Finding Text
Finding Reference 2024-007
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Agency: Puerto Rico Department of Family
Program: Child Care and Development Block Grant (ALN 93.575)
Compliance Requirement: Reporting (L)
Type of Finding: Significant Deficiency in Internal Controls (SD), Instance of Noncompliance (NC)
Statement of Condition During our audit procedures, we noted that the Program did not submit the annual closing reports to the pass-through entity, as required by the contract agreement.
Criteria 45 CFR Part 98.67 (c) Fiscal control and accounting procedures shall be sufficient to permit: (1) Preparation of reports required by the Secretary under this subpart and under subpart H; and (2) The tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the provisions of this part.
Also, the contract agreement states in Clause thirteen (13) that the Municipality is responsible for the presentation of the trial balance and annual partial closing report fifteen (15) calendar days after the end of the contract. Ninety (90) days after, the Municipality should liquidate all obligations and present to the pass-through entity the final annual closing report (CC-006).
Cause of Condition The Program does not have effective internal controls to ensure that the required reports and supporting documentation are submitted to the pass-through agency in the requested time frame.
Effect of Condition The Program is not in compliance with 45 CFR Part 98.67 Fiscal Requirements (c) (1) (2).
Recommendation Management should take the necessary steps to ensure that the Program submits its financial reports within the time frame required by the state pass-through agency.
Questioned Cost None.
Prior Year Finding No.
Views of Responsible Officials and Planned Corrective Action We concur with the finding. The Municipality appointed a person to work on all the required reports and instructed them on the deadlines that apply; once all reports are submitted, evidence will be provided.
Implementation Date: June 30, 2025
Responsible Person: Carmen I. López
Interim Finance Director