Finding 526790 (2024-003)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-12
Audit: 345831
Organization: Municipality of Cayey (PR)

AI Summary

  • Core Issue: Financial reports do not match accounting records, indicating a significant deficiency in internal controls.
  • Impacted Requirements: Noncompliance with OMB Common Rules requiring accurate financial reporting and internal controls.
  • Recommended Follow-up: Implement monthly reconciliation of transactions to ensure accurate accounting records and timely reporting to federal agencies.

Finding Text

Finding Reference 2024-003 Federal Agency: U.S. Department of Health and Human Services Pass-through Agency: Puerto Rico Department of Family Program: Head Start Program Cluster (ALN 93.600 & 93.365) Compliance Requirement: Reporting - Financial Administration (L) Type of Finding: Significant Deficiency in Internal Controls (SD), Instance of Noncompliance (NC) This finding is similar to prior-year finding(s) 2023-003, 2022-003 and 2021-003 . Statement of Condition In our Reporting Test, we found the financial reports do not agree with the program accounting records. Criteria The OMB Common Rules, Subpart C, Section .20 (b) (1), states that the grantee must maintain internal control procedures that permit proper tracing of funds to the accounting records. Also, it requires accurate, current and complete disclosure of financial results. Cause of Condition The accounting system is not used as a reporting source. Adequate internal controls do not exist to ensure that the accounting system is used, and the information is reconciled with the closing reports submitted to the federal agencies. Effect of Condition The program is not in compliance with the Common Rules, Subpart C, Section .20 (b) (1). Recommendation We recommend the Program establish monitoring procedures to ensure the accuracy of accounting records and the correct completion of the closing reports. The Program fiscal area ensures that accounting records are updated at the end of each month in order to prepare accurate reports for the federal agency. Questioned Cost None Views of Responsible Officials and Planned Corrective Action The Head Start and Early Head Start Program accountant will reconcile transactions to the general ledger on a monthly basis, that is, review and compare each transaction to the IDs. After reviewing, appropriate corrections will be made if necessary. Implementation Date: During fiscal year 2024-2025. Responsible Person: Mrs. Idenisse Díaz Head Start Program Director

Corrective Action Plan

COMMONWEALTH OF PUERTO RICO AUTONOMOUS MUNICIPALITY OF CAYEY Corrective Action Plan For the Fiscal Year Ended June 30, 2024 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2023 – June 30, 2024 Fiscal Year: 2023-2024 Principal Executive: Hon. Rolando Ortiz Velázquez, Mayor Contact Person: Mrs. Eunice Diaz, Finance and Budget Director Phone: (787) 738-3211 Original Finding Number: 2024-003 Statement of Concurrence or Non concurrence: We concur with the finding. Corrective Action: The Head Start and Early Head Start Program accountant will reconcile transactions to the general ledger on a monthly basis, that is, review and compare each transaction to the IDs. After reviewing, appropriate corrections will be made if necessary. Implementation Date: During fiscal year 2024-2025. Responsible Person: Mrs. Idenisse Díaz Head Start Program Director

Categories

Subrecipient Monitoring Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 526788 2024-004
    Significant Deficiency Repeat
  • 526789 2024-004
    Significant Deficiency Repeat
  • 526791 2024-003
    Significant Deficiency Repeat
  • 1103230 2024-004
    Significant Deficiency Repeat
  • 1103231 2024-004
    Significant Deficiency Repeat
  • 1103232 2024-003
    Significant Deficiency Repeat
  • 1103233 2024-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $4.25M
93.575 Child Care and Development Block Grant $505,786
84.287 Twenty-First Century Community Learning Centers $485,037
14.267 Continuum of Care Program $182,143
21.027 Coronavirus State and Local Fiscal Recovery Funds $101,946
14.218 Community Development Block Grants/entitlement Grants $97,320
14.871 Section 8 Housing Choice Vouchers $75,576
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $74,886
20.507 Federal Transit Formula Grants $51,911
14.241 Housing Opportunities for Persons with Aids $18,593
10.558 Child and Adult Care Food Program $17,936
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $11,451