FAC Explorer

Finding 332 (2022-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-10-17
Audit: 676
Organization: Economic Development Bank for Puerto Rico (PR)
Auditor: Landa Umpierre Psc

AI Summary

  • Issue: The Bank failed to validate or reconcile grant amounts between reports and accounting records.
  • Impacted Requirements: Compliance with proper financial reporting and reconciliation procedures.
  • Recommended Follow-Up: Implement procedures to ensure accurate validation and reconciliation of grant amounts.

Finding Text

We compared the amount of grants awarded as per the Administrative and Performance Reports submitted to the PRDOH with the amount reported in the Schedule of Expenditures and Federal Awards, and noted that the Bank did not implement procedures to validate and / or reconcile the amounts as presented in the Administrative and Performance Reports with the balances as per the Bank’s accounting records.

Corrective Action Plan

The presentation of the CDBG-DR fund was caused by the significant time and effort that requires the accounting of the new fund and the understaffing of the accounting department. Management is making arrangements to modify accounting system and procedures to ascertain all transactions related to the CDBG-DR Fund is presented in the Bank's general ledger on a monthly basis. The new reporting format will be implemented by September 2023. Also, the Bank is working toward recruiting additional personnel for the accounting department.

Categories

Reporting

Other Findings in this Audit

  • 333 2022-003
    Material Weakness
  • 334 2022-004
    Material Weakness
  • 335 2022-005
    Material Weakness Repeat
  • 336 2022-006
    - Repeat
  • 337 2022-007
    Significant Deficiency Repeat
  • 576774 2022-002
    Material Weakness Repeat
  • 576775 2022-003
    Material Weakness
  • 576776 2022-004
    Material Weakness
  • 576777 2022-005
    Material Weakness Repeat
  • 576778 2022-006
    - Repeat
  • 576779 2022-007
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $67.49M