Finding Text
Federal Agency: U.S. Department of Homeland Security Pass-Through Agency: Central Office of Recovery, Reconstruction and Resiliency of Puerto Rico (COR3) Program: Disaster Grants – Public Assistance (Presidentially-Declared Disaster) (ALN 97.036) Compliance Requirement: Reporting (L) Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition In our Reporting Test, we evaluated the Quarterly Progress Reports of a total of five (5) projects for two quarters of fiscal year 2022-2023. Our audit procedures revealed that Quarterly Progress Reports were not submitted for one of the quarters for four of the five projects evaluated. Criteria 2 CFR 200.328 (c) states that the recipient or subrecipient must submit financial reports as required by the Federal award. […] Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period. 2 CFR 200.329 (c) (1) states that the recipient or subrecipient must submit performance reports as required by the Federal award. […] Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period. […] 2 CFR 200.332 (b) (3) states that any additional requirements that the pass-through entity imposes on the subrecipient for the pass-through entity to meet its responsibilities under the Federal award. This includes information and certifications […] required for submitting financial and performance reports that the pass-through entity must provide to the Federal agency. 44 CFR 206.204 (f) states that progress reports will be submitted by the recipient to the Regional Administrator quarterly. […] COR3, as a pass-through entity, requires Subrecipients to complete and submit a quarterly progress report for each Project Worksheet (“PW”) through the Disaster Recovery Solution (“DRS”) Platform. This information is then submitted to the Federal Emergency Management Agency (FEMA). Quarterly Progress Reports cannot be edited or submitted after the deadline. Cause of Condition The Municipality did not manage time effectively to complete the Quarterly Progress Reports as required by the Federal award. Effect of Condition The Municipality failed in the submission of Quarterly Progress Reports as required by the Federal award. Recommendation We recommend the Program Administrators manage time effectively to complete the Quarterly Progress Reports timely. Questioned Costs None. Views of Responsible Officials and Planned Corrective Action We will give instructions to the accounting staff in charge of the preparation of the quarterly progress reports of the Program, in order to comply with the FEMA reporting requirements. Responsible Official: Mrs. Irma M. Vargas Aguirre, Finance and Budget Director Implementation Date: December 31, 2025