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Audit 8536

FY End
2019-06-30
Total Expended
$1.96M
Findings
8
Programs
3
Organization: Agricultural Enterprises Development Administration (PR)
Year: 2019 Accepted: 2023-12-27
Auditor: Valdes Garcia Marin & Martinez

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6599 2019-002 Significant Deficiency Yes L
6600 2019-003 - Yes L
6601 2019-003 - Yes L
6602 2019-002 Significant Deficiency Yes L
583041 2019-002 Significant Deficiency Yes L
583042 2019-003 - Yes L
583043 2019-003 - Yes L
583044 2019-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
10.576 Senior Farmers Market Nutrition Program $858,835 Yes 2
10.572 Wic Farmers' Market Nutrition Program (fmnp) $800,327 Yes 2
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $297,037 - 0

Contacts

Name Title Type
RTCZAHZ2UVJ6 Dializza Velez Auditee
7873045350 Idsa Ramos Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: A. Expenditures reported in the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable the cost principles in the the 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 Regulations Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negatives 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. D. Numbers identified as N/A are not applicable. Numbers identified as N/AV are not available. E. AEDA has elected not to use the 10 percent de minimis indirect cost rate allowed unde the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Indirect cost were not requested for fund. The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activities of the Agricultural Enterprises Development Administration ("AEDA') a compponent unit of the Commonwealth of Puerto Rico, under programs of the Federal government for the fiscal year ended June 30, 2019. 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 Schedules presents only a selected portion of the operations of AEDA, it is not intended to and does not present the financial position, changes in net position, or cash flows of AEDA.
Title: Summary of Significant Accounting Policies Accounting Policies: A. Expenditures reported in the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable the cost principles in the the 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 Regulations Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negatives 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. D. Numbers identified as N/A are not applicable. Numbers identified as N/AV are not available. E. AEDA has elected not to use the 10 percent de minimis indirect cost rate allowed unde the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Indirect cost were not requested for fund. A. Expenditures reported in the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable the cost principles in the the 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 Regulations Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negatives 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. D. Numbers identified as N/A are not applicable. Numbers identified as N/AV are not available. E. AEDA has elected not to use the 10 percent de minimis indirect cost rate allowed unde the Uniform Guidance.
Title: Schedule not in agreement with other Federal Award Reports Accounting Policies: A. Expenditures reported in the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable the cost principles in the the 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 Regulations Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negatives 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. D. Numbers identified as N/A are not applicable. Numbers identified as N/AV are not available. E. AEDA has elected not to use the 10 percent de minimis indirect cost rate allowed unde the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Indirect cost were not requested for fund. The information included in the Schedule may not fully agree with other federal award reports submitted directly to federal granting agencies.
Title: Federal CFDA Number Accounting Policies: A. Expenditures reported in the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable the cost principles in the the 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 Regulations Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negatives 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. D. Numbers identified as N/A are not applicable. Numbers identified as N/AV are not available. E. AEDA has elected not to use the 10 percent de minimis indirect cost rate allowed unde the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Indirect cost were not requested for fund. The CFDA numbers included in this Schedule are determined based on the program's name, review of grant contract information, and the Office of Management and Budget's Catalogue of Federal Domestic Assistance ("CFDA").
Title: Relationship to Statement of revenues, expenditures, and changes in fund balances - Governmental Funds Accounting Policies: A. Expenditures reported in the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable the cost principles in the the 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 Regulations Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negatives 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. D. Numbers identified as N/A are not applicable. Numbers identified as N/AV are not available. E. AEDA has elected not to use the 10 percent de minimis indirect cost rate allowed unde the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Indirect cost were not requested for fund. Expenditures of federal awards related to WIC Farmers' Market Nutrition Program and Senior Farmers' Market Nutrition Program are reported in AEDA's Statement of Revenues, Expenditures and Changes in Fund Balances -Governmental Funds in the Other Governmental Funds column. However, expenditures of federal awards related to Disaster Grants - Public Assistance (Presidentially Declared Disasters) are reported in AEDA's Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds in the General Fund colimn.

Finding Details

Finding 2019-002
Agency: U.S. department of Agriculture Federal Program: WIC Farmers'Market Nutrition ans Senior Farmers' Market Nutrition Programs CFDA: 10.572, 10.576 Grant Number: 201818Y860441/201818Y86741 201919Y860441/201919Y86741 Grant Period October 1, 2017 - September 30, 2018 October 1, 2018 -September 30, 2019 Compliance Reporting Category Noncompliance Criteria 2 CFR Part 200.512 - Report Submission General established that (1)The audit must be completed, and the data collection form and the reporting package 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 tge due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form forthe fiscal year ended Jine 30, 2019 was not timely submitted to the federal government. Effect AEDA is not in compliance with the reporting requirement set forth by federal regulation, which could affect the future of its federal grants. Cause AEDA has not been able to provide the necessary information for the preparation of the single auidt report on a timely basis inorder to complete its reporting reuirements for the fiscal year 2019. Prior Year Audit Finding 2018-003 Recommendation We recommend AEDA to assemble, before the year-end, an audit team to be in-charge of the single audit process. Also, AEDA's management should implement adequate procedures to timely close its accounting records, subsidiaries and reconciliations, which are esential for the preparation of the fiscal year-end financial statements and reports on an accurate timely manner. Questioned Costs None Management's Response Refer to Grantee's Corrective Action Plan.
Finding 2019-003
Agency: U.S. department of Agriculture Federal Program: WIC Farmers'Market Nutrition ans Senior Farmers' Market Nutrition Programs CFDA: 10.572, 10.576 Grant Number: 201818Y860441/201818Y86741 201919Y860441/201919Y86741 Grant Period October 1, 2017 - September 30, 2018 October 1, 2018 -September 30, 2019 Compliance Reporting Category Noncompliance Criteria 2 CFR Part 200.512 - Report Submission General established that (1)The audit must be completed, and the data collection form and the reporting package 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 tge due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form forthe fiscal year ended Jine 30, 2019 was not timely submitted to the federal government. Effect AEDA is not in compliance with the reporting requirement set forth by federal regulation, which could affect the future of its federal grants. Cause AEDA has not been able to provide the necessary information for the preparation of the single auidt report on a timely basis inorder to complete its reporting reuirements for the fiscal year 2019. Prior Year Audit Finding 2018-003 Recommendation We recommend AEDA to assemble, before the year-end, an audit team to be in-charge of the single audit process. Also, AEDA's management should implement adequate procedures to timely close its accounting records, subsidiaries and reconciliations, which are esential for the preparation of the fiscal year-end financial statements and reports on an accurate timely manner. Questioned Costs None Management's Response Refer to Grantee's Corrective Action Plan.
Finding 2019-003
Agency: U.S. department of Agriculture Federal Program: WIC Farmers'Market Nutrition ans Senior Farmers' Market Nutrition Programs CFDA: 10.572, 10.576 Grant Number: 201818Y860441/201818Y86741 201919Y860441/201919Y86741 Grant Period October 1, 2017 - September 30, 2018 October 1, 2018 -September 30, 2019 Compliance Reporting Category Noncompliance Criteria 2 CFR Part 200.512 - Report Submission General established that (1)The audit must be completed, and the data collection form and the reporting package 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 tge due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form forthe fiscal year ended Jine 30, 2019 was not timely submitted to the federal government. Effect AEDA is not in compliance with the reporting requirement set forth by federal regulation, which could affect the future of its federal grants. Cause AEDA has not been able to provide the necessary information for the preparation of the single auidt report on a timely basis inorder to complete its reporting reuirements for the fiscal year 2019. Prior Year Audit Finding 2018-003 Recommendation We recommend AEDA to assemble, before the year-end, an audit team to be in-charge of the single audit process. Also, AEDA's management should implement adequate procedures to timely close its accounting records, subsidiaries and reconciliations, which are esential for the preparation of the fiscal year-end financial statements and reports on an accurate timely manner. Questioned Costs None Management's Response Refer to Grantee's Corrective Action Plan.
Finding 2019-002
Agency: U.S. department of Agriculture Federal Program: WIC Farmers'Market Nutrition ans Senior Farmers' Market Nutrition Programs CFDA: 10.572, 10.576 Grant Number: 201818Y860441/201818Y86741 201919Y860441/201919Y86741 Grant Period October 1, 2017 - September 30, 2018 October 1, 2018 -September 30, 2019 Compliance Reporting Category Noncompliance Criteria 2 CFR Part 200.512 - Report Submission General established that (1)The audit must be completed, and the data collection form and the reporting package 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 tge due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form forthe fiscal year ended Jine 30, 2019 was not timely submitted to the federal government. Effect AEDA is not in compliance with the reporting requirement set forth by federal regulation, which could affect the future of its federal grants. Cause AEDA has not been able to provide the necessary information for the preparation of the single auidt report on a timely basis inorder to complete its reporting reuirements for the fiscal year 2019. Prior Year Audit Finding 2018-003 Recommendation We recommend AEDA to assemble, before the year-end, an audit team to be in-charge of the single audit process. Also, AEDA's management should implement adequate procedures to timely close its accounting records, subsidiaries and reconciliations, which are esential for the preparation of the fiscal year-end financial statements and reports on an accurate timely manner. Questioned Costs None Management's Response Refer to Grantee's Corrective Action Plan.
Finding 2019-002
Agency: U.S. department of Agriculture Federal Program: WIC Farmers'Market Nutrition ans Senior Farmers' Market Nutrition Programs CFDA: 10.572, 10.576 Grant Number: 201818Y860441/201818Y86741 201919Y860441/201919Y86741 Grant Period October 1, 2017 - September 30, 2018 October 1, 2018 -September 30, 2019 Compliance Reporting Category Noncompliance Criteria 2 CFR Part 200.512 - Report Submission General established that (1)The audit must be completed, and the data collection form and the reporting package 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 tge due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form forthe fiscal year ended Jine 30, 2019 was not timely submitted to the federal government. Effect AEDA is not in compliance with the reporting requirement set forth by federal regulation, which could affect the future of its federal grants. Cause AEDA has not been able to provide the necessary information for the preparation of the single auidt report on a timely basis inorder to complete its reporting reuirements for the fiscal year 2019. Prior Year Audit Finding 2018-003 Recommendation We recommend AEDA to assemble, before the year-end, an audit team to be in-charge of the single audit process. Also, AEDA's management should implement adequate procedures to timely close its accounting records, subsidiaries and reconciliations, which are esential for the preparation of the fiscal year-end financial statements and reports on an accurate timely manner. Questioned Costs None Management's Response Refer to Grantee's Corrective Action Plan.
Finding 2019-003
Agency: U.S. department of Agriculture Federal Program: WIC Farmers'Market Nutrition ans Senior Farmers' Market Nutrition Programs CFDA: 10.572, 10.576 Grant Number: 201818Y860441/201818Y86741 201919Y860441/201919Y86741 Grant Period October 1, 2017 - September 30, 2018 October 1, 2018 -September 30, 2019 Compliance Reporting Category Noncompliance Criteria 2 CFR Part 200.512 - Report Submission General established that (1)The audit must be completed, and the data collection form and the reporting package 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 tge due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form forthe fiscal year ended Jine 30, 2019 was not timely submitted to the federal government. Effect AEDA is not in compliance with the reporting requirement set forth by federal regulation, which could affect the future of its federal grants. Cause AEDA has not been able to provide the necessary information for the preparation of the single auidt report on a timely basis inorder to complete its reporting reuirements for the fiscal year 2019. Prior Year Audit Finding 2018-003 Recommendation We recommend AEDA to assemble, before the year-end, an audit team to be in-charge of the single audit process. Also, AEDA's management should implement adequate procedures to timely close its accounting records, subsidiaries and reconciliations, which are esential for the preparation of the fiscal year-end financial statements and reports on an accurate timely manner. Questioned Costs None Management's Response Refer to Grantee's Corrective Action Plan.
Finding 2019-003
Agency: U.S. department of Agriculture Federal Program: WIC Farmers'Market Nutrition ans Senior Farmers' Market Nutrition Programs CFDA: 10.572, 10.576 Grant Number: 201818Y860441/201818Y86741 201919Y860441/201919Y86741 Grant Period October 1, 2017 - September 30, 2018 October 1, 2018 -September 30, 2019 Compliance Reporting Category Noncompliance Criteria 2 CFR Part 200.512 - Report Submission General established that (1)The audit must be completed, and the data collection form and the reporting package 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 tge due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form forthe fiscal year ended Jine 30, 2019 was not timely submitted to the federal government. Effect AEDA is not in compliance with the reporting requirement set forth by federal regulation, which could affect the future of its federal grants. Cause AEDA has not been able to provide the necessary information for the preparation of the single auidt report on a timely basis inorder to complete its reporting reuirements for the fiscal year 2019. Prior Year Audit Finding 2018-003 Recommendation We recommend AEDA to assemble, before the year-end, an audit team to be in-charge of the single audit process. Also, AEDA's management should implement adequate procedures to timely close its accounting records, subsidiaries and reconciliations, which are esential for the preparation of the fiscal year-end financial statements and reports on an accurate timely manner. Questioned Costs None Management's Response Refer to Grantee's Corrective Action Plan.
Finding 2019-002
Agency: U.S. department of Agriculture Federal Program: WIC Farmers'Market Nutrition ans Senior Farmers' Market Nutrition Programs CFDA: 10.572, 10.576 Grant Number: 201818Y860441/201818Y86741 201919Y860441/201919Y86741 Grant Period October 1, 2017 - September 30, 2018 October 1, 2018 -September 30, 2019 Compliance Reporting Category Noncompliance Criteria 2 CFR Part 200.512 - Report Submission General established that (1)The audit must be completed, and the data collection form and the reporting package 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 tge due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form forthe fiscal year ended Jine 30, 2019 was not timely submitted to the federal government. Effect AEDA is not in compliance with the reporting requirement set forth by federal regulation, which could affect the future of its federal grants. Cause AEDA has not been able to provide the necessary information for the preparation of the single auidt report on a timely basis inorder to complete its reporting reuirements for the fiscal year 2019. Prior Year Audit Finding 2018-003 Recommendation We recommend AEDA to assemble, before the year-end, an audit team to be in-charge of the single audit process. Also, AEDA's management should implement adequate procedures to timely close its accounting records, subsidiaries and reconciliations, which are esential for the preparation of the fiscal year-end financial statements and reports on an accurate timely manner. Questioned Costs None Management's Response Refer to Grantee's Corrective Action Plan.