Finding Text
Finding number: 2025-001 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Puerto Rico Department of the Family – Administracion para el Cuidado y Desarrollo Integral de la Niñez (ACUDEN) Federal Program: 93.575 – Child Care and Development Block Grant Compliance Requirement: Special Test and Provisions – Review of the grant agreement Type of finding: Instance of noncompliance Criteria: Under Section 4.4 of the Delegation of Funds Contract, the Organization was required to maintain a fixed enrollment of 61 eligible participants (10 Infant/Maternal, 12 Preschool, 25 School-Age, 14 Special Needs) under the ACUDEN Child Care program. Section 4.6 restricts the use of delegated exclusively to the children enrolled within these categories, and Section 9.1.L.i requires a corresponding adjustment to the funds request or a chargeback when enrollment is not complete. Condition: During the award period, the Organization did not maintain the required minimum enrollment of 61 eligible participants. The organization maintained an enrollment range consisting of 54-60 participants as of December 31, 2025. This condition was independently identified both by the Organization's independent auditors through a special test of compliance and by ACUDEN's own program monitoring. Context: The special test consisted of comparing the Organization's monthly enrollment reports (Informe de matrícula y Asistencia Mensual, required under Section 9.1.L.i of the contract) against the 61-participant minimum required under Section 4.4 for each month of the award period tested. The condition is not isolated: enrollment did not meet the required minimum in any of the months tested, and is consistent with the deficiency identified in ACUDEN's own compliance monitoring for the same award. Cause: The Organization was unable to enroll and/or retain the number of eligible participants required under the contract for the categories indicated above. The root cause was a shortfall in participant recruitment: the Organization did not enroll a sufficient number of eligible children to reach the 61-participant minimum required by Section 4.4 of the contract. Effect: The Organization received quarterly fund advances to provide service to 61 funded participant slots that were not fully utilized, resulting in funds advanced in excess of funds obligated. Questioned cost: 0 Identification as a repeat finding: Not applicable. Recommendation: We recommend the Organization strengthen recruitment, waitlist management, and enrollment-monitoring procedures to consistently meet the minimum participant levels required under the ACUDEN contract. Views of responsible officials and planned corrective action: Management concurs with the finding. A Corrective Action Plan (CAP) addressing the root cause and the steps to achieve and sustain the required minimum enrollment is being issued separately in accordance with 2 CFR 200.511 and Section 17.3 of the contract.