MISION CRISTIANA FUENTE DE AGUA VIVA, INC.Non-Profit

Finding Number: Agency: Federal Program: Pass Through: CFDA: Grant Number: Grant Period: Compliance Requirement: Category: 2021-001 Department of Homeland Security Disaster Grants-Public Assistance (Presidentially Declared Disasters) Central Office of Recovery and Reconstruction of Puerto Rico (COR3) 97.036 PW 6017 September 1, 2017, through September 30, 2022 Allowable costs/Costs Principles Significant Deficiency in Internal Control over Compliance Criteria: As per 2 CFR 200.403 except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: (a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles. (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items. ( c) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-Federal entity. ( d) Be accorded consistent treatment. A cost may not be assigned to a federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost. ( e) Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this part. (f) Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period. See also? 200.306(b). (g) Be adequately documented. See also?? 200.300 through 200.309 of this part. (h) Cost must be incurred during the approved budget period. The Federal awarding agency is authorized, at its discretion, to waive prior written approvals to carry forward unobligated balances to subsequent budget periods pursuant to ? 200.308(e)(3). Condition: The entity requested $90,476 to COR3 for reimbursement of costs incurred. Such amount was for deductions from COR3 on prior cash fund request to comply with 10% matching of funds agreement and actual construction costs. Cause: The entity personnel missed the fact of matching funds deduction from COR3 on each invoice that got a deduction of 10% to meet client's matching requirements. Effect: The entity charged the COR3 for an activity that did constitute project construction activity and therefore constitute unallowable activity and the federal funds were charged for it. Questioned Costs: $90,476 Perspective Information: Condition is an isolate case. Prior Year Audit Finding: NIA Recommendation: To improve supervision and review control over cash request form to COR3. Views of responsible officials: It had been a duplicity in the amount of funds requested to COR3. Responsible Officials: Pastor Edwin Rodriguez