FAC Explorer

Audit 52946

FY End
2022-06-30
Total Expended
$7.02M
Findings
2
Programs
9
Organization: Municipality of Aibonito (PR)
Year: 2022 Accepted: 2023-03-29
Auditor: Benitez Jaime CPA-Psc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50659 2022-004 Material Weakness - N
627101 2022-004 Material Weakness - N

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.79M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.19M Yes 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $663,803 Yes 1
84.425 Education Stabilization Fund $650,762 - 0
21.019 Coronavirus Relief Fund $639,310 Yes 0
14.195 Section 8 Housing Assistance Payments Program $638,893 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $180,377 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $178,461 - 0
14.871 Section 8 Housing Choice Vouchers $6,040 - 0

Contacts

Name Title Type
GPNHHP1PVE96 Mr. Tomas Colon Auditee
7877358181 Carlos E Benitez Auditor
No contacts on file

Notes to SEFA

Accounting Policies: 1.Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activities of the Municipality of Aibonito of the Commonwealth of Puerto Rico 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 Administrative Requirements, Cost Principles, and Audit Requirements for Federal awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Municipality of Aibonito, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Municipality of Aibonito.2.Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.The Municipality of Aibonito has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.3.Federal Loan The Municipality of Aibonito was approved by the U.S. Department of Homeland Security to receive loan of $2,709,917 through the Community Disaster Loan Program. The outstanding balance at June 30, 2022 is $1,806,611.4.Relationship to the Basic Financial StatementsRevenues and expenditures of the federal awards are included in the Municipalitys basic financial statements within the Capital Projects Fund, the Proprietary Fund and the Other Governmental Funds. The reconciliation between the expenditures in the basic financial statements and expenditures in the Schedule of Expenditures of Federal Awards is as follows:Expenditures in the basic financial statements: De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-004
CDBG 2022-004 WAGES RATE REQUIREMENTS (DAVIS-BACON ACT) CFDA 14.228 Statement of Condition: As part of our audit tests, we selected 4 (100%) construction projects out of 4 projects executed during the fiscal year. The following exception was noted during our examination of the project?s files: NONE (a) In three (3) 75% of project files the certified pay-rolls were not submitted by contractor as required by the federal regulations. Criteria: Non-federal entities shall include in their construction contracts subject to the Davis-Bacon Act a requirement that the contractor or subcontractor comply with the requirements of the Davis-Bacon Act and the DOL regulations (29 CFR part 5, ?Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction?). This includes a requirement for the contractor or subcontractor to submit to the non-Federal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6) Cause and Effect: This condition arose because the Municipality has not implemented specific internal controls and procedures designed to carry out effective monitoring activities over contractors engaged in projects financed with federal funds, including, but not limited to, the enforcement of compliance with contractual clauses related to Davis-Bacon Act and the training of municipal employees about this law. This condition, if not corrected, may increase the risk of avoidable instances of material non-compliances with the laws and regulations applicable to the Program. Recommendation: The Municipality should establish procedures to ascertain that all documents submitted by the contractor are reviewed and approved on a timely basis to ensure compliance with labor standards.
Finding 2022-004
CDBG 2022-004 WAGES RATE REQUIREMENTS (DAVIS-BACON ACT) CFDA 14.228 Statement of Condition: As part of our audit tests, we selected 4 (100%) construction projects out of 4 projects executed during the fiscal year. The following exception was noted during our examination of the project?s files: NONE (a) In three (3) 75% of project files the certified pay-rolls were not submitted by contractor as required by the federal regulations. Criteria: Non-federal entities shall include in their construction contracts subject to the Davis-Bacon Act a requirement that the contractor or subcontractor comply with the requirements of the Davis-Bacon Act and the DOL regulations (29 CFR part 5, ?Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction?). This includes a requirement for the contractor or subcontractor to submit to the non-Federal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6) Cause and Effect: This condition arose because the Municipality has not implemented specific internal controls and procedures designed to carry out effective monitoring activities over contractors engaged in projects financed with federal funds, including, but not limited to, the enforcement of compliance with contractual clauses related to Davis-Bacon Act and the training of municipal employees about this law. This condition, if not corrected, may increase the risk of avoidable instances of material non-compliances with the laws and regulations applicable to the Program. Recommendation: The Municipality should establish procedures to ascertain that all documents submitted by the contractor are reviewed and approved on a timely basis to ensure compliance with labor standards.