Finding 528200 (2023-001)

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Requirement
L
Questioned Costs
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Year
2023
Accepted
2025-03-14
Audit: 346257
Organization: Luis A Ferre Foundation (PR)

AI Summary

  • Issue: The Final Report for ARPA grant funds was submitted late.
  • Impact: This delays compliance with reporting requirements set for December 31, 2024.
  • Recommendation: Ensure timely submission of future reports to avoid penalties and maintain compliance.

Finding Text

During our compliance procedures performed over the Foundation’s reporting requirements, we noted that the Final Report of the grant funds received under the American Rescue Plan Act of 2021 (ARPA) for the period from October 2022 to June 2023, which was due on December 31, 2024, was filed on January 17, 2025.

Corrective Action Plan

To address the identified issues, The Luis A. Ferré Foundation, Inc. is implementing the following corrective actions: 1. Establishment of a Grant Compliance Calendar & Reminder System (i) A centralized calendar will track all grant deadlines and reporting requirements and this calendar will be accessible and managed by at least 3 employees or more. (ii) Automated email reminders will be set at 30, 15, and 5 days before each deadline and these alerts will be received by at least 3 employees or more. (iii) Responsibilities for monitoring the calendar will be assigned to key personnel. 2. Designation of a Compliance Officer (i) A dedicated staff member will be assigned to oversee compliance with grant reporting. (ii) This individual will be responsible for monitoring deadlines, ensuring timely submissions, and coordinating internal reviews with development, finance and director’s office (iii) The Compliance Officer will conduct monthly check-ins with relevant departments to confirm progress on upcoming reports. 3. Implementation of a Pre-Submission Review Process (i) Reports will be prepared and reviewed internally at least one week before the submission deadline (ii) A checklist will be developed to verify accuracy and completeness before final submission. (iii) A second reviewer will be assigned to cross-check compliance with grant requirements. (iv) Feedback from the review process will be documented and shared with staff for continuous improvement. 4. Staff Training on Grant Compliance (i) Training sessions will be conducted annually to educate staff on grant reporting requirements.(ii) New employees with grant management responsibilities will receive onboarding training specific to compliance procedures. (iii) Training materials will be updated regularly to reflect any changes in reporting standards. (iv) Staff will be required to complete a short assessment after training to ensure comprehension of compliance expectations. 5. Strengthening Internal Controls (i) A formalized policy document will be developed outlining grant reporting procedures. (ii) Reports will be logged in a shared system where progress can be tracked in real-time. (iii) Quarterly audits of compliance with reporting deadlines will be conducted, with findings reported to senior leadership.

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $200,000