Finding 34583 (2022-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: The accounting records are incomplete and do not adequately identify the source and application of funds.
  • Impacted Requirements: This violates Uniform Guidance Part 200.302, which mandates proper financial management systems for grantees.
  • Recommended Follow-Up: Complete the integration of the accounting software to ensure accurate financial reporting and decision-making.

Finding Text

2022-001 Financial Management ? Accounting System and Reporting Practices Criteria As stated in Uniform Guidance Part 200.302 ? Standards for Financial management: (3) The financial management system of other grantees and sub-grantees must meet the following standards: (3) Accounting records: Grantees and sub-grantees must maintain records which adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or subgrant awards and authorizations, obligations, un-obligated balances, assets, liabilities outlays or expenditures and income. Condition The accounting records did not identify any record or disclose information related to the funds, assets and liabilities. Cause The Board's accounting system is in the process of completing the integration of an accounting software to maintain records of funds, assets and liabilities. The Board's funds are, by law, under custody and control of the Secretary of the Treasury and are also accounted for in the Commonwealth's Central Government Accounting Systems (CGAS). Effect The Board does not have complete financial information that could affect the decision-making process. Questioned cost None Perspective information N/A Repeat finding 2021-001 Recommendation The Board needs to complete the integration process of its accounting system that will provide complete financial information. View of responsible Official Management agrees. Official Mr. Andres Ruiz, Finance Director

Corrective Action Plan

FINDING NUMBER 2022-001 Financial Management ? Accounting System and Reporting Practices PRIFAS is the official accountability of Puerto Rico?s Government. This system does not have compatibility with many sub-systems. The Department of the Treasury is working with the new accounting and financial system that would harmonize with government agencies and we hope to be ready in September 2023. The Puerto Rico Planning Board continues to monitor the Treasury Department in relation to this matter and to correct this finding. The Planning Board expects to complete it by 2023. Contact Official: Mr. Andres Ruiz, Finance Director

Categories

Reporting

Other Findings in this Audit

  • 611025 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
97.039 Hazard Mitigation Grant $13.73M
93.630 Developmental Disabilities Basic Support and Advocacy Grants $402,539
14.218 Community Development Block Grants/entitlement Grants $252,321
97.023 Community Assistance Program State Support Services Element (cap-Ssse) $75,973
11.419 Coastal Zone Management Administration Awards $69,228
97.045 Cooperating Technical Partners $47,587