Finding Text
Type of finding: Federal Award. Situation: Significant deficiency; compliance with federal regulations. Federal Program: Coronavirus State and Local Fiscal Recovery Fund (ALN 21.027) Compliance Requirements: Reporting Prior-Year(s) Audit Finding(s): None Questioned Costs: None Condition: The Municipality did provide for our review 3 monthly reports required to be submitted to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) for the Coronavirus State Fiscal Recovery Funds. Program regulations state that the report must be submitted monthly. Context: The Municipality submitted to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) nine 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. 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: On three occasions, 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. View of responsible officials: Management concurs with the Finding. We gave instructions to the Fiscal Staff to maintain a dateline control sheet to ascertain that required reports were submitted within the due date and to retain evidence on file about each submission.