FAC Explorer

Audit 6364

FY End
2023-06-30
Total Expended
$6.27M
Findings
4
Programs
12
Organization: Municipality of Quebradillas (PR)
Year: 2023 Accepted: 2023-12-13
Auditor: Ortiz Rivera Rivera & CO LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
4042 2023-002 Significant Deficiency - L
4043 2023-002 Significant Deficiency - L
580484 2023-002 Significant Deficiency - L
580485 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.08M Yes 0
93.600 Head Start $1.02M Yes 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $645,065 - 0
93.575 Child Care and Development Block Grant $494,199 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $187,092 Yes 1
16.575 Crime Victim Assistance $64,320 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $54,067 - 0
20.507 Federal Transit_formula Grants $46,679 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $40,810 - 0
14.871 Section 8 Housing Choice Vouchers $37,196 - 0
93.053 Nutrition Services Incentive Program $30,249 - 0
10.558 Child and Adult Care Food Program $23,314 - 0

Contacts

Name Title Type
H9Z2BQGAYF84 Luis Mercado Auditee
7878952840 CPA Marco Rivera Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: Modified accrual basis De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the minimun indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Municipality under programs of the federal government for the year ended June 30, 2023. 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). Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Municipality, it is not intended to and does not present the financial position and changes in net position of the Municipality.
Title: Summary of significant accounting policies Accounting Policies: Modified accrual basis De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the minimun indirect cost rate. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures related to Disaster Grants – Public Assistance (Assistance Listing Number 97-036) are recognized when incurred and approved by the granting agency.
Title: Indirect cost rate Accounting Policies: Modified accrual basis De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the minimun indirect cost rate. The Municipality did not elect to use the ten percent of the minimum indirect cost rate allowed under the Uniform Guidance.
Title: Reconciliation of expenditures presented in the schedule of expenditures of federal awards to the expenditures presented in the basis financial statements Accounting Policies: Modified accrual basis De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the minimun indirect cost rate. The expenditures of the schedule are included in the Municipality’s basic financial statements. The reconciliation of expenditures in the basic financial statements to the Schedule of Expenditures of Federal Awards is as follows:

Finding Details

Finding 2023-002
Condition The required Annual Project and Expenditure (P & E) Report was submitted late. The report required for the year ended March 31, 2023, was due on April 30, 2023. Criteria 2 CFR 200.328 and 31 CFR section 35.4(c) required financial and performance reporting information. The information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. Context We request the report submitted during the fiscal year to be audited and observed the report was submitted after the due date. Cause The Municipality failed in submission of the required report on time due to lack of knowledge of requisites and instructions about the completion of the report. Effect The Municipality cannot comply with federal regulations; the evaluation of the federal funds use cannot be observed and monitored by the Agency. The situation could affect the program outcomes. Questioned Costs Not determined Recommendation We recommend the Municipality maintain the schedule of the due date of required reports.
Finding 2023-002
Condition The required Annual Project and Expenditure (P & E) Report was submitted late. The report required for the year ended March 31, 2023, was due on April 30, 2023. Criteria 2 CFR 200.328 and 31 CFR section 35.4(c) required financial and performance reporting information. The information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. Context We request the report submitted during the fiscal year to be audited and observed the report was submitted after the due date. Cause The Municipality failed in submission of the required report on time due to lack of knowledge of requisites and instructions about the completion of the report. Effect The Municipality cannot comply with federal regulations; the evaluation of the federal funds use cannot be observed and monitored by the Agency. The situation could affect the program outcomes. Questioned Costs Not determined Recommendation We recommend the Municipality maintain the schedule of the due date of required reports.
Finding 2023-002
Condition The required Annual Project and Expenditure (P & E) Report was submitted late. The report required for the year ended March 31, 2023, was due on April 30, 2023. Criteria 2 CFR 200.328 and 31 CFR section 35.4(c) required financial and performance reporting information. The information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. Context We request the report submitted during the fiscal year to be audited and observed the report was submitted after the due date. Cause The Municipality failed in submission of the required report on time due to lack of knowledge of requisites and instructions about the completion of the report. Effect The Municipality cannot comply with federal regulations; the evaluation of the federal funds use cannot be observed and monitored by the Agency. The situation could affect the program outcomes. Questioned Costs Not determined Recommendation We recommend the Municipality maintain the schedule of the due date of required reports.
Finding 2023-002
Condition The required Annual Project and Expenditure (P & E) Report was submitted late. The report required for the year ended March 31, 2023, was due on April 30, 2023. Criteria 2 CFR 200.328 and 31 CFR section 35.4(c) required financial and performance reporting information. The information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. Context We request the report submitted during the fiscal year to be audited and observed the report was submitted after the due date. Cause The Municipality failed in submission of the required report on time due to lack of knowledge of requisites and instructions about the completion of the report. Effect The Municipality cannot comply with federal regulations; the evaluation of the federal funds use cannot be observed and monitored by the Agency. The situation could affect the program outcomes. Questioned Costs Not determined Recommendation We recommend the Municipality maintain the schedule of the due date of required reports.