Finding 33739 (2022-001)

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Requirement
L
Questioned Costs
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Year
2022
Accepted
2023-09-28
Audit: 29539
Auditor: Galindez LLC

AI Summary

  • Core Issue: The Organization submitted a report for federal funds 371 days late, violating the 30-day reporting requirement.
  • Impacted Requirements: Compliance with Worker Relief Program guidelines is essential to avoid potential administrative sanctions from the grantor.
  • Recommended Follow-Up: The Organization should regularly review federal award guidelines and consult with AAFAF for clarity on reporting requirements.

Finding Text

Finding No. 2022-001 - Reporting Federal Program 21.027 - Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency U.S. Department of Treasury Pass-through Entity Puerto Rico Department of Treasury Criteria As provided by the Worker Relief Program guidelines, all grantees receiving payment for their personnel must submit a report within 30 days of the date the applicant/grantee received its award detailing use of funds and evidencing that all premium payments were made. Condition As a result of our audit procedures, we noted one instance in which the Organization reported the use of funds to the federal grantor after the required timeframe limit as follows: Fund Required Date Reported Date Past Due Days Coronavirus State and Local Fiscal Recovery Funds (Worker Relief Program) March 16, 2022 March 22, 2023 371 Context As part of the reporting test for the Worker Relief Program, we noted that report required to be submitted 30 days after the funds were received and used, was submitted after the due date. Cause The Organization was not aware of the requirement, since it did not receive a request from AAFAF specifying that it had to submit a breakdown of the use of funds within 30 days of the date the applicant/grantee received its award. During the year December 31, 2022, the Organization submitted all other reports requested by AAFAF. Effect Failure to make the required reports submissions may be considered by the grantor as a noncompliance with the criteria mentioned above and could lead to administrative sanctions by the grantor. Questioned Cost None. Identification of a repeat finding None. Recommendation The Organization should continue to monitor and review guidelines for federal awards under the CARES Act and other legislation to ensure it is up-to-date on the applicable requirements and changes therein. In addition, the Organization should consider consulting with AAFAF when available guidance may be subject to interpretation or when new awards, if any, are received. Views of responsible officials and corrective action plan The Organization?s management agrees with this finding. Please refer to the corrective action plan on page 55.

Corrective Action Plan

Finding No. 2022-001 Reporting Name (s) of the Contact Person (s) Responsible for Corrective Action Carlos M. Valentin Borges - Finance Director Condition Found As a result of our audit procedures, we noted one instance in which the Organization reported the use of funds to the federal grantor after the required timeframe limit as follows: Fund Required DateReported Date Past Due Days Coronavirus State and Local Fiscal Recovery Funds (Worker Reliefe Program) 3/16/2022 3/22/2023 371 Company Response The Organization agrees with the finding. Corrective Action Plan At Saint Luke?s Memorial Hospital, Inc. we?ve been very careful regarding the monthly required reporting. However, due to the fact is the first time the Organization receives such funds and due to the learning process, we incurred in an involuntary mistake in report submission. Action was taken regarding personnel orientation as well as calendars setup for future reporting. Anticipated Completion Date Already implemented. __________________________ Carlos Valentin, MBA Finance Director

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $816,000
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $53,102