Finding 2017 (2021-003)

PUBLIC BUILDINGS AUTHORITY (A Component Unit of the Commonwealth of Puerto Rico) SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2021 Finding Number: 2021-003 Agency: Department of Homeland Security Federal Program: DISASTER GRANTS - PUBLIC ASSISTANCE (Presidentially Declared Disasters) Assistant listing number: 97.036 Grant Number: All grants in SEFA Grant Period: July 1, 2018 through June 30, 2021 Compliance Requirement: Reporting Category: Significant Deficiency Criteria: As per § 200.328 Financial reporting. Unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB- approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information. Condition: During the audit, we noted differences between quarterly reports amounts submitted to grantee agency and expense amounts accrued during the year. PW Number on large projects//Quarter//Quater ended//Deadline//Reported costs as per QPR//Costs as per SEFA 2021 PW-4339-2602 // 3 // 6-30-2021 // 7-31-2021 // - // 502,879 PW-4339-4206 // 3 // 6/30/2021 // 7/31/2021 // - // 1,290,050 PW-4339-5823 // 3 // 6/30/2021 // 7/31/2021 // - // 223,731 PW-4339-7235 // 3 // 6/30/2021 // 7/31/2021 // - // 259,085 PW-4339-8298 // 3 // 6/30/2021 // 7/31/2021 // - // 462,364 PW-4339-8314 // 3 // 6/30/2021 // 7/31/2021 // - // 251,917 PW-4339-8342 // 3 // 6/30/2021 // 7/31/2021 // - // 465,357 Cause: Missing of supporting documentation and underlying data. Effect: Wrong reported amounts could significantly affect program outcomes. Recommendation: To keep, document, file and trace supporting data to support quarterly reports Questioned Costs: None Perspective of the information: The information was not drawn from a statistical sample. Prior Year Finding: No Management response: A specialized funds firm was hired that is working on internal controls to improve the method of accounting of federal funds that meet accounting and FEMA requirements. Responsible Officer: Mr. José R. González De la Vega Estimated Completion Date: To work it on or before December 2023.