FAC Explorer

Audit 53614

FY End
2022-06-30
Total Expended
$12.63M
Findings
4
Programs
13
Organization: Commonwealth of Puerto Rico Municipality of Sabana Grande (PR)
Year: 2022 Accepted: 2023-03-30
Auditor: Roman Toro & CO CPA Csp

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
52126 2022-003 Significant Deficiency Yes L
52127 2022-004 Significant Deficiency - L
628568 2022-003 Significant Deficiency Yes L
628569 2022-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.58M Yes 1
97.030 Community Disaster Loans $915,372 - 0
93.600 Head Start $544,619 Yes 0
93.356 Head Start Disaster Recovery $397,605 Yes 0
93.575 Child Care and Development Block Grant $366,077 - 0
21.019 Coronavirus Relief Fund $314,710 Yes 0
10.558 Child and Adult Care Food Program $143,195 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $132,764 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $113,914 Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $86,891 - 0
14.871 Section 8 Housing Choice Vouchers $27,635 - 0
93.569 Community Services Block Grant $7,772 - 0
93.592 Family Violence Prevention and Services/discretionary $7,149 - 0

Contacts

Name Title Type
UCNFZ176DYF4 Victor Figueroa Auditee
7878732060 Janice Roman Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 - BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the Federal grant activity of the Municipality of Sabana Grande, Puerto Rico (Municipality) under programs of the Federal government for the fiscal year ended June 30, 2022. The information in the 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. The reporting entity is defined in Note 1 (B) to the basic financial statements. NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESA.The Schedule is prepared from Municipalitys accounting records and presents only a selected portion of the operations of the Municipality, it is not intended to, and does not present, the financial position or changes in net position of the Municipality.B.The Municipality in accordance with the terms and conditions of the grants, records the financial transactions which are consistent with accounting principles generally accepted in the United States of America.C.Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first.D.Expenditures reported on the Schedule are reported on the modified accrual basis of accounting, except for the programs Section 8 Housing Choice Vouchers (HCV) and Disaster Grants- Public Assistance. Expenditures for HCV Program are equal to the ACC subsidy for the PHA fiscal period. Expenditures for Disaster Grants- Public Assistance are recognized in the period when; (a) FEMA has approved the PW and (b) eligible expenditures are incurred. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-003
2022-003 Type of finding: Federal Award. Situation: Significant deficiency; compliance with federal regulations. Federal Program: Coronavirus Relief Fund (ALN 21.019) Compliance Requirements: Reporting Prior-Year(s) Audit Finding(s): 2021-001 Questioned Costs: None Condition: The Municipality submitted to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) on March 14, 2022 the Coronavirus Relief Fund (CRF) Use of Funds Report for all the expenses incurred under the Assistance Program to Municipalities instead of submitting the report on a monthly basis as required by program regulations. Context: The Municipality received $203,352.41 for Phase IV under the Assistance Program to Municipalities during the fiscal year ended on June 30, 2022. The Municipality used $1,391,775 in program funds to cover expenses related to the public health emergency caused by the Covid-19 pandemic. The Municipality submitted the required report to the Aafaf on March 14, 2022. Criteria: As per the Coronavirus Relief Fund (CRF) Transfer Agreement for the Assistance Program to Municipalities clause 5.1, the Transferee shall submit reports as the Transferor determines are needed to verify use of the funds and compliance with conditions that are imposed on the Transfer, and such reports shall be in such form, which such content, as specified by the Transferor in the Transfer Plan and future program instructions directed to all Recipients. Exhibit A of the Transfer Plan states that the Transferee will submit a Use of Funds Transfer Report for the prior month?s expenses by the 15th day of each month. Cause: The Municipality did not submit the Use of Funds Report to the Aafaf by the 15th day of the following month the expenses were incurred. Effect: The Municipality submitted to Aafaf a final Use of Funds Report instead of completing the report on a monthly basis, on or before the 15th of the month, as required by program regulations. Auditor?s recommendation: The Municipality should implement internal controls and procedures to assure that the required reports are completed and submitted timely as per program regulations. Views of Responsible officials and corrective actions: Reports and expense reports have been submitted to CRF Municipalities Closeout. Auditors from the U.S. have visited us twice. We have provided all the information that they have requested in these visits. Finally we did reimbursed the balance not used. Contact Tracing Reports were submitted monthly in 2021-2022. Audit Status: Partially Resolved
Finding 2022-004
Type of finding: Federal Award. Situation: Significant deficiency; compliance with federal regulations. Federal Program: Coronavirus State and Local Fiscal Recovery Fund (ALN 21.027) Compliance Requirements: Reporting Prior-Year(s) Audit Finding(s): None Questioned Costs: None Condition: The Municipality has not submitted to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) the Coronavirus State Fiscal Recovery Fund Use of Funds Report for all the expenses incurred under the Municipal Strengthening Fund Program. Context: The Municipality received $4,370,808 under the Coronavirus State Fiscal Recovery Fund during the fiscal year ended on June 30, 2022. The Municipality used $1,577,293 in program funds to cover expenses related to the public health emergency caused by the Covid-19 pandemic. Criteria: Under the Municipal Strengthening Fund Program, the Municipality must report to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) program expenses for the month, 15 days after the end of the month. Cause: The Municipality did not submit the Use of Funds Report to the Aafaf by the 15th day of the following month the expenses were incurred. Effect: The Municipality is not in compliance with its grant award. Auditor?s recommendation: The Municipality should implement internal controls and procedures to assure that the required reports are completed and submitted timely as per program regulations. Views of Responsible officials and corrective actions: The Municipality submitted the Municipal Strengthening Fund Program Report in July 28, 2022. We will be submitting the reporting monthly during this current fiscal year 2022-2023. Audit Status: Partially Resolved
Finding 2022-003
2022-003 Type of finding: Federal Award. Situation: Significant deficiency; compliance with federal regulations. Federal Program: Coronavirus Relief Fund (ALN 21.019) Compliance Requirements: Reporting Prior-Year(s) Audit Finding(s): 2021-001 Questioned Costs: None Condition: The Municipality submitted to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) on March 14, 2022 the Coronavirus Relief Fund (CRF) Use of Funds Report for all the expenses incurred under the Assistance Program to Municipalities instead of submitting the report on a monthly basis as required by program regulations. Context: The Municipality received $203,352.41 for Phase IV under the Assistance Program to Municipalities during the fiscal year ended on June 30, 2022. The Municipality used $1,391,775 in program funds to cover expenses related to the public health emergency caused by the Covid-19 pandemic. The Municipality submitted the required report to the Aafaf on March 14, 2022. Criteria: As per the Coronavirus Relief Fund (CRF) Transfer Agreement for the Assistance Program to Municipalities clause 5.1, the Transferee shall submit reports as the Transferor determines are needed to verify use of the funds and compliance with conditions that are imposed on the Transfer, and such reports shall be in such form, which such content, as specified by the Transferor in the Transfer Plan and future program instructions directed to all Recipients. Exhibit A of the Transfer Plan states that the Transferee will submit a Use of Funds Transfer Report for the prior month?s expenses by the 15th day of each month. Cause: The Municipality did not submit the Use of Funds Report to the Aafaf by the 15th day of the following month the expenses were incurred. Effect: The Municipality submitted to Aafaf a final Use of Funds Report instead of completing the report on a monthly basis, on or before the 15th of the month, as required by program regulations. Auditor?s recommendation: The Municipality should implement internal controls and procedures to assure that the required reports are completed and submitted timely as per program regulations. Views of Responsible officials and corrective actions: Reports and expense reports have been submitted to CRF Municipalities Closeout. Auditors from the U.S. have visited us twice. We have provided all the information that they have requested in these visits. Finally we did reimbursed the balance not used. Contact Tracing Reports were submitted monthly in 2021-2022. Audit Status: Partially Resolved
Finding 2022-004
Type of finding: Federal Award. Situation: Significant deficiency; compliance with federal regulations. Federal Program: Coronavirus State and Local Fiscal Recovery Fund (ALN 21.027) Compliance Requirements: Reporting Prior-Year(s) Audit Finding(s): None Questioned Costs: None Condition: The Municipality has not submitted to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) the Coronavirus State Fiscal Recovery Fund Use of Funds Report for all the expenses incurred under the Municipal Strengthening Fund Program. Context: The Municipality received $4,370,808 under the Coronavirus State Fiscal Recovery Fund during the fiscal year ended on June 30, 2022. The Municipality used $1,577,293 in program funds to cover expenses related to the public health emergency caused by the Covid-19 pandemic. Criteria: Under the Municipal Strengthening Fund Program, the Municipality must report to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) program expenses for the month, 15 days after the end of the month. Cause: The Municipality did not submit the Use of Funds Report to the Aafaf by the 15th day of the following month the expenses were incurred. Effect: The Municipality is not in compliance with its grant award. Auditor?s recommendation: The Municipality should implement internal controls and procedures to assure that the required reports are completed and submitted timely as per program regulations. Views of Responsible officials and corrective actions: The Municipality submitted the Municipal Strengthening Fund Program Report in July 28, 2022. We will be submitting the reporting monthly during this current fiscal year 2022-2023. Audit Status: Partially Resolved