigned by the pass-through entity for the federal awards received as a sub-recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the funds expended by the Center from all federal programs for the year ended June 30, 2022. The Centers reporting entity is defined in Note 1 to the financial statements.

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures presented on the Schedule are reported on the modified basis of accounting. Expenditures are recognized when the related liability is incurred following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for Public Assistance Grant (FEMA) are recognized in the period under (1) FEMA has approved the PW, and (2) eligible expenditures are incurred.The Federal Assistance Listing Number (ALN), formerly known as Catalog of Federal Domestic Assistance Number (CFDA), is a program identification number. The first two digits identify the federal department of agency that administers the program and the last three numbers are assigned by numerical sequence.State or local government redistributions of federal awards to the Center, known as pass-through awards should be treated by the Center as though they were received directly from the federal government. The Uniform Guidance requires the Schedule to include the name of the pass-through entity and the identifying number assigned by the pass-through entity for the federal awards received as a sub-recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards 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 of the amounts presented in the schedule may differ from the amounts presented in, or used in the presentation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position and changes in net position of the Center.

Title: RECONCILIATION TO FINANCIAL STATEMENTS Accounting Policies: Expenditures presented on the Schedule are reported on the modified basis of accounting. Expenditures are recognized when the related liability is incurred following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for Public Assistance Grant (FEMA) are recognized in the period under (1) FEMA has approved the PW, and (2) eligible expenditures are incurred.The Federal Assistance Listing Number (ALN), formerly known as Catalog of Federal Domestic Assistance Number (CFDA), is a program identification number. The first two digits identify the federal department of agency that administers the program and the last three numbers are assigned by numerical sequence.State or local government redistributions of federal awards to the Center, known as pass-through awards should be treated by the Center as though they were received directly from the federal government. The Uniform Guidance requires the Schedule to include the name of the pass-through entity and the identifying number assigned by the pass-through entity for the federal awards received as a sub-recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During fiscal year ended June 30, 2022, the Federal Emergency Management Agency (FEMA) obligated funds to the Center to cover cost incurred in prior year as a response to COVID-19 Public Health Emergency. Accordingly, the information reported in the accompanying Schedule of Expenditures of Federal Awards has being reconciled to the information reported in the Centers basic financial statements, as follows:Expenditures per financial statements$750,000Costs incurred in prior year approved for reimbursement during current year127,014Expenditures per Schedule of Expenditures of Federal Awards$877,014

Title: LATENESS OF SINGLE AUDIT REPORTING PACKAGE Accounting Policies: Expenditures presented on the Schedule are reported on the modified basis of accounting. Expenditures are recognized when the related liability is incurred following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for Public Assistance Grant (FEMA) are recognized in the period under (1) FEMA has approved the PW, and (2) eligible expenditures are incurred.The Federal Assistance Listing Number (ALN), formerly known as Catalog of Federal Domestic Assistance Number (CFDA), is a program identification number. The first two digits identify the federal department of agency that administers the program and the last three numbers are assigned by numerical sequence.State or local government redistributions of federal awards to the Center, known as pass-through awards should be treated by the Center as though they were received directly from the federal government. The Uniform Guidance requires the Schedule to include the name of the pass-through entity and the identifying number assigned by the pass-through entity for the federal awards received as a sub-recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Single Audit reporting package, as defined and required in 2 CFR 200 for the fiscal year ended June 30, 2022, could not be submitted in a timely manner. From 2017 to the present, Puerto Rico has suffered four consecutive emergencies caused by nature and health situations: Hurricane Maria, Earthquakes, COVID-19, and Hurricane Fiona. Due to the delays caused by the matters and situations described before, The Center was not able to submit the Single Audit Reporting Package related to the fiscal year 2021-2022 on March 31, 2023 (its due date).

Finding Details

Finding 2022-002

Finding Reference 2022-002 Federal Agency: US Department of the Treasury Pass-through the Puerto Rico Department of the Treasury US Department of Homeland Security Pass-through the Puerto Rico Central Office for Recovery, Reconstruction and Resiliency (COR3) Federal Program: All Federal Programs Compliance Requirement: Reporting Type of Finding: Significant Deficiency (SD) and Instance of Noncompliance (NC) No similar finding was noted during prior year audit. Statement of Condition The Data Collection Form and the Reporting Package for the year ended June 30, 2022 was not timely submitted to the federal government. The Data Collection Form and the Reporting Package must be submitted by the auditee within the earlier of 30-day after the receipt of the auditors? reports or nine (9) months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. No extension from the cognizant or oversight agency was noted. Criteria The Uniform Guidance 2 CFR Section 200.512(a) requires the audit to be completed and the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse (?FAC?) nine months after the end of the audit period. Cause of Condition The Center has not been able to provide the necessary information for the preparation of the single audit report on a timely basis in order to complete its reporting requirement for the fiscal year ended on June 30, 2022. Effect of Condition The Center is not complying with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants awarding process. Questioned Costs None Recommendation The Center should adopt policies and procedures to ensure that the annual audit is performed and submitted in a timely manner. View of Responsible Officials and Planned Corrective Actions The Center agrees with the finding and recommendation will be implemented.

Finding 2022-002

Finding Reference 2022-002 Federal Agency: US Department of the Treasury Pass-through the Puerto Rico Department of the Treasury US Department of Homeland Security Pass-through the Puerto Rico Central Office for Recovery, Reconstruction and Resiliency (COR3) Federal Program: All Federal Programs Compliance Requirement: Reporting Type of Finding: Significant Deficiency (SD) and Instance of Noncompliance (NC) No similar finding was noted during prior year audit. Statement of Condition The Data Collection Form and the Reporting Package for the year ended June 30, 2022 was not timely submitted to the federal government. The Data Collection Form and the Reporting Package must be submitted by the auditee within the earlier of 30-day after the receipt of the auditors? reports or nine (9) months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. No extension from the cognizant or oversight agency was noted. Criteria The Uniform Guidance 2 CFR Section 200.512(a) requires the audit to be completed and the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse (?FAC?) nine months after the end of the audit period. Cause of Condition The Center has not been able to provide the necessary information for the preparation of the single audit report on a timely basis in order to complete its reporting requirement for the fiscal year ended on June 30, 2022. Effect of Condition The Center is not complying with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants awarding process. Questioned Costs None Recommendation The Center should adopt policies and procedures to ensure that the annual audit is performed and submitted in a timely manner. View of Responsible Officials and Planned Corrective Actions The Center agrees with the finding and recommendation will be implemented.

Finding 2022-002

Finding Reference 2022-002 Federal Agency: US Department of the Treasury Pass-through the Puerto Rico Department of the Treasury US Department of Homeland Security Pass-through the Puerto Rico Central Office for Recovery, Reconstruction and Resiliency (COR3) Federal Program: All Federal Programs Compliance Requirement: Reporting Type of Finding: Significant Deficiency (SD) and Instance of Noncompliance (NC) No similar finding was noted during prior year audit. Statement of Condition The Data Collection Form and the Reporting Package for the year ended June 30, 2022 was not timely submitted to the federal government. The Data Collection Form and the Reporting Package must be submitted by the auditee within the earlier of 30-day after the receipt of the auditors? reports or nine (9) months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. No extension from the cognizant or oversight agency was noted. Criteria The Uniform Guidance 2 CFR Section 200.512(a) requires the audit to be completed and the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse (?FAC?) nine months after the end of the audit period. Cause of Condition The Center has not been able to provide the necessary information for the preparation of the single audit report on a timely basis in order to complete its reporting requirement for the fiscal year ended on June 30, 2022. Effect of Condition The Center is not complying with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants awarding process. Questioned Costs None Recommendation The Center should adopt policies and procedures to ensure that the annual audit is performed and submitted in a timely manner. View of Responsible Officials and Planned Corrective Actions The Center agrees with the finding and recommendation will be implemented.

Finding 2022-002

Finding Reference 2022-002 Federal Agency: US Department of the Treasury Pass-through the Puerto Rico Department of the Treasury US Department of Homeland Security Pass-through the Puerto Rico Central Office for Recovery, Reconstruction and Resiliency (COR3) Federal Program: All Federal Programs Compliance Requirement: Reporting Type of Finding: Significant Deficiency (SD) and Instance of Noncompliance (NC) No similar finding was noted during prior year audit. Statement of Condition The Data Collection Form and the Reporting Package for the year ended June 30, 2022 was not timely submitted to the federal government. The Data Collection Form and the Reporting Package must be submitted by the auditee within the earlier of 30-day after the receipt of the auditors? reports or nine (9) months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. No extension from the cognizant or oversight agency was noted. Criteria The Uniform Guidance 2 CFR Section 200.512(a) requires the audit to be completed and the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse (?FAC?) nine months after the end of the audit period. Cause of Condition The Center has not been able to provide the necessary information for the preparation of the single audit report on a timely basis in order to complete its reporting requirement for the fiscal year ended on June 30, 2022. Effect of Condition The Center is not complying with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants awarding process. Questioned Costs None Recommendation The Center should adopt policies and procedures to ensure that the annual audit is performed and submitted in a timely manner. View of Responsible Officials and Planned Corrective Actions The Center agrees with the finding and recommendation will be implemented.