Finding 573143 (2023-006)

Significant Deficiency
Requirement
ABHN
Questioned Costs
-
Year
2023
Accepted
2025-08-08
Audit: 363965
Organization: Puerto Rico Ports Authority (PR)
Auditor: Galindez LLC

AI Summary

  • Core Issue: Funds from FEMA were incorrectly recorded as revenue without proper analysis, leading to misclassification of capital advances.
  • Impacted Requirements: The Authority failed to distinguish between different federal awards, mislabeling all funds under one category.
  • Recommended Follow-Up: Review and correct the revenue recognition process and ensure accurate categorization of federal awards in accounting records.

Finding Text

During our procedures over the Authority’s funds received from FEMA we noticed the following: 1. All funds received from FEMA were recorded as revenue without analyzing if revenue recognition was correct. When examining the evidence received, we noticed many of the funds were capital advances in which the Authority had recognized as revenue without expending the funds. These funds were included in the original Schedule of Expenditures and Federal Awards (SEFA) without being expended. 2. The authority did not make clear distinction on the correct federal award of the funds received on the accounting records. There were funds that belonged to ALN 97.036, Disaster Grants - Public Assistance (Presidentially Declared Disasters) while others belonged to ALN 97.039, Hazard Mitigation Grant Program, however, the Authority did not make this distinction originally identifying them all under ALN 97.036.

Corrective Action Plan

The Authority’s management will ensure that, in the future, the FFMO will coordinate with the assigned outside consultants all the efforts necessary for the proper handling, identification and classification of funds received from FEMA.

Categories

Reporting

Other Findings in this Audit

  • 573138 2023-004
    Significant Deficiency Repeat
  • 573139 2023-005
    Significant Deficiency Repeat
  • 573140 2023-008
    Significant Deficiency
  • 573141 2023-009
    Significant Deficiency
  • 573142 2023-005
    Significant Deficiency Repeat
  • 573144 2023-007
    Significant Deficiency
  • 573145 2023-005
    Significant Deficiency Repeat
  • 573146 2023-006
    Significant Deficiency
  • 1149580 2023-004
    Significant Deficiency Repeat
  • 1149581 2023-005
    Significant Deficiency Repeat
  • 1149582 2023-008
    Significant Deficiency
  • 1149583 2023-009
    Significant Deficiency
  • 1149584 2023-005
    Significant Deficiency Repeat
  • 1149585 2023-006
    Significant Deficiency
  • 1149586 2023-007
    Significant Deficiency
  • 1149587 2023-005
    Significant Deficiency Repeat
  • 1149588 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $13.92M
97.039 Hazard Mitigation Grant $1.79M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $792,252
16.922 Equitable Sharing Program $189,988
14.218 Community Development Block Grants/entitlement Grants $15,141