FAC Explorer

Finding 1176346 (2025-001)

Material Weakness Repeat Finding
Requirement
G
Questioned Costs
-
Year
2025
Accepted
2026-03-03
Audit: 390167
Organization: Communidad Del Retiro (a Project of the Municipality of San Juan) (PR)
Auditor: DRIVEN P S C

AI Summary

  • Core Issue: The Municipality is using two different accounting systems (ORACLE and MIP) without a formal reconciliation process, leading to compliance challenges.
  • Impacted Requirements: Earmarking requirements are not demonstrably met due to discrepancies between the financial records in ORACLE and MIP.
  • Recommended Follow-up: Establish a formal reconciliation process to align transactions in both systems and ensure compliance with earmarking requirements.

Finding Text

Section III – Federal Award Findings and Questioned Costs Assistance Listing No.: 17.258, 17.259, 17.278 WIOA Cluster Finding No. 2025-001 – Material Weakness on Internal Controls over Compliance and Compliance with Earmarking requirements Condition The Municipality uses ORACLE accounting system to keep financial information for all its operations and is required by the Puerto Rico Department of Economic Development and Commerce, the pass-through grantor agency, to use MIP accounting system to keep the financial information for the program. However, the Municipality has not been able to conclude a reconciliation of the financial transactions amongst both accounting records. As a result, the Municipality was not able to demonstrate, and we were not able to determine compliance with the earmarking requirements of the program using ORACLE. The Municipality meets the earmarking requirements when applied to the balances recorded in the MIP accounting system. Cause The Municipality has not established a formal reconciliation process to ensure that transactions recorded in ORACLE are in agreement with the transactions recorded in MIP. Effect Failure to reconcile the accounting systems increases the risk of noncompliance with the earmarking requirements which in turn may result in potential questioned costs, and the possibility of financial adjustments or sanctions from the Puerto Rico Department of Economic Development and Commerce and/or the federal grantor.

Corrective Action Plan

Recommendation The Municipality must establish and implement a documented reconciliation process between the MIP and ORACLE accounting systems to ensure the accuracy and reliability of financial information used for federal compliance purposes. In addition, implement oversight procedures and periodic monitoring to review and verify the WIOA expenditures to ensure they comply with the earmarking percentage limitations. View of responsible officials Management concurs with the findings as presented and notes that all corrective measures are already substantially implemented. The Municipality remains fully committed to maintaining strong internal controls and continuous improvement in federal grant administration. Responsible official Ana Maria Delgado WIOA Program Fiscal Agent Estimated completion date June 30, 2026

Categories

Matching / Level of Effort / Earmarking Material Weakness

Other Findings in this Audit

  • 1176344 2025-001
    Material Weakness Repeat
  • 1176345 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $33.42M
93.600 Head Start $17.19M
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $10.41M
97.036 Disaster Grants ‐ Public Assistance (Presidentially Declared Disasters) $7.93M
21.027 Treasury's Coronavirus State and Local Fiscal Recovery Funds-American Rescue Plan Act of 2021 $7.44M
93.569 COMMUNITY SERVICES BLOCK GRANT $5.67M
17.278 WIA DISLOCATED WORKER FORMULA GRANTS $4.66M
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $4.17M
84.063 Federal Pell Grant Program (PELL) $2.69M
93.686 ENDING THE HIV EPIDEMIC: A PLAN FOR AMERICA — RYAN WHITE HIV/AIDS PROGRAM PARTS A AND B (B) $2.39M
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $2.21M
15.957 Emergency Supplemental Historic Preservation Fund $1.90M
84.425 Elementary and Secondary Schools Emergency Relief (ESSER) $1.72M
14.267 CONTINUUM OF CARE PROGRAM $1.35M
84.425F PL 116-136 Title VIII Coronavirus Aid, Relief, and Economic Security Act - Education Stabilization Fund - Institutional Funding Request $1.26M
17.259 WIA YOUTH ACTIVITIES $1.18M
95.001 High Intensity Drug Trafficking Areas Program - HIDTA $1.16M
21.027 Treasury's Coronavirus State and Local Fiscal Recovery Funds - American Rescue Plan Act of 2021 (ARPA) - Metropolitan City $950,135
10.555 NATIONAL SCHOOL LUNCH PROGRAM $940,739
10.558 CHILD AND ADULT CARE FOOD PROGRAM $890,154
17.258 WIA ADULT PROGRAM $838,842
20.513 Section 5310 SJUA FY 2022: Special Vehicles for Elderly & Individuals with Disabilities, Preventive Maintenance and Operating Assistance; PRHTA, San Juan UZA, PR $759,988
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $567,331
93.940 Implementation of the Ending the HIV Epidemic Project - San Juan Geographical Jurisdiction $554,459
84.001 Charter School Program - School of Sports $549,512
84.367 IMPROVING TEACHER QUALITY STATE GRANTS $549,512
93.276 Drug Free Communities Support Programs Grants $421,511
16.922 EQUITABLE SHARING PROGRAM $413,352
14.249 SECTION 8 MODERATE REHABILITATION SINGLE ROOM OCCUPANCY $386,776
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $356,389
84.042 TRIO Student Support Services $343,688
84.031S Creating the Center for Academic and Professional Development (CAPD) to Promote Students’ Success $302,271
20.507 FEDERAL TRANSIT_FORMULA GRANTS $265,225
93.865 CHILD HEALTH AND HUMAN DEVELOPMENT EXTRAMURAL RESEARCH $229,089
94.011 Foster Grandparent Program $227,860
16.575 CRIME VICTIM ASSISTANCE $215,651
14.000 Section 8 - Emergency Housing Vouchers (EHV) $205,004
93.044 Special Programs for the Aging-Title III, Part B-Nutrition Services $198,194
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM_SECTION 8 MODERATE REHABILITATION $192,928
93.527 AFFORDABLE CARE ACT (ACA) GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $187,030
93.526 American Rescue Plan Act - Health Center Infrastructure Support $167,965
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $154,654
94.006 CNCS Program Initiative - Americorps $109,232
20.616 ALCOHOL IMPAIRED DRIVING COUNTERMEASURES INCENTIVE GRANTS I $100,198
97.067 Homeland Security Grant Program (HSGP) - Operation Stonegarden (OPSG) $96,776
93.224 FY 2024 Behavioral Health Service Expansion $81,994
21.016 Department of Treasury-Equitable Sharing $78,708
93.224 CONSOLIDATED HEALTH CENTERS (COMMUNITY HEALTH CENTERS, MIGRANT HEALTH CENTERS, HEALTH CARE FOR THE HOMELESS, AND PUBLIC HOUSING PRIMARY CARE) $67,202
93.658 FOSTER CARE_TITLE IV-E $64,176
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $64,019
94.002 Retired and Senior Volunteer Program $61,083
84.033 Federal Work-Study Program (FWS) $60,132
84.007 Supplementary Educational Opportuity Grants $53,704
16.000 US Marshall Services-PR Fugitive Task Force $50,258
20.505 Section 5303/5304-MPO/Planning Activities for FY 2023 ; PRHTA, PR $47,844
93.569 Community Services Block Grant - Supplemental Funds - Fiona $30,500
11.307 Economic Adjustment Assistance - FY 2021 American Rescue Plan Act Travel, Tourism, and Outdoor Recreation Notice of Funding Opportunity $24,500
97.039 FEMA - 4473 - DR - PR - Hazard Mitigation Grant Program $23,700
94.006 CNCS Program Initiative - Americorps - ARPA $22,795
93.600 Head Start - ARPA - American Rescue Plan $20,739
93.600 COVID-19 - Head Start - (P.L. 116-260) $20,577
93.941 HIV DEMONSTRATION, RESEARCH, PUBLIC AND PROFESSIONAL EDUCATION PROJECTS $14,106
45.024 Promotion of the Arts_Grants to Organizations and Individuals $11,098
14.256 Neighborhood Stabilization Program (NSP) $7,291
93.527 FY 2023 Bridge Access Program - Consolidated Appropriations Act, 2022, [P.L. 117-103] $5,130
93.356 HEAD START DISASTER RECOVERY $1,997
20.513 5310 Lapsing Funds SJUA FY2024 Elderly & Individuals Disabilities Operating, Award Name Capital Projects CANOVANAS - CATANO-CIDRA-COROZAL- GURABO - HUMACAO-JUNCOS-MANATI -NARANJITO-SALINAS-SAN JUAN-TOA ALTATOA BAJA-TRUJILLO ALTO & INSTITUTO PSICOPEDAGOGICO PR $1,253
93.048 OPPEA- American Rescue Plan - Special Programs for the Aging-Disaster Assistance for State Units on Aging (SUAs) and Tribal Organizations in Major Disasters Declared by the President $1,067
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $0