FAC Explorer

Audit 8538

FY End
2020-06-30
Total Expended
$813,206
Findings
4
Programs
2
Organization: Agricultural Enterprises Development Administration (PR)
Year: 2020 Accepted: 2023-12-27
Auditor: Valdes Garcia Marin & Martinez

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6603 2020-002 Significant Deficiency Yes L
6604 2020-003 - Yes L
583045 2020-002 Significant Deficiency Yes L
583046 2020-003 - Yes L

Programs

ALN Program Spent Major Findings
10.576 Senior Farmers Market Nutrition Program $440,868 Yes 2
10.572 Wic Farmers' Market Nutrition Program (fmnp) $372,338 - 0

Contacts

Name Title Type
RTCZAHZ2UVJ6 Idsa Ramos Auditee
7877251600 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, 2020. 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. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.AEDA's reporting entity is defined in Note 1 to the basic financial statements. All federal financial awards received directly from a federal agency as well as federal financial awards passed-through other government agencies, if any, are included in the Schedule.
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 under 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 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 columns.

Finding Details

Finding 2020-002
Agency: U.S. department of Agriculture Federal Program: Senior Farmers' Market Nutrition Programs 10.576 Grant Number: 201919Y831341 Grant Period October 1, 2018- September 30, 2019 Compliance Requirement: Reporting Category: Internal Control Weakness and Noncompliance Criteria: CFR Parts 249.23 Records and report. (a) Recordkeeping requirements. Each State agency shall maintain full and complete records concering SFMNP operations. Such records sahll comply with 2 CFR Part 200, Subpart D and USDA implementing regulations 2 CFR Part Part 415 and the following requirements: (1) Records shall include, but not limited to, information pertaining to financial operations, SFMNP coupon issuance and redemption, equipment purchases and inventory, nutrition education, and civil rights procedures, (b) Financial and recipient records, State agencies shall submit financial and SFMNP performance data on a yearly basis as specified by FNS and required by section 17(m)(8) of the CAN. Such information shall include but shall not be limited to: (1) Number and type of recipients (Federal and non-Federal). (2) Value of coupons issued, (3) Value of coupons redeemed.(c) Source documentation. To be acceptable for audit purposes, all financial and SFMNP performance reports shall be traceable to source documentation. Condition As part of our audit procedures over financial reporting requirement, we requested the SFMNP closeout report, for the program year ended September 30, 2019, (Form FNS-683) We found the following exceptions: the administrative expenses were not reconciled to the general ledger accounts. Wages expenses reported were not allocated between WIC Farmers' Market Nutrition Program (WIC-FMNP) and Senior Farmers' Market Nutrition Program (SFMNP) in accordance with the percentages established in 2020 SFMNP and FMNP Consolidated State Plan of Operations. They were allocated on a 88% to 12% respectively, instead of 62% for WIC and 38% for SFMNP. Effect AEDA's noncompliance may result in an administrative sactions by the grantor agency and in costs disallowances, if applicable. The lack of reconciliation does not allow for a proper distribution of State and Federal resources, accurate reporting and detection of possible irregularities on a timely basis. Also, inaccurate reporting exposes AEDA to federal sanctions and prevents the Federal awarding agency and AEDA's management from proper monitoring of federal program financial activities, assessing the achievements of activities, and evaluating the grant award for subsequent years. Cause AEDA has not established proper internal control procedures to reconcile the amounts reported on the closeout reports to the amounts reported in its accounting system. Context: As part of our audit procedures over reporting requirement, we evaluated the SFMNP closeout reports (Form FNS-683A), for the program year ended September 30, 2019. Prior Year audit finfing 2019-002 Recommendation Management should take appropriate actions to reconcile on a timely manner SFMNP related reports and supporting documentation with the accounting records in order to generate accurate, current, reliable, and complete reports. This may require to either maintain or strengthen effective control to ascertain full and complete records concerning SFMNP operations. Questioned costs None Management's Response Refer to Grantee's Corrective Action Plan.
Finding 2020-003
Agency: U.S. department of Agriculture Federal Program: Senior Farmers' Market Nutrition Programs CFDA: 10.576 Grant Number: 201919Y831341 Grant Period 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 for the fiscal year ended June 30, 2020 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 in order to complete its reporting reuirements for the fiscal year 2020. Prior Year Audit Finding 2019-003 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 2020-002
Agency: U.S. department of Agriculture Federal Program: Senior Farmers' Market Nutrition Programs 10.576 Grant Number: 201919Y831341 Grant Period October 1, 2018- September 30, 2019 Compliance Requirement: Reporting Category: Internal Control Weakness and Noncompliance Criteria: CFR Parts 249.23 Records and report. (a) Recordkeeping requirements. Each State agency shall maintain full and complete records concering SFMNP operations. Such records sahll comply with 2 CFR Part 200, Subpart D and USDA implementing regulations 2 CFR Part Part 415 and the following requirements: (1) Records shall include, but not limited to, information pertaining to financial operations, SFMNP coupon issuance and redemption, equipment purchases and inventory, nutrition education, and civil rights procedures, (b) Financial and recipient records, State agencies shall submit financial and SFMNP performance data on a yearly basis as specified by FNS and required by section 17(m)(8) of the CAN. Such information shall include but shall not be limited to: (1) Number and type of recipients (Federal and non-Federal). (2) Value of coupons issued, (3) Value of coupons redeemed.(c) Source documentation. To be acceptable for audit purposes, all financial and SFMNP performance reports shall be traceable to source documentation. Condition As part of our audit procedures over financial reporting requirement, we requested the SFMNP closeout report, for the program year ended September 30, 2019, (Form FNS-683) We found the following exceptions: the administrative expenses were not reconciled to the general ledger accounts. Wages expenses reported were not allocated between WIC Farmers' Market Nutrition Program (WIC-FMNP) and Senior Farmers' Market Nutrition Program (SFMNP) in accordance with the percentages established in 2020 SFMNP and FMNP Consolidated State Plan of Operations. They were allocated on a 88% to 12% respectively, instead of 62% for WIC and 38% for SFMNP. Effect AEDA's noncompliance may result in an administrative sactions by the grantor agency and in costs disallowances, if applicable. The lack of reconciliation does not allow for a proper distribution of State and Federal resources, accurate reporting and detection of possible irregularities on a timely basis. Also, inaccurate reporting exposes AEDA to federal sanctions and prevents the Federal awarding agency and AEDA's management from proper monitoring of federal program financial activities, assessing the achievements of activities, and evaluating the grant award for subsequent years. Cause AEDA has not established proper internal control procedures to reconcile the amounts reported on the closeout reports to the amounts reported in its accounting system. Context: As part of our audit procedures over reporting requirement, we evaluated the SFMNP closeout reports (Form FNS-683A), for the program year ended September 30, 2019. Prior Year audit finfing 2019-002 Recommendation Management should take appropriate actions to reconcile on a timely manner SFMNP related reports and supporting documentation with the accounting records in order to generate accurate, current, reliable, and complete reports. This may require to either maintain or strengthen effective control to ascertain full and complete records concerning SFMNP operations. Questioned costs None Management's Response Refer to Grantee's Corrective Action Plan.
Finding 2020-003
Agency: U.S. department of Agriculture Federal Program: Senior Farmers' Market Nutrition Programs CFDA: 10.576 Grant Number: 201919Y831341 Grant Period 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 for the fiscal year ended June 30, 2020 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 in order to complete its reporting reuirements for the fiscal year 2020. Prior Year Audit Finding 2019-003 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.