Finding 523289 (2024-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2025-02-14

Audit: 342549

Organization: Fundacion De Desarollo Comunal De Puerto Rico (PR)

Auditor: Velez CPA Group

AI Summary

Issue: Financial reports were submitted late, violating quarterly submission requirements.
Impact: Late submissions may lead to increased scrutiny from federal agencies and potential funding delays.
Follow-up: FUNDESCO should improve staffing in finance, clarify roles, and set clear deadlines for report submissions.

Finding Text

Condition: During our audit procedures, we noted that the following financial reports were not submitted on time. Criteria: As stated in the award terms 2.CFR 200.328, financial reports are due on a quarterly basis. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting on its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.

Corrective Action Plan

FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) acknowledges the findings identified during the single audit regarding reporting requirements stemming from a lack of personnel. However, FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) has already contracted capable personnel to assist in the finance department to comply with financial reports. FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) will conduct a comprehensive assessment of the technical training needs of the identified personnel. Evaluate their current knowledge and skill levels related to reporting requirements, accounting principles, and compliance regulations. Also, FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) will determine the most effective delivery method for the training program, considering the learning references and availability of personnel. Options may include: • In-person workshops or seminars led by subject matter experts. • Online courses or virtual training sessions accessible remotely. • Self-paced learning modules supplemented with instructional materials and resources. Implementing this corrective action plan focused on technical training for personnel responsible for reporting requirements, FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) can enhance reporting accuracy, compliance, and overall effectiveness.

Other Findings in this Audit

523290 2024-002

Significant Deficiency
523291 2024-002

Significant Deficiency
1099731 2024-001

Significant Deficiency
1099732 2024-002

Significant Deficiency
1099733 2024-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.267	Continuum of Care Program	$311,281
93.575	Child Care and Development Block Grant	$288,742
93.671	Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services	$186,475
14.231	Emergency Solutions Grant Program	$109,606
14.241	Housing Opportunities for Persons with Aids	$49,775
14.195	Section 8 Housing Assistance Payments Program	$42,133
14.252	Section 4 Capacity Building for Community Development and Affordable Housing	$31,701
21.027	Coronavirus State and Local Fiscal Recovery Funds	$25,296
10.558	Child and Adult Care Food Program	$9,282