Finding Text
Condition:
The Municipality submitted to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) five out of twelve reports for the Coronavirus State Fiscal Recovery Funds - Use of Funds Report for all the expenses incurred under the Assistance Program to Municipalities instead of submitting the report on a monthly basis as required by program regulations.
Context:
The Municipality received $750,843 under the Municipal Strengthening Fund Program during the fiscal year ended on June 30, 2024. The Municipality used $750,843 in program funds to cover expenses related to the public health emergency caused by the Covid-19 pandemic.
Criteria:
Under the Municipal Strengthening Fund Program, the Municipality must report to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) program expenses for the month, 15 days after the end of the month.
Cause:
The Municipality did not submit the Use of Funds Report to the Aafaf by the 15th day of the following month; the expenses were incurred.
Effect:
The Municipality is not in compliance with its grant awards.
Auditor’s recommendation:
The Municipality should implement internal controls and procedures to assure that the required reports are completed and submitted in a timely manner as per program regulations.
Views of Responsible officials and corrective actions:
The Finance Director of the Municipality of Sabana Grande submitted 5 out of 12 reports for the Coronavirus State Fiscal Recovery Funds - Use of Funds Reports indicating that there were months with no expenses reported. Even though, the Municipality will be implementing the internal controls and procedures to assure that the required reports are completed and submitted on a monthly basis.
Audit Status:
Partially Resolved