Finding Text
FINDING NUMBER: 2022-005 FEDERAL AGENCY: U.S. DEPARTMENT OF THE TREASURY PASS-THROUGH AGENCY: P.R. DEPARTMENT OF TREASURY - PUERTO RICO FISCAL AGENCY AND FINANCIAL ADVISORY AUTHORITY FEDERAL PROGRAM: CORONAVIRUS RELIEF FUND (ALN 21.019) REQUIREMENT: REPORTING ? SPECIAL REPORTING (L) TYPE OF FINDING: SIGNIFICANT DEFICIENCY (SD) / NONCOMPLIANCE (NC) CONDITION: In our Reporting Test, we found that the Municipality did not comply with the monthly compliance reporting requirements established by the pass-through agencies. We found that in some months the reports were submitted late or not submitted at all. CRITERIA: The Coronavirus Relief Fund Transfer Agreements, Clause 5.1, states that the transferee shall submit reports as the transferor determines are needed to verify the use of the funds and compliance with conditions that are imposed on the Transfer Agreement, 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. The 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 the Agreement and in the Transfer Plan. The passthrough entities established that the reports are due on the 15th day of each month and must detail the use of funds of the prior month. CAUSE: 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: The program is not in compliance with the Reporting Requirements as established in the transfer 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 on or before the 15th day of each month. This will ensure better control for the program. QUESTIONED COST: None PRIOR YEAR FINDING: A similar finding was presented in prior year Schedule of Findings and Questioned Costs (2021-006) VIEWS OF PLANNED RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: We concur with the auditor?s finding. The Finance Director is aware about the compliance requirement. We gave instructions to the accounting staff to maintain a dateline control sheet to ascertain that required reports for all grants were submitted within the due date. Implementation Date: April 30, 2023 Responsible Person: Kristian Rivera Santiago Finance Director