Finding Text
Type of finding: Federal Award.
Situation: Significant deficiency; compliance with federal regulations.
Federal Program: Coronavirus State and Local Fiscal Recovery Fund (ALN 21.027)
Compliance Requirements: Reporting
Prior-Year(s) Audit Finding(s): 2022-004
Questioned Costs: None
Condition:
The Municipality submitted to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) on June 12, 2023 and June 15, 2023 the Coronavirus State Fiscal Recovery Funds - Use of Funds Report for all the expenses incurred under the Assistance Program to Municipalities instead of submitting the report on a monthly basis as required by program regulations.
Context:
The Municipality received $784,826.73 under the Coronavirus State Fiscal Recovery Fund during the fiscal year ended on June 30, 2023. The Municipality used $2,008,347 in program funds to cover expenses related to the public health emergency caused by the Covid-19 pandemic.
Criteria:
Under the Municipal Strengthening Fund Program, the Municipality must report to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) program expenses for the month, 15 days after the end of the month.
Cause:
The Municipality did not submit the Use of Funds Report to the Aafaf by the 15th day of the following month; the expenses were incurred.
Effect:
The Municipality is not in compliance with its grant award.
Auditor’s recommendation:
The Municipality should implement internal controls and procedures to assure that the required reports are completed and submitted in a timely manner as per program regulations.
Audit Status:
Partially Resolved