FAC Explorer

Finding 1055720 (2023-004)

Material Weakness Repeat Finding
Requirement
G
Questioned Costs
-
Year
2023
Accepted
2024-07-24
Audit: 315825
Organization: Puerto Rico Safe Drinking Water Treatment Revolving Loan Fund (PR)
Auditor: Aquino De Cordova LLC

AI Summary

  • Core Issue: The PRDH lacks adequate financial record segregation, making it difficult to trace funds and ensure compliance with grant restrictions.
  • Impacted Requirements: Noncompliance with 45 CFR sections 92.20(a) and (b) could lead to exceeding expenditure limits and potential administrative sanctions.
  • Recommended Follow-Up: Expand the chart of accounts to improve fund tracking and ensure payroll expenses are recorded accurately for each program activity by October 2024.

Finding Text

Criteria 45 CFR sections 92.20(a) and (b) (1) to (4) establish that: a) A State must expend and account for grant funds in accordance with State laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub grantees and cost-type contractors, must be enough to, 1. Permit preparation of reports required by this part and the statutes authorizing the grant, and 2. Permit the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of other grantees and sub grantees must meet the following standards: 1. Financial reporting. Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or subgrant. 2. Budget control. Actual expenditures or outlays must be compared with budgeted amounts for each grant or subgrant. Financial information must be related to performance or productivity data, including the development of unit cost information whenever appropriate or specifically required in the grant or subgrant agreement. if unit cost data are required, estimates based on available documentation will be accepted whenever possible. Condition We noted the following deficiencies related to the grant awards B04MC40159, B04MC45241: a. The PRDH does not segregate financial records sufficiently in order to permit the tracing of funds to a level of expenditures adequate to establish that such funds have not been used in violation of the percentage restrictions of the grant award. b. We could not evaluate if the program is in compliance with the established earmarking requirements since the expenses were recorded for each of the award components and not the earmarking activity. Cause This situation occurs because the accounting records currently used by the PRDH do not have a reliable system to account for funds awarded to them. The chart of accounts in the financial system is not sufficiently expanded to account for each of the earmark requirements. Effect The PRDH could exceed the established expenditures limits per activity for the grant award. Noncompliance with the earmarking requirements could lead to significant administrative sanctions by the grantor, including reduction in the amounts to be awarded. It could also be interpreted as a failure to achieve program objectives. Questioned Costs None Perspective Information Finding represents a significant problem. The agency will review internal controls to ensure that comply with federal government requirements. Prior Year Audit Finding 2022-004 Recommendation The PRDH must expand the chart of accounts in order to account for the amounts claimed for administrative expenditures independently. This expansion would permit the tracing of funds to a level of expenditure to establish that such funds have not been used in violation of the restrictions and prohibitions of the program as defined in 42 USC 705(a)(3). Also, payroll expenses must be recorded into each of the corresponding program activities, as follows: a) Preventive and primary care services for children. b) Services for children with special health care needs. Views of Responsible Officials The PRDOH agrees with the finding. PRDOH has fixed the segregation of financial records, we have systems in place within our system People Soft 8.4 in which permit the tracing of funds to a level of the expenditures that will be adequate. PRDOH will implement this system for the proposal of 2024. Also, the same system will be used in the new ERP system by the treasury Department that should be starting by July 2025. Responsible Officials Dr. Manuel Vargas Bernier Mrs. Diana Ferrer Rivera Estimate Date of Completion Program Director Senior Accountant 787-765-2929 ext. 4583 787-765-2929 ext. 4551 Implementation is expected to be completed on or before the end of October 2024.

Categories

Matching / Level of Effort / Earmarking Reporting

Other Findings in this Audit

  • 479252 2023-001
    Material Weakness Repeat
  • 479253 2023-001
    Material Weakness Repeat
  • 479254 2023-001
    Material Weakness Repeat
  • 479255 2023-001
    Material Weakness Repeat
  • 479256 2023-001
    Material Weakness Repeat
  • 479257 2023-001
    Material Weakness Repeat
  • 479258 2023-001
    Material Weakness Repeat
  • 479259 2023-001
    Material Weakness Repeat
  • 479260 2023-001
    Material Weakness Repeat
  • 479261 2023-001
    Material Weakness Repeat
  • 479262 2023-001
    Material Weakness Repeat
  • 479263 2023-001
    Material Weakness Repeat
  • 479264 2023-002
    Significant Deficiency Repeat
  • 479265 2023-002
    Significant Deficiency Repeat
  • 479266 2023-002
    Significant Deficiency Repeat
  • 479267 2023-002
    Significant Deficiency Repeat
  • 479268 2023-002
    Significant Deficiency Repeat
  • 479269 2023-002
    Significant Deficiency Repeat
  • 479270 2023-002
    Significant Deficiency Repeat
  • 479271 2023-002
    Significant Deficiency Repeat
  • 479272 2023-002
    Significant Deficiency Repeat
  • 479273 2023-002
    Significant Deficiency Repeat
  • 479274 2023-002
    Significant Deficiency Repeat
  • 479275 2023-002
    Significant Deficiency Repeat
  • 479276 2023-003
    Material Weakness
  • 479277 2023-003
    Material Weakness
  • 479278 2023-004
    Material Weakness Repeat
  • 479279 2023-005
    Material Weakness Repeat
  • 479280 2023-005
    Material Weakness Repeat
  • 479281 2023-005
    Material Weakness Repeat
  • 479282 2023-006
    Material Weakness Repeat
  • 479283 2023-006
    Material Weakness Repeat
  • 479284 2023-006
    Material Weakness Repeat
  • 479285 2023-006
    Material Weakness Repeat
  • 479286 2023-006
    Significant Deficiency Repeat
  • 479287 2023-006
    Significant Deficiency Repeat
  • 479288 2023-006
    Significant Deficiency Repeat
  • 479289 2023-006
    Significant Deficiency Repeat
  • 479290 2023-006
    Significant Deficiency Repeat
  • 479291 2023-006
    Significant Deficiency Repeat
  • 479292 2023-006
    Significant Deficiency Repeat
  • 479293 2023-006
    Significant Deficiency Repeat
  • 1055694 2023-001
    Material Weakness Repeat
  • 1055695 2023-001
    Material Weakness Repeat
  • 1055696 2023-001
    Material Weakness Repeat
  • 1055697 2023-001
    Material Weakness Repeat
  • 1055698 2023-001
    Material Weakness Repeat
  • 1055699 2023-001
    Material Weakness Repeat
  • 1055700 2023-001
    Material Weakness Repeat
  • 1055701 2023-001
    Material Weakness Repeat
  • 1055702 2023-001
    Material Weakness Repeat
  • 1055703 2023-001
    Material Weakness Repeat
  • 1055704 2023-001
    Material Weakness Repeat
  • 1055705 2023-001
    Material Weakness Repeat
  • 1055706 2023-002
    Significant Deficiency Repeat
  • 1055707 2023-002
    Significant Deficiency Repeat
  • 1055708 2023-002
    Significant Deficiency Repeat
  • 1055709 2023-002
    Significant Deficiency Repeat
  • 1055710 2023-002
    Significant Deficiency Repeat
  • 1055711 2023-002
    Significant Deficiency Repeat
  • 1055712 2023-002
    Significant Deficiency Repeat
  • 1055713 2023-002
    Significant Deficiency Repeat
  • 1055714 2023-002
    Significant Deficiency Repeat
  • 1055715 2023-002
    Significant Deficiency Repeat
  • 1055716 2023-002
    Significant Deficiency Repeat
  • 1055717 2023-002
    Significant Deficiency Repeat
  • 1055718 2023-003
    Material Weakness
  • 1055719 2023-003
    Material Weakness
  • 1055721 2023-005
    Material Weakness Repeat
  • 1055722 2023-005
    Material Weakness Repeat
  • 1055723 2023-005
    Material Weakness Repeat
  • 1055724 2023-006
    Material Weakness Repeat
  • 1055725 2023-006
    Material Weakness Repeat
  • 1055726 2023-006
    Material Weakness Repeat
  • 1055727 2023-006
    Material Weakness Repeat
  • 1055728 2023-006
    Significant Deficiency Repeat
  • 1055729 2023-006
    Significant Deficiency Repeat
  • 1055730 2023-006
    Significant Deficiency Repeat
  • 1055731 2023-006
    Significant Deficiency Repeat
  • 1055732 2023-006
    Significant Deficiency Repeat
  • 1055733 2023-006
    Significant Deficiency Repeat
  • 1055734 2023-006
    Significant Deficiency Repeat
  • 1055735 2023-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $3.83B
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $177.94M
93.767 Children's Health Insurance Program $143.99M
93.917 Hiv Care Formula Grants $28.34M
93.994 Maternal and Child Health Services Block Grant to the States $15.46M
93.268 Immunization Cooperative Agreements $7.73M
93.069 Public Health Emergency Preparedness $6.71M
10.558 Child and Adult Care Food Program $6.26M
93.940 Hiv Prevention Activities_health Department Based $6.24M
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $2.60M
93.889 National Bioterrorism Hospital Preparedness Program $2.50M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $2.48M
93.991 Preventive Health and Health Services Block Grant $2.09M
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $2.00M
84.181A Special Education-Grants for Infants and Families $1.88M
93.255 Children's Hospitals Graduate Medical Education Payment Program $1.39M
93.136 Injury Prevention and Control Research and State and Community Based Programs $1.20M
93.235 Affordable Care Act (aca) Abstinence Education Program $1.18M
93.777 State Survey and Certification of Health Care Providers and Suppliers (title Xviii) Medicare $958,075
84.181 Special Education-Grants for Infants and Families $948,583
93.377 Prevention and Control of Chronic Disease and Associated Risk Factors in the U.s. Affiliated Pacific Islands, U.s. Virgin Islands, and P. R. (b) $825,561
66.432 State Public Water System Supervision $706,328
93.944 Human Immunodeficiency Virus (hiv)/acquired Immunodeficiency Virus Syndrome (aids) Surveillance $667,263
66.468 Capitalization Grants for Drinking Water State Revolving Funds $646,811
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $573,302
93.336 Behavioral Risk Factor Surveillance System $540,085
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $405,413
93.070 Environmental Public Health and Emergency Response $332,433
20.607 Alcohol Open Container Requirements $301,358
93.197 Childhood Lead Poisoning Prevention Projects_state and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $284,940
93.270 Adult Viral Hepatitis Prevention and Control $263,023
93.251 Early Hearing Detection and Intervention $262,404
93.130 Cooperative Agreements to States/territories for the Coordination and Development of Primary Care Offices $225,018
93.236 Grants to States to Support Oral Health Workforce Activities $206,120
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $157,980
93.314 Early Hearing Detection and Intervention Information System (ehdi-Is) Surveillance Program $157,808
93.946 Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative Programs $153,380
93.998 Autism and Other Developmental Disabilities, Surveillance, Research, and Prevention $115,166
93.387 National and State Tobacco Control Program (b) $74,316
14.241 Housing Opportunities for Persons with Aids $67,349
93.110 Maternal and Child Health Federal Consolidated Programs $59,893
93.967 Cdc's Collaboration with Academia to Strengthen Public Health $28,450
93.791 Money Follows the Person Rebalancing Demonstration $19,843
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $18,871
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $12,384
93.008 Medical Reserve Corps Small Grant Program $11,960
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $4,309
93.556 Promoting Safe and Stable Families $3,718
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $20
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $-168
93.074 Hospital Preparedness Program (hpp) and Public Health Emergency Preparedness (phep) Aligned Cooperative Agreements $-27,562