FAC Explorer

Audit 48325

FY End
2022-06-30
Total Expended
$702.96M
Findings
8
Programs
4
Organization: Department of Housing of the Commonwealth of Puerto Rico (PR)
Year: 2022 Accepted: 2023-07-30
Auditor: CPA Diaz-Martinez Csp

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
43195 2022-001 Material Weakness - L
43196 2022-002 Significant Deficiency Yes L
43197 2022-001 Material Weakness - L
43198 2022-002 Significant Deficiency Yes L
619637 2022-001 Material Weakness - L
619638 2022-002 Significant Deficiency Yes L
619639 2022-001 Material Weakness - L
619640 2022-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $2.15M Yes 2
14.267 Continuum of Care Program $911,020 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $560,000 - 0
10.558 Child and Adult Care Food Program $25,678 - 0

Contacts

Name Title Type
FFNMUBT6WCM1 Juan Rivera Carrillo Auditee
7872742527 Jose Ernesto Diaz Martinez Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in Office of Management and Budget Circular A-87, State and Local Governments, or the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement.B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.C. Pass-through entity identifying numbers are presented where available and applicable. 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 (Schedule) includes the federal award activities of the Department of Housing of the Commonwealth of Puerto Rico (PRDH) under programs of the Federal government for the fiscal year ended June 30, 2022. 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 PRDH, it is not intended to and does not present the financial position, changes in net position, or cash flows of the PRDH.Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. PRDH reporting entity is defined in Note (1) (A) to the basic financial statements. All federal financial awards received directly from federal agency as well as federal financial awards passed-through other government agencies, if any, are included on the Schedule.
Title: SCHEDULE NOT IN AGREEMENT WITH OTHER FEDERAL AWARD REPORTS Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in Office of Management and Budget Circular A-87, State and Local Governments, or the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement.B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.C. Pass-through entity identifying numbers are presented where available and applicable. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The information included in the Schedule may not fully agree with other federal award reports submitted directly to federal granting agencies.
Title: ASSISTANCE LISTING NUMBER Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in Office of Management and Budget Circular A-87, State and Local Governments, or the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement.B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.C. Pass-through entity identifying numbers are presented where available and applicable. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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.
Title: COMMUNITY DEVELOPMENT BLOCK GRANTS/STATES PROGRAM AND NON-ENTITLEMENT GRAN Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in Office of Management and Budget Circular A-87, State and Local Governments, or the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement.B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.C. Pass-through entity identifying numbers are presented where available and applicable. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. This Community Development Block Grants/States Program and Non-Entitlement Grants in Hawaii (CDBG) program provides annual grants to municipalities to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. The CDBG program includes funds for the Community Development Block Grants/States Program and Non-Entitlement Grants in Hawaii Disaster Recovery Program or CDBG-DR program which provides funds to rebuild areas affected by Presidentially declared disasters and provide crucial seed money to start the recovery process.
Title: RELATIONSHIP TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BAL Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in Office of Management and Budget Circular A-87, State and Local Governments, or the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement.B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.C. Pass-through entity identifying numbers are presented where available and applicable. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures of Federal awards are reported in PRDHs Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Fund in the Community Development Block Grant Fund, Community Development Block Grant Disaster Recovery Fund, Self-Contribution Fund, Sales and Acquisition Fund, and Other Governmental Funds columns.
Title: LATE ISSUANCE OF SINGLE AUDIT REPORTING PACKAGE Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in Office of Management and Budget Circular A-87, State and Local Governments, or the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement.B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.C. Pass-through entity identifying numbers are presented where available and applicable. 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 fiscal year ended June 30, 2022, could not be submitted in a timely manner.

Finding Details

Finding 2022-001
2 CFR ? 200.512 Report Submission, (a) (1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. STATEMENT OF CONDITION PRDH did not submit the Data Collection Form and Reporting Package to the Federal Audit Clearinghouse of fiscal year ending June 30, 2022 during the required period. QUESTIONED COSTS None PERSPECTIVE INFORMATION PRDH was unable to provide timely financial statements and related supporting documentation in order to apply required audit procedures. STATEMENT OF CAUSE PRDH did not have an effective accounting system and procedures to assure that the required financial statements and supporting documentation was made available for audit purposes within the required period established to comply with the Federal regulations. POSSIBLE ASSERTED EFFECT PRDH did not comply with the submission date required for the Data Collection Form and Reporting Package, this could affect the continuance and new approvals of Federal funds. In addition, for the next two (2) fiscal years PRDH cannot be considered by the auditor as a low risk auditee. IDENTIFICATION AS A REPEAT FINDING This is not a repeat finding. RECOMMENDATION We recommend the PRDH maintain adequate accounting records related to the non-Federal and Federal funds in order to properly prepare the financial statements accurately and in a timely manner. In addition, PRDH needs to implement adequate internal controls procedures in order to ensure that the supporting documentation is available on a timely manner.
Finding 2022-002
CRITERIA In accordance with 2 CFR Part 170, establish that recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The non-Federal entity or Federal agency must report each obligating action to http://www.fsrs.gov. For subaward information, report no later than the end of the month following the month in which the obligation was made. STATEMENT OF CONDITION As part of our audit procedures, we interviewed staff responsible for the CDBG program, and we were told that they had not been submitted the required Federal Funding Accountability and Transparency Act (FFATA) reports during the 2021-2022 fiscal year. QUESTIONED COSTS None PERSPECTIVE INFORMATION The PRDH did not provide details of those awards or contracts subject to the FFATA requirements. All government entities in Puerto Rico have to submit all formalized contracts to the "Office of the Comptroller of Puerto Rico". In a search carried out, the total number of transactions that we understand could be subawards and therefore subject to the FFATA requirements, totaled about 241 contracts. STATEMENT OF CAUSE The PRDH staff were unaware of the requirements related to the FFATA applicable to the CDGB funds they manage. POSSIBLE ASSERTED EFFECT The PRDH is in non-compliance with the requirements to report through the FFATA Subaward Reporting System (FSRS) platform. This condition does not allow for the transparency that this report requires. IDENTIFICATION OF REPEAT FINDING This is a repeat finding (Finding Reference No. 2021-002). RECOMMENDATIONS We recommend management to provide training and technical assistance to the personnel they designate to monitor all the funds delegation contracts that meet the requirements to be reported on the FSRS portal, and to be able to keep track of when they had to be reported, the date in which they submitted the information to the portal, and all the elements required to be submitted on the platform.
Finding 2022-001
2 CFR ? 200.512 Report Submission, (a) (1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. STATEMENT OF CONDITION PRDH did not submit the Data Collection Form and Reporting Package to the Federal Audit Clearinghouse of fiscal year ending June 30, 2022 during the required period. QUESTIONED COSTS None PERSPECTIVE INFORMATION PRDH was unable to provide timely financial statements and related supporting documentation in order to apply required audit procedures. STATEMENT OF CAUSE PRDH did not have an effective accounting system and procedures to assure that the required financial statements and supporting documentation was made available for audit purposes within the required period established to comply with the Federal regulations. POSSIBLE ASSERTED EFFECT PRDH did not comply with the submission date required for the Data Collection Form and Reporting Package, this could affect the continuance and new approvals of Federal funds. In addition, for the next two (2) fiscal years PRDH cannot be considered by the auditor as a low risk auditee. IDENTIFICATION AS A REPEAT FINDING This is not a repeat finding. RECOMMENDATION We recommend the PRDH maintain adequate accounting records related to the non-Federal and Federal funds in order to properly prepare the financial statements accurately and in a timely manner. In addition, PRDH needs to implement adequate internal controls procedures in order to ensure that the supporting documentation is available on a timely manner.
Finding 2022-002
CRITERIA In accordance with 2 CFR Part 170, establish that recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The non-Federal entity or Federal agency must report each obligating action to http://www.fsrs.gov. For subaward information, report no later than the end of the month following the month in which the obligation was made. STATEMENT OF CONDITION As part of our audit procedures, we interviewed staff responsible for the CDBG program, and we were told that they had not been submitted the required Federal Funding Accountability and Transparency Act (FFATA) reports during the 2021-2022 fiscal year. QUESTIONED COSTS None PERSPECTIVE INFORMATION The PRDH did not provide details of those awards or contracts subject to the FFATA requirements. All government entities in Puerto Rico have to submit all formalized contracts to the "Office of the Comptroller of Puerto Rico". In a search carried out, the total number of transactions that we understand could be subawards and therefore subject to the FFATA requirements, totaled about 241 contracts. STATEMENT OF CAUSE The PRDH staff were unaware of the requirements related to the FFATA applicable to the CDGB funds they manage. POSSIBLE ASSERTED EFFECT The PRDH is in non-compliance with the requirements to report through the FFATA Subaward Reporting System (FSRS) platform. This condition does not allow for the transparency that this report requires. IDENTIFICATION OF REPEAT FINDING This is a repeat finding (Finding Reference No. 2021-002). RECOMMENDATIONS We recommend management to provide training and technical assistance to the personnel they designate to monitor all the funds delegation contracts that meet the requirements to be reported on the FSRS portal, and to be able to keep track of when they had to be reported, the date in which they submitted the information to the portal, and all the elements required to be submitted on the platform.
Finding 2022-001
2 CFR ? 200.512 Report Submission, (a) (1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. STATEMENT OF CONDITION PRDH did not submit the Data Collection Form and Reporting Package to the Federal Audit Clearinghouse of fiscal year ending June 30, 2022 during the required period. QUESTIONED COSTS None PERSPECTIVE INFORMATION PRDH was unable to provide timely financial statements and related supporting documentation in order to apply required audit procedures. STATEMENT OF CAUSE PRDH did not have an effective accounting system and procedures to assure that the required financial statements and supporting documentation was made available for audit purposes within the required period established to comply with the Federal regulations. POSSIBLE ASSERTED EFFECT PRDH did not comply with the submission date required for the Data Collection Form and Reporting Package, this could affect the continuance and new approvals of Federal funds. In addition, for the next two (2) fiscal years PRDH cannot be considered by the auditor as a low risk auditee. IDENTIFICATION AS A REPEAT FINDING This is not a repeat finding. RECOMMENDATION We recommend the PRDH maintain adequate accounting records related to the non-Federal and Federal funds in order to properly prepare the financial statements accurately and in a timely manner. In addition, PRDH needs to implement adequate internal controls procedures in order to ensure that the supporting documentation is available on a timely manner.
Finding 2022-002
CRITERIA In accordance with 2 CFR Part 170, establish that recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The non-Federal entity or Federal agency must report each obligating action to http://www.fsrs.gov. For subaward information, report no later than the end of the month following the month in which the obligation was made. STATEMENT OF CONDITION As part of our audit procedures, we interviewed staff responsible for the CDBG program, and we were told that they had not been submitted the required Federal Funding Accountability and Transparency Act (FFATA) reports during the 2021-2022 fiscal year. QUESTIONED COSTS None PERSPECTIVE INFORMATION The PRDH did not provide details of those awards or contracts subject to the FFATA requirements. All government entities in Puerto Rico have to submit all formalized contracts to the "Office of the Comptroller of Puerto Rico". In a search carried out, the total number of transactions that we understand could be subawards and therefore subject to the FFATA requirements, totaled about 241 contracts. STATEMENT OF CAUSE The PRDH staff were unaware of the requirements related to the FFATA applicable to the CDGB funds they manage. POSSIBLE ASSERTED EFFECT The PRDH is in non-compliance with the requirements to report through the FFATA Subaward Reporting System (FSRS) platform. This condition does not allow for the transparency that this report requires. IDENTIFICATION OF REPEAT FINDING This is a repeat finding (Finding Reference No. 2021-002). RECOMMENDATIONS We recommend management to provide training and technical assistance to the personnel they designate to monitor all the funds delegation contracts that meet the requirements to be reported on the FSRS portal, and to be able to keep track of when they had to be reported, the date in which they submitted the information to the portal, and all the elements required to be submitted on the platform.
Finding 2022-001
2 CFR ? 200.512 Report Submission, (a) (1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. STATEMENT OF CONDITION PRDH did not submit the Data Collection Form and Reporting Package to the Federal Audit Clearinghouse of fiscal year ending June 30, 2022 during the required period. QUESTIONED COSTS None PERSPECTIVE INFORMATION PRDH was unable to provide timely financial statements and related supporting documentation in order to apply required audit procedures. STATEMENT OF CAUSE PRDH did not have an effective accounting system and procedures to assure that the required financial statements and supporting documentation was made available for audit purposes within the required period established to comply with the Federal regulations. POSSIBLE ASSERTED EFFECT PRDH did not comply with the submission date required for the Data Collection Form and Reporting Package, this could affect the continuance and new approvals of Federal funds. In addition, for the next two (2) fiscal years PRDH cannot be considered by the auditor as a low risk auditee. IDENTIFICATION AS A REPEAT FINDING This is not a repeat finding. RECOMMENDATION We recommend the PRDH maintain adequate accounting records related to the non-Federal and Federal funds in order to properly prepare the financial statements accurately and in a timely manner. In addition, PRDH needs to implement adequate internal controls procedures in order to ensure that the supporting documentation is available on a timely manner.
Finding 2022-002
CRITERIA In accordance with 2 CFR Part 170, establish that recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The non-Federal entity or Federal agency must report each obligating action to http://www.fsrs.gov. For subaward information, report no later than the end of the month following the month in which the obligation was made. STATEMENT OF CONDITION As part of our audit procedures, we interviewed staff responsible for the CDBG program, and we were told that they had not been submitted the required Federal Funding Accountability and Transparency Act (FFATA) reports during the 2021-2022 fiscal year. QUESTIONED COSTS None PERSPECTIVE INFORMATION The PRDH did not provide details of those awards or contracts subject to the FFATA requirements. All government entities in Puerto Rico have to submit all formalized contracts to the "Office of the Comptroller of Puerto Rico". In a search carried out, the total number of transactions that we understand could be subawards and therefore subject to the FFATA requirements, totaled about 241 contracts. STATEMENT OF CAUSE The PRDH staff were unaware of the requirements related to the FFATA applicable to the CDGB funds they manage. POSSIBLE ASSERTED EFFECT The PRDH is in non-compliance with the requirements to report through the FFATA Subaward Reporting System (FSRS) platform. This condition does not allow for the transparency that this report requires. IDENTIFICATION OF REPEAT FINDING This is a repeat finding (Finding Reference No. 2021-002). RECOMMENDATIONS We recommend management to provide training and technical assistance to the personnel they designate to monitor all the funds delegation contracts that meet the requirements to be reported on the FSRS portal, and to be able to keep track of when they had to be reported, the date in which they submitted the information to the portal, and all the elements required to be submitted on the platform.