Finding 628569 (2022-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: The Municipality failed to submit the required Use of Funds Report for the Coronavirus State Fiscal Recovery Fund, leading to a significant compliance deficiency.
  • Impacted Requirements: Reporting must be done monthly within 15 days after expenses are incurred, which was not met.
  • Recommended Follow-Up: The Municipality should enhance internal controls to ensure timely reporting and compliance with grant requirements moving forward.

Finding Text

Type of finding: Federal Award. Situation: Significant deficiency; compliance with federal regulations. Federal Program: Coronavirus State and Local Fiscal Recovery Fund (ALN 21.027) Compliance Requirements: Reporting Prior-Year(s) Audit Finding(s): None Questioned Costs: None Condition: The Municipality has not submitted to the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) the Coronavirus State Fiscal Recovery Fund Use of Funds Report for all the expenses incurred under the Municipal Strengthening Fund Program. Context: The Municipality received $4,370,808 under the Coronavirus State Fiscal Recovery Fund during the fiscal year ended on June 30, 2022. The Municipality used $1,577,293 in program funds 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 assure that the required reports are completed and submitted timely as per program regulations. Views of Responsible officials and corrective actions: The Municipality submitted the Municipal Strengthening Fund Program Report in July 28, 2022. We will be submitting the reporting monthly during this current fiscal year 2022-2023. Audit Status: Partially Resolved

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 52126 2022-003
    Significant Deficiency Repeat
  • 52127 2022-004
    Significant Deficiency
  • 628568 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.58M
97.030 Community Disaster Loans $915,372
93.600 Head Start $544,619
93.356 Head Start Disaster Recovery $397,605
93.575 Child Care and Development Block Grant $366,077
21.019 Coronavirus Relief Fund $314,710
10.558 Child and Adult Care Food Program $143,195
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $132,764
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $113,914
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $86,891
14.871 Section 8 Housing Choice Vouchers $27,635
93.569 Community Services Block Grant $7,772
93.592 Family Violence Prevention and Services/discretionary $7,149