Finding Text
Finding Reference 2023-003
Federal Agency: U.S. Department of Health and Human Services
Pass-through Agency: Puerto Rico Department of Family
Program: Child Care and Development Block Grant (Assistance Listing No. 93.575)
Compliance Requirement: Reporting (L)
Type of Finding: Significant Deficiency in Internal Controls (SD), Instance of Noncompliance (NC)
Statement of Condition During our audit procedures, we found that the Program did not submit all the annual
closing reports or were submitted late to the pass-through entity, as required by the
contract agreement.
Criteria 45 CFR Part 98.67 (c) Fiscal control and accounting procedures shall be sufficient
to permit: (1) Preparation of reports required by the Secretary under this subpart and
under subpart H; and (2) The tracing of funds to a level of expenditure adequate to
establish that such funds have not been used in violation of the provisions of this
part.
Also, the contract agreement states in Clause eleven (11) that the Municipality is
responsible for the presentation of the trial balance and annual partial closing report
fifteen (15) calendar days after the end of the contract. Ninety (90) days after, the
Municipality should liquidate all obligations and present to the pass-through entity
the final annual closing report (CC-006).
Cause of Condition The Program does not have effective internal controls to ensure that the required
documentation and reports are submitted to the pass-through agency in the requested
time frame. There was a change in the personnel in charge of the fiscal area of the
program. Therefore, reports have been submitted late or haven’t been submitted yet.
Effect of Condition The Program is not in compliance with 45 CFR Part 98.67- Fiscal Requirements (c)
(1) (2).
Recommendation We recommend training for the authorized personnel who administer the program,
to better understand the reporting requirements and develop complete and accurate
reports. The Municipality should establish a monitoring system to ensure compliance
with requirements established by the pass-through agency. This will ensure better
control of the program.
Questioned Cost None.
Prior Year Finding No.
Views of Responsible Officials and Planned Corrective Action We concur with the finding. In the month of January 2024, the Municipality of
Cataño submitted a Letter to the ACUDEN Agency requesting additional time to be
able to submit a closure report. This request is due to the fact that said agency has
not disbursed the approved funds to the Program, to be able to carry out the
breakdown of expenses and corresponding payments. To date we have not received
a response to this request.
The Municipality of Cataño (Federal Programs Office) undertakes to follow up
with the relevant agency in future occasions to receive a response when an extension
is requested for a compliance report.
Implementation Date: Fiscal year 2023-2024
Responsible Person: Mrs. Yolanda Maldonado Oliver, Federal Programs Director