Finding Text
Finding Reference: 2022-002 Federal Agency: U.S. Department of the Treasury Pass-through Agency: Puerto Rico Fiscal Agency and Financial Advisory Authority & Puerto Rico Department of Health Program: Coronavirus Relief Fund (Assistance Listing No. 21.019) Compliance Requirement: Reporting ? Special Reporting (L) Type of Finding: Significant Deficiency in Internal Controls (SD), Instance of Noncompliance (NC) This finding is similar to prior-year finding(s) 2021-003. Statement of Condition: During the fiscal year the Municipality administered funds from the Coronavirus Relief Program, this allocation was granted through two government agencies, Puerto Rico Fiscal Agency and Financial Advisory Authority & Puerto Rico Department of Health, respectively. In our Reporting Test, we found that the Municipality did not comply with the monthly compliance reporting requirements established by the Department of Health. Criteria: The Transfer Agreements, Clause 5.1, the transferee shall submit reports as the transferor determines are needed to verify use of the funds and compliance with conditions that are imposed on the transfer, and such reports shall be in such form, with such content, as specified by the transferor in the transfer plan and future program instructions directed to all recipients. Transferor will transfer emergency assistance fund to transferee for necessary expenditures related to the COVID-19 emergency by making a transfer on the basis set out in this Agreement and in the Transfer Plan attached as Exhibit A. The reports must be due on the 15th day of each month, the transferee will submit a use of funds transfer report for the prior month?s expenses. Cause of Condition: There is a lack of knowledge and training to personal assigned. Additionally, the Municipality does not have an adequate monitoring for the activity and the reports. Effect of Condition: The program is not in compliance with the Reporting Requirements as established in agreement. Recommendation: We recommend training for the authorized personnel to work with the program where they can understand and know how to develop the required reports by the pass-through agency. Also, the Municipality should establish a monitoring system to ensure compliance with established requirements, such as: submit the reports during the 15th day of each month, where the fund expenses of the previous month will be reported. This will ensure better control for the program. Questioned Cost: None. Views of Responsible Officials and Planned Corrective Action: We concur with the finding. The Municipality has taken corrective measures for faithful compliance with the established reporting dates. Compliance oversight will be strengthened for this program or any other required funds.