Finding 540828 (2024-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-31

AI Summary

  • Core Issue: The Municipality failed to submit the required Use of Funds Report for $930,027 spent under the Coronavirus State Fiscal Recovery Fund.
  • Impacted Requirements: Reporting to the Puerto Rico Fiscal Agency must occur within 15 days after expenses are incurred, which was not met.
  • Recommended Follow-Up: The Municipality should enhance internal controls to ensure timely submission of reports, with oversight from the Finance Department.

Finding Text

Condition: The Municipality did not submit for our review the Coronavirus State Fiscal Recovery Funds - Use of Funds Report for all the expenses incurred under the Assistance Program to Municipalities as required by program regulations. Context: The Municipality used $930,027 under the Coronavirus State Fiscal Recovery Fund during the fiscal year ended on June 30, 2024, to cover expenses related to the public health emergency caused by the Covid-19 pandemic. Criteria: Under the Municipal Strengthening Fund Program, the Municipality must report to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) program expenses for the month, 15 days after the end of the 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 is not in compliance with its grant award. Auditor’s recommendation: The Municipality should implement internal controls and procedures to ensure that the required reports are completed and submitted in a timely manner as per program regulations. View of Responsible officials and corrective actions: The Finance Department staff is aware about the compliance requirement, and instructions were given to the accounting staff to maintain a dateline control sheet to ascertain that required reports were submitted within the due date. Responsible Person: Mr. Diego Meléndez – Finance Department Director Implementation Date: Fiscal Year 2024-2025 Audit Status: Unresolved

Corrective Action Plan

The Finance Department staff is aware about the compliance requirement, and instructions were given to the accounting staff to maintain a dateline control sheet to ascertain that required reports were submitted within the due date. Responsible Person: Mr. Diego Meléndez – Finance Department Director Implementation Date: Fiscal Year 2024-2025

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 540827 2024-001
    Significant Deficiency
  • 1117269 2024-001
    Significant Deficiency
  • 1117270 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.25M
14.871 Section 8 Housing Choice Vouchers $691,081
21.019 Coronavirus Relief Fund $424,400
93.575 Child Care and Development Block Grant $395,206
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $347,993
93.569 Community Services Block Grant $122,875
20.507 Federal Transit Formula Grants $108,430
14.267 Continuum of Care Program $48,944
10.558 Child and Adult Care Food Program $19,231
14.241 Housing Opportunities for Persons with Aids $14,643
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $10,953