Finding 523290 (2024-002)

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

Core Issue: 1 out of 4 vendor files lacked complete documentation, violating procurement standards.
Impacted Requirements: Non-compliance with 2.CFR 200.318 can lead to increased scrutiny from federal agencies.
Recommended Follow-up: FUNDESCO should implement clear review protocols and enhance training for the accounting team to ensure proper documentation.

Finding Text

Condition: During our audit procedures, we noted that 1 out of 4 vendors files did not have the completely required documentation in the vendor’s permanent file. Criteria: 2.CFR 200.318 (General Procurement Standards), outlines the requirements for procurement processes, including the need for proper vendor documentation. Cause: The primary cause attributed to the missing documentation finding can be identified as a deficiency in verification process within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately training its accounting department, thereby impeding its ability to fulfill documentation requirements. Effect: Missing the required documentation 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 in the review of required documentations to ensure compliance with Federal awarding agency requirements. This includes training and defining roles and responsibilities within the finance and accounting team.

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 adequate training. However, FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) has already taken steps to improved its training to all financial and accounting department personnel. FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) will conduct a comprehensive assessment of the technical training needs. 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

523289 2024-001

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