FAC Explorer

Finding 23495 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 19310
Organization: Autonomous Municipality of Caguas (PR)
Auditor: CPA Diaz-Martinez Psc

AI Summary

  • Core Issue: The Municipality incorrectly reported vendor contracts instead of required subawards, leading to non-compliance with federal reporting standards.
  • Impacted Requirements: Reporting of first-tier subawards of $30,000 or more must be submitted to the FSRS by the end of the month following the obligation.
  • Recommended Follow-Up: Provide training for staff on FSRS reporting requirements and implement controls to ensure proper tracking of contracts that need to be reported.

Finding Text

FEDERAL PROGRAM (ALN 14.218) COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AWARD NUMBER B21MC72001 (Federal Award Year 2021) COMPLIANCE REQUIREMENT REPORTING TYPE OF FINDING NONCOMPLIANCE AND SIGNIFICANT DEFICIENCY CRITERIA In accordance with 2 CFR Appendix A to Part 170, I(a), unless a recipient of grants or cooperative agreements is exempt, they are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The non-Federal entity or Federal agency must report each obligating action to http://www.fsrs.gov. For subaward information, report no later than the end of the month following the month in which the obligation was made. STATEMENT OF CONDITION As part of our audit procedures, the Municipality include information from contractors instead of subrecipient in the report submitted June 30, 2022. QUESTIONED COSTS Not Applicable PERSPECTIVE INFORMATION We received from the Municipality the report made for the month of June 30, 2022. We noted that they included all contracts from vendors, instead of Federal awards made to a subrecipient under which the total funding is anticipated to be equal or exceed $30,000 in Federal funding. The total transactions examined were five (5) contracts with vendors in the amount of $271,032. STATEMENT OF CAUSE Municipality staff had the understanding that they must include all contracts or purchase orders greater than $30,0000 in the FFATA report. POSSIBLE ASSERTED EFFECT The Municipality is in non-compliance with the requirements to report through the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) platform. This breach does not allow for the transparency that this report requires. IDENTIFICATION OF REPEAT FINDING This is not a repeated Finding. RECOMMENDATIONS We recommend that the Municipality provide training and technical assistance to the personnel that prepares and submits the contracts that meet the requirements to be reported on the FSRS portal. In addition, controls should be in place in order to be able to keep track of the type of contract they need to report.

Corrective Action Plan

The Municipality will be evaluating possible training alternatives so that personnel from different Offices such as the Planning Office, Municipal Secretary, Internal Audit and Department of Housing can take them. In turn, the following link will be provided: https://www. Hudexchange.infor/trainings/cources/ffata-subaward-reporting-system-webinar-for-cdbg-grantees1/, which is a one hour training course that is on the HUD Exchange platform on the FFATA Reporting System. IMPLEMENTATION DATE During fiscal year 2023 RESPONSIBLE PERSON Zaid Diaz Isaac, Program Director

Categories

Subrecipient Monitoring Procurement, Suspension & Debarment Reporting Significant Deficiency

Other Findings in this Audit

  • 23496 2022-002
    Significant Deficiency
  • 599937 2022-001
    Significant Deficiency
  • 599938 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $10.28M
14.871 Section 8 Housing Choice Vouchers $7.92M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $5.63M
93.356 Head Start Disaster Recovery $1.85M
93.600 Head Start $1.38M
66.458 Capitalization Grants for Clean Water State Revolving Funds $929,005
21.019 Coronavirus Relief Fund $850,565
10.558 Child and Adult Care Food Program $798,413
14.218 Community Development Block Grants/entitlement Grants $622,149
14.239 Home Investment Partnerships Program $555,801
11.307 Economic Adjustment Assistance $552,525
84.287 Twenty-First Century Community Learning Centers $516,942
20.507 Federal Transit_formula Grants $455,505
97.067 Homeland Security Grant Program $306,078
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $268,941
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $257,200
20.527 Public Transportation Emergency Relief Program $166,293
14.231 Emergency Solutions Grant Program $139,774
93.575 Child Care and Development Block Grant $111,956
84.002 Adult Education - Basic Grants to States $109,780
14.879 Mainstream Vouchers $75,020
93.053 Nutrition Services Incentive Program $65,299
94.006 Americorps $65,059
16.575 Crime Victim Assistance $63,605
16.835 Body Worn Camera Policy and Implementation $58,251
16.034 Coronavirus Emergency Supplemental Funding Program $39,281
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $34,475
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $24,485
93.558 Temporary Assistance for Needy Families $16,936
20.600 State and Community Highway Safety $11,530
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $7,697
20.616 National Priority Safety Programs $4,574