Finding Text
2022-003 Type of finding: Federal Award. Situation: Significant deficiency; compliance with federal regulations. Federal Program: Coronavirus Relief Fund (ALN 21.019) Compliance Requirements: Reporting Prior-Year(s) Audit Finding(s): 2021-001 Questioned Costs: None Condition: The Municipality submitted to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) on March 14, 2022 the Coronavirus Relief Fund (CRF) 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 $203,352.41 for Phase IV under the Assistance Program to Municipalities during the fiscal year ended on June 30, 2022. The Municipality used $1,391,775 in program funds to cover expenses related to the public health emergency caused by the Covid-19 pandemic. The Municipality submitted the required report to the Aafaf on March 14, 2022. Criteria: As per the Coronavirus Relief Fund (CRF) Transfer Agreement for the Assistance Program to Municipalities clause 5.1, the Transferee shall submit reports as the Transferor determines are needed to verify use of the funds and compliance with conditions that are imposed on the Transfer, and such reports shall be in such form, which such content, as specified by the Transferor in the Transfer Plan and future program instructions directed to all Recipients. Exhibit A of the Transfer Plan states that the Transferee will submit a Use of Funds Transfer Report for the prior month?s expenses by the 15th day of each 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 submitted to Aafaf a final Use of Funds Report instead of completing the report on a monthly basis, on or before the 15th of the month, as required by program regulations. Auditor?s recommendation: The Municipality should implement internal controls and procedures to assure that the required reports are completed and submitted timely as per program regulations. Views of Responsible officials and corrective actions: Reports and expense reports have been submitted to CRF Municipalities Closeout. Auditors from the U.S. have visited us twice. We have provided all the information that they have requested in these visits. Finally we did reimbursed the balance not used. Contact Tracing Reports were submitted monthly in 2021-2022. Audit Status: Partially Resolved