Finding 1223903 (2024-004)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2026-07-16
Audit: 407316
Organization: Municipality of Ciales (PR)

AI Summary

  • Core Issue: The Municipality misused Coronavirus State and Local Fiscal Recovery Funds for activities that are not allowed.
  • Impacted Requirements: $80,000 is owed back to the Recovery Funds due to financing unallowable activities.
  • Recommended Follow-Up: Ensure proper use of funds in the future and initiate repayment of the $80,000 owed.

Finding Text

During the fiscal year the Municipality used Coronavirus State and Local Fiscal Recovery Funds in unallowable activities. The funds were used to finance certain activities of the General Fund and other federal programs. The General Fund and the other programs due $80,000 to the Coronavirus State and Local Fiscal Recovery Funds as of June 30, 2024.

Corrective Action Plan

Management acknowledges the finding and concurs with the recommendation. The Municipality recognizes that certain expenditures totaling $80,000 were charged to the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) that were subsequently determined not to meet the program's allowable use requirements. Management has evaluated the questioned costs and has initiated the necessary actions to ensure that the Coronavirus State and Local Fiscal Recovery Funds are reimbursed from non-federal sources, as applicable, and that the program funds are restored for eligible activities. In addition, the Municipality has strengthened its internal control procedures over the administration of federal awards. Going forward, all expenditures charged to the CSLFRF program will be subject to an enhanced review process by the Federal Programs Director and the Finance Department to verify eligibility and compliance with the applicable federal requirements before payment or reimbursement is processed. Management will also provide additional training to personnel responsible for the administration of federal programs regarding allowable costs and applicable federal regulations. The Municipality is committed to maintaining compliance with the requirements governing the Coronavirus State and Local Fiscal Recovery Funds and will continue to improve its internal controls to prevent similar findings in the future.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1223895 2024-003
    Material Weakness Repeat
  • 1223896 2024-002
    Material Weakness Repeat
  • 1223897 2024-003
    Material Weakness Repeat
  • 1223898 2024-003
    Material Weakness Repeat
  • 1223899 2024-003
    Material Weakness Repeat
  • 1223900 2024-003
    Material Weakness Repeat
  • 1223901 2024-003
    Material Weakness Repeat
  • 1223902 2024-003
    Material Weakness Repeat
  • 1223904 2024-005
    Material Weakness Repeat
  • 1223905 2024-003
    Material Weakness Repeat
  • 1223906 2024-006
    Material Weakness Repeat
  • 1223907 2024-007
    Material Weakness Repeat
  • 1223908 2024-003
    Material Weakness Repeat
  • 1223909 2024-003
    Material Weakness Repeat
  • 1223910 2024-003
    Material Weakness Repeat
  • 1223911 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.73M
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $755,515
21.019 CORONAVIRUS RELIEF FUND $471,434
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $396,687
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $332,094
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $264,857
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $80,223
20.205 HIGHWAY PLANNING AND CONSTRUCTION $66,364
10.558 CHILD AND ADULT CARE FOOD PROGRAM $37,298
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $2,942