FAC Explorer

Finding 1095820 (2023-001)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2025-01-15
Audit: 338266
Organization: Centro Maria Mazzarello Alespi (PR)
Auditor: Psv & CO Psc

AI Summary

  • Issue: CMMA mistakenly paid the PRTD for taxes on contractor services that are exempt under Puerto Rico's tax laws.
  • Requirement: CMMA must retain 10% of each contractor invoice until the building is completed, inspected, and accepted.
  • Follow-up: Review payment processes to prevent future errors and ensure compliance with tax withholding regulations.

Finding Text

Centro María Mazzarello Alespi (CMMA) issued two payments to the Puerto Rico Treasury Department (PRTD) for professional services tax withheld to the building contractor by error. Puerto Rico's Internal Revenue Code exempts payments made to building contractors from income tax withholding. However, CMMA was required to retain a 10% of each invoice (Certification) until the building has been finished, inspected, and accepted.

Categories

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Other Findings in this Audit

  • 519378 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $909,415