EIN: 660433521
UEI: VPHMEMJ352N3
Audited by: TORRES FRED & CO, PSC
Oversight agency: 97 [Department of Homeland Security]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 31, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by October 1, 2026 (31 days from today).
What is a management decision? →FINDING 2025-004 FEDERAL PROGRAM CHILD CARE AND DEVELOPMENT BLOCK GRANT (93.575) FEDERAL AGENCY U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES COMPLIANCE PROCUREMENT TYPE OF FINDING SIGNIFICANT DEFICIENCY- INSTANCE OF NON COMPLIANCE CONDITIONS During our disbursements test, we identified six (6) purchases that were awarded based on a single quote, without following standard competitive procurement procedures. Each purchase was accompanied by a certification indicating that the purchase was urgently needed, but it was not documented what this urgency consisted of. CRITERIA According to 2 CFR §200.319(a), all procurement transactions must be conducted in a manner providing full and open competition. Additionally, 2 CFR §200.320(a)(2) requires that small purchase procedures obtain quotes from an adequate number of qualified sources unless an exception applies. CAUSE The Program does not have proper internal control over procurement and non compliance with policies and procedures for acquisitions and with the funds delegation agreement. EFFECT The lack of competition increases the risk that goods or services may not have been acquired at the most reasonable cost, and non-compliance with regulatory requirements. RECOMMENDATION We recommend that management strengthen internal controls over procurement to ensure compliance with 2 CFR Part 200. Specifically: 1. Require the solicitation and documentation of multiple quotes for all applicable purchases. 2. Document and approve exceptions in cases where only a single quote is obtained, with justification. 3. Monitor compliance regularly to ensure all procurement activities follow federal regulations and internal policies. QUESTIONED COST: None PRIOR YEAR Not Applicable MANAGEMENT RESPONSE We concur with the finding RESPONSIBLE OFFICIALS Mrs. María Ortiz Martinez, Finance Department Director
Show full finding ▾Hide full finding ▴FINDING 2025-004 FEDERAL PROGRAM CHILD CARE AND DEVELOPMENT BLOCK GRANT (93.575) FEDERAL AGENCY U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES COMPLIANCE PROCUREMENT TYPE OF FINDING SIGNIFICANT DEFICIENCY- INSTANCE OF NON COMPLIANCE CONDITIONS During our disbursements test, we identified six (6) purchases that were awarded based on a single quote, without following standard competitive procurement procedures. Each purchase was accompanied by a certification indicating that the purchase was urgently needed, but it was not documented what this urgency consisted of. CRITERIA According to 2 CFR §200.319(a), all procurement transactions must be conducted in a manner providing full and open competition. Additionally, 2 CFR §200.320(a)(2) requires that small purchase procedures obtain quotes from an adequate number of qualified sources unless an exception applies. CAUSE The Program does not have proper internal control over procurement and non compliance with policies and procedures for acquisitions and with the funds delegation agreement. EFFECT The lack of competition increases the risk that goods or services may not have been acquired at the most reasonable cost, and non-compliance with regulatory requirements. RECOMMENDATION We recommend that management strengthen internal controls over procurement to ensure compliance with 2 CFR Part 200. Specifically: 1. Require the solicitation and documentation of multiple quotes for all applicable purchases. 2. Document and approve exceptions in cases where only a single quote is obtained, with justification. 3. Monitor compliance regularly to ensure all procurement activities follow federal regulations and internal policies. QUESTIONED COST: None PRIOR YEAR Not Applicable MANAGEMENT RESPONSE We concur with the finding RESPONSIBLE OFFICIALS Mrs. María Ortiz Martinez, Finance Department Director
The Municipality will strengthen internal control and procedures to use adequate procurement process for the acquisition of goods and services in open competition to ensure that the Municipality receives a significant number of quotations from suppliers. Also, the Municipality will review and strengthen the purchasing procedures, to ensure that at least three quotations are requested from the suppliers. Implementation Date: Partially corrected Responsible Person: Mrs. María Ortiz Martínez Finance Department Director
FAC accepted this audit on March 31, 2025 — management decision was due October 1, 2025.
FAC accepted this audit on April 12, 2024 — management decision was due October 12, 2024.
Municipality of Maunabo, Puerto Rico SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2023 SECTION II – Financial Statements Finding and Questioned Costs (continued) FINDING 2023-005 FEDERAL PROGRAM COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PASS THROUGH STATE HOUSING DEPARTMENT (ASSISTANCE LISTING NO.14.228) CATEGORY INTERNAL CONTROL/COMPLIANCE NONCOMPLIANCE REPORTING CONDITIONS As part of the evaluation of the Reporting Test we requested evidence of the filing of the Quarterly Report for the fiscal year 2022-2023. In the audit of the program, we noted the following: The quarterly reports for the following quarters had not been filed to the Puerto Rico Department of Housing: July-September 2022 October- December 2022 January-March 2023 April-June 2023 CRITERIA The delegation of funds contract signed between the Department of Housing of Puerto Rico and the Municipality establishes in its twentieth clause that the subrecipient is obliged to submit to the recipient the quarterly and annual reports for the projects developed with CDBG funds. CAUSE The Community Development Block Grant Program (CDBG) are not maintaining adequate internal controls to guarantee timely filing of quarterly reports. EFFECT The Municipality is exposed to the risk that the Puerto Rico Department of Housing halt the process of requisitioning funds from the administration line, affecting the operation of the program and the use of funds. RECOMMENDATION We recommend that the program establish internal control measures to ensure that the program's quarterly reports are submitted on time to the Puerto Rico Department of Housing. QUESTIONED COST None PRIOR YEAR Not Applicable MANAGEMENT RESPONSE We concur with the finding RESPONSIBLE OFFICIALS Mrs. Sandra Leon, Program Director
Show full finding ▾Hide full finding ▴Municipality of Maunabo, Puerto Rico SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2023 SECTION II – Financial Statements Finding and Questioned Costs (continued) FINDING 2023-005 FEDERAL PROGRAM COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PASS THROUGH STATE HOUSING DEPARTMENT (ASSISTANCE LISTING NO.14.228) CATEGORY INTERNAL CONTROL/COMPLIANCE NONCOMPLIANCE REPORTING CONDITIONS As part of the evaluation of the Reporting Test we requested evidence of the filing of the Quarterly Report for the fiscal year 2022-2023. In the audit of the program, we noted the following: The quarterly reports for the following quarters had not been filed to the Puerto Rico Department of Housing: July-September 2022 October- December 2022 January-March 2023 April-June 2023 CRITERIA The delegation of funds contract signed between the Department of Housing of Puerto Rico and the Municipality establishes in its twentieth clause that the subrecipient is obliged to submit to the recipient the quarterly and annual reports for the projects developed with CDBG funds. CAUSE The Community Development Block Grant Program (CDBG) are not maintaining adequate internal controls to guarantee timely filing of quarterly reports. EFFECT The Municipality is exposed to the risk that the Puerto Rico Department of Housing halt the process of requisitioning funds from the administration line, affecting the operation of the program and the use of funds. RECOMMENDATION We recommend that the program establish internal control measures to ensure that the program's quarterly reports are submitted on time to the Puerto Rico Department of Housing. QUESTIONED COST None PRIOR YEAR Not Applicable MANAGEMENT RESPONSE We concur with the finding RESPONSIBLE OFFICIALS Mrs. Sandra Leon, Program Director
We will give instructions to the Federal Program Director and the accountant to prepare as soon as possible, the quarterly reports mentioned in the findings in order to submit to the Puerto Rico Housing Department for review and evaluation. Implementation Date: June 30, 2024 Responsible Person: Mrs. Sandra León Federal Program Director
Municipality of Maunabo, Puerto Rico SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2023 SECTION III – Federal Award Finding and Questioned Costs FINDING 2023-006 FEDERAL PROGRAM COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) (CFDA NO. 14.228) DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PASS THROUGH STATE HOUSING DEPARTMENT CATEGORY INTERNAL CONTROL/COMPLIANCE NONCOMPLIANCE EQUIPMENT AND REAL PROPERTY MANAGEMENT CONDITIONS The Municipality and the Community Development Block Grant Program (CDBG) are not maintaining adequate internal controls over property and equipment items acquired with Federal Funds. In testing property and equipment, we noted the following: • The property subsidiary ledger of the Program was not available for examination. • The Program personnel did not provide evidence that a physical inventory was performed during the fiscal year 2022-2023. CRITERIA 24 CFR 85.32(d) establishes that procedures for managing equipment will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the cost of the property, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft shall be investigated. 24 CFR 85.20 (b)(3), establishes that effective control and accountability must be maintained for all grant and subgrant cash, real and personal property, and other assets. Grantees and subgratees must adequately safeguard all such property and must assure that it is used solely for authorized purposes. CAUSE The CDBG Program has inadequate internal control procedures that guarantee adequate records, registering and safeguarding of property and equipment. EFFECT Without completion of a regular physical inventory and maintenance of an adequate property subsidiary record, the Program is at increased risk of theft or loss of equipment, it cannot be assured that Federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses. In addition, sanctions could be imposed by the Lead Agency State CDBG Program or the federal awarding agency. RECOMMENDATION Management should prepare the property subsidiary ledger and a physical inventory must be made. In addition, the CDBG Program and the Accounting Department should establish a property control account and a subsidiary ledger to provide for the reconciliation of property. QUESTIONED COST: None PRIOR YEAR Not Applicable MANAGEMENT RESPONSE We concur with the finding RESPONSIBLE OFFICIALS Mrs. Sandra Leon, Program Director
Show full finding ▾Hide full finding ▴Municipality of Maunabo, Puerto Rico SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2023 SECTION III – Federal Award Finding and Questioned Costs FINDING 2023-006 FEDERAL PROGRAM COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) (CFDA NO. 14.228) DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PASS THROUGH STATE HOUSING DEPARTMENT CATEGORY INTERNAL CONTROL/COMPLIANCE NONCOMPLIANCE EQUIPMENT AND REAL PROPERTY MANAGEMENT CONDITIONS The Municipality and the Community Development Block Grant Program (CDBG) are not maintaining adequate internal controls over property and equipment items acquired with Federal Funds. In testing property and equipment, we noted the following: • The property subsidiary ledger of the Program was not available for examination. • The Program personnel did not provide evidence that a physical inventory was performed during the fiscal year 2022-2023. CRITERIA 24 CFR 85.32(d) establishes that procedures for managing equipment will, as a minimum, meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the cost of the property, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft shall be investigated. 24 CFR 85.20 (b)(3), establishes that effective control and accountability must be maintained for all grant and subgrant cash, real and personal property, and other assets. Grantees and subgratees must adequately safeguard all such property and must assure that it is used solely for authorized purposes. CAUSE The CDBG Program has inadequate internal control procedures that guarantee adequate records, registering and safeguarding of property and equipment. EFFECT Without completion of a regular physical inventory and maintenance of an adequate property subsidiary record, the Program is at increased risk of theft or loss of equipment, it cannot be assured that Federal equipment records were accurately maintained, and it may not be aware of all equipment disposals or losses. In addition, sanctions could be imposed by the Lead Agency State CDBG Program or the federal awarding agency. RECOMMENDATION Management should prepare the property subsidiary ledger and a physical inventory must be made. In addition, the CDBG Program and the Accounting Department should establish a property control account and a subsidiary ledger to provide for the reconciliation of property. QUESTIONED COST: None PRIOR YEAR Not Applicable MANAGEMENT RESPONSE We concur with the finding RESPONSIBLE OFFICIALS Mrs. Sandra Leon, Program Director
We will give instructions to the Property Division and the Federal Program Director, to start as soon as possible a physical inventory of the machinery, equipment, and vehicles acquired with CDBG funds and reconcile it with an updated capital assets subsidiary ledger, which will include among others; a full description of the assets, location of the assets, use, responsible person and cost. Implementation date: September 30, 2024 Responsible Person: Mrs. Sandra León Federal Program Director
FAC accepted this audit on February 14, 2024 — management decision was due August 14, 2024.
MUNICIPALITY OF MAUNABO, PUERTO RICO SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2022 SECTION III – Federal Award Finding and Questioned Costs FINDING 2022-006 FEDERAL PROGRAM CORONAVIRUS RELIEF FUND 21.019 CATEGORY INTERNAL CONTROL- MATERIAL WEAKNESS NONCOMPLIANCE ALLOWABLE ACTIVITIES AND COST PRINCIPLE CONDITIONS The Municipality could not provide the supporting documentation on the following program transaction: Check Num. Date Amount 208 12/22/21 $530.00 223 3/30/22 $14,150.00 35 6/22/22 $320.00 CRITERIA 2 CFR 200.303 (a) internal control establishes that the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. CAUSE The Municipality does not have proper internal control over the filling of vouchers for payments. EFFECT Due to the lack of internal controls and supporting information, we could not validate that the disbursement was in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. This situation could result in questioned costs and noncompliance with required regulations. RECOMMENDATION The Municipality should establish adequate procedures and controls, which shall consider, among others, an adequate filling procedure of documentation to support the allowability of its expenditures. The Municipality shall improve its internal controls over the filing and safeguarding of documents in order to easily identify and retrieve payment vouchers and all related supporting documentation. MUNICIPALITY OF MAUNABO, PUERTO RICO SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2022 SECTION III – Federal Award Finding and Questioned Costs (continued) FINDING 2022-006 (continued) QUESTIONED COST: None PRIOR YEAR Not Applicable MANAGEMENT RESPONSE We concur with the finding RESPONSIBLE OFFICIALS Mrs. María Ortiz Martinez, Finance Department Director
Show full finding ▾Hide full finding ▴MUNICIPALITY OF MAUNABO, PUERTO RICO SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2022 SECTION III – Federal Award Finding and Questioned Costs FINDING 2022-006 FEDERAL PROGRAM CORONAVIRUS RELIEF FUND 21.019 CATEGORY INTERNAL CONTROL- MATERIAL WEAKNESS NONCOMPLIANCE ALLOWABLE ACTIVITIES AND COST PRINCIPLE CONDITIONS The Municipality could not provide the supporting documentation on the following program transaction: Check Num. Date Amount 208 12/22/21 $530.00 223 3/30/22 $14,150.00 35 6/22/22 $320.00 CRITERIA 2 CFR 200.303 (a) internal control establishes that the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. CAUSE The Municipality does not have proper internal control over the filling of vouchers for payments. EFFECT Due to the lack of internal controls and supporting information, we could not validate that the disbursement was in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. This situation could result in questioned costs and noncompliance with required regulations. RECOMMENDATION The Municipality should establish adequate procedures and controls, which shall consider, among others, an adequate filling procedure of documentation to support the allowability of its expenditures. The Municipality shall improve its internal controls over the filing and safeguarding of documents in order to easily identify and retrieve payment vouchers and all related supporting documentation. MUNICIPALITY OF MAUNABO, PUERTO RICO SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2022 SECTION III – Federal Award Finding and Questioned Costs (continued) FINDING 2022-006 (continued) QUESTIONED COST: None PRIOR YEAR Not Applicable MANAGEMENT RESPONSE We concur with the finding RESPONSIBLE OFFICIALS Mrs. María Ortiz Martinez, Finance Department Director
The Municipality's Finance Department staff will be instructed to safeguard properly, all the fiscal supporting documents related to the disbursement process. In addition, we will improve our procedures and internal control controls over the filing and safeguarding of documents, payment vouchers and all related supporting documentation of the disbursement cycle.
FAC accepted this audit on August 15, 2023 — management decision was due February 15, 2024.
Finding Number: 2021-006 Compliance Requirement: Reporting Category: Financial, Material Weakness and Noncompliance Criteria OMB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal years ending after December 25, 2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. OMB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (h) (1) and (2)(B) establish that the nonFederal Organization shall transmit the reporting package, which shall include the non-Federal Organization's financial statements, schedule of expenditures of Federal awards, corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504, when the 9-month timeframe would place an undue burden on the non-Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2021 of the Municipality with due date of September 30, 2022 was submitted after the deadline. Also, the Executive Office of the President issued a notice of waivers from M-20-17 memorandum to extend the Single Audit Submission (2 CFR 200.512) which establish ?Awarding agencies, in their capacity as cognizant or oversight agencies for audit, should allow recipients and subrecipients that have not yet filed their single audits with the Federal Audit Clearinghouse as of the date of the issuance of this memorandum that have fiscal year-ends through June 30, 2020, to delay the completion and submission of the Single Audit reporting package, as required under Subpart F of 2 CFR ? 200.501 -Audit Requirements, to six (6) months beyond the normal due date. No further action by awarding agencies is required to enact this extension. This extension does not require individual recipients and subrecipients to seek approval for the extension by the cognizant or oversight agency for audit; however, recipients and subrecipients should maintain documentation of the reason for the delayed filing. Recipients and subrecipients taking advantage of this extension would still qualify as a "low-risk auditee" under the criteria of 2 CFR ? 200.520 (a)- Criteria for a lowrisk auditee.? Cause The municipality did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the municipality in the due date established by the Single Audit Act. Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represent a significant problem. The municipality will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2020-006 Recommendations The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9 months deadline. Views of responsible officials We will give instructions to the Finance Department to submit, in a timely manner, all the required financial information, to our financial consultant and the external auditors, to comply with the deadline for the submission of the Single Audit Report for the fiscal year ended June 30, 2023, which is March 31, 2024.
Show full finding ▾Hide full finding ▴Finding Number: 2021-006 Compliance Requirement: Reporting Category: Financial, Material Weakness and Noncompliance Criteria OMB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal years ending after December 25, 2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. OMB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (h) (1) and (2)(B) establish that the nonFederal Organization shall transmit the reporting package, which shall include the non-Federal Organization's financial statements, schedule of expenditures of Federal awards, corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504, when the 9-month timeframe would place an undue burden on the non-Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2021 of the Municipality with due date of September 30, 2022 was submitted after the deadline. Also, the Executive Office of the President issued a notice of waivers from M-20-17 memorandum to extend the Single Audit Submission (2 CFR 200.512) which establish ?Awarding agencies, in their capacity as cognizant or oversight agencies for audit, should allow recipients and subrecipients that have not yet filed their single audits with the Federal Audit Clearinghouse as of the date of the issuance of this memorandum that have fiscal year-ends through June 30, 2020, to delay the completion and submission of the Single Audit reporting package, as required under Subpart F of 2 CFR ? 200.501 -Audit Requirements, to six (6) months beyond the normal due date. No further action by awarding agencies is required to enact this extension. This extension does not require individual recipients and subrecipients to seek approval for the extension by the cognizant or oversight agency for audit; however, recipients and subrecipients should maintain documentation of the reason for the delayed filing. Recipients and subrecipients taking advantage of this extension would still qualify as a "low-risk auditee" under the criteria of 2 CFR ? 200.520 (a)- Criteria for a lowrisk auditee.? Cause The municipality did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the municipality in the due date established by the Single Audit Act. Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represent a significant problem. The municipality will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2020-006 Recommendations The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9 months deadline. Views of responsible officials We will give instructions to the Finance Department to submit, in a timely manner, all the required financial information, to our financial consultant and the external auditors, to comply with the deadline for the submission of the Single Audit Report for the fiscal year ended June 30, 2023, which is March 31, 2024.
We will give instructions to the Finance Department to submit, in a timely manner, all the required financial information, to our financial consultant and the external auditors, to comply with the deadline for the submission of the Single Audit Report for the fiscal year ended June 30, 2023, which is March 31, 2024. Implementation date: March 31, 2024 Responsible Person: Mrs. Maria Ortiz Martinez Finance Department Director
Condition As per FEMA Project Worksheets (PW?s) establish the period of performance on witch budget period can be incurred. Budget period is the time interval from the start date of a funded portion of an award to the end date of that funded portion during which recipients are authorized to expend the funds awarded, including any funds carried forward or other revisions. PWs are documented in FEMA form 90-91. The Municipality could not provide the supporting documentation on the following program transaction. Caused The Municipality does not have proper internal control over the filling of vouchers for payments. The Municipality provided expenditures evidence on $89,989, leaving $80,548 without evidence on expenditures being incurred. Effect Lack of supporting information could result in questioned costs and noncompliance with required regulations. Also, this can create budget deviations that can result in misinterpretation by grantor or other evaluators. Questioned Costs $ 80,548 Perspective Information Finding represents a significant problem. The Municipality has addressed this finding and it?s been taking the steps necessary to reduce incidences to a minimum.
Show full finding ▾Hide full finding ▴Condition As per FEMA Project Worksheets (PW?s) establish the period of performance on witch budget period can be incurred. Budget period is the time interval from the start date of a funded portion of an award to the end date of that funded portion during which recipients are authorized to expend the funds awarded, including any funds carried forward or other revisions. PWs are documented in FEMA form 90-91. The Municipality could not provide the supporting documentation on the following program transaction. Caused The Municipality does not have proper internal control over the filling of vouchers for payments. The Municipality provided expenditures evidence on $89,989, leaving $80,548 without evidence on expenditures being incurred. Effect Lack of supporting information could result in questioned costs and noncompliance with required regulations. Also, this can create budget deviations that can result in misinterpretation by grantor or other evaluators. Questioned Costs $ 80,548 Perspective Information Finding represents a significant problem. The Municipality has addressed this finding and it?s been taking the steps necessary to reduce incidences to a minimum.
The Municipality?s Finance Department staff will be instructed to safeguard properly all the fiscal supporting documents related to the disbursement process. In addition, we will improve our procedures and internal controls over the filing and safeguarding of documents, payment vouchers and all the related supporting documentation of the disbursement cycle. Implementation date: Immediately Responsible Person: Mrs. Maria Ortiz Martinez Finance Department Director
FAC accepted this audit on September 29, 2022 — management decision was due March 29, 2023.
SECTION II ? FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS- CONTINUED Finding Number: 2020-006 Compliance Requirement: Reporting Category: Financial, Internal Control Weakness and Noncompliance Criteria OMB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal years ending after December 25, 2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. OMB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (h) (1) and (2)(B) establish that the non-Federal Organization shall transmit the reporting package, which shall include the non-Federal Organization's financial statements, schedule of expenditures of Federal awards, corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504, when the 9-month timeframe would place an undue burden on the non-Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2019 of the Municipality with due date of March 31, 2020 was submitted after the 9 months deadline. The Single Audit related to such period was completed after the 9 months deadline. Also, the Executive Office of the President issued a notice of waivers from M-20-17 memorandum to extend the Single Audit Submission (2 CFR 200.512) which establish ?Awarding agencies, in their capacity as cognizant or oversight agencies for audit, should allow recipients and subrecipients that have not yet filed their single audits with the Federal Audit Clearinghouse as of the date of the issuance of this memorandum that have fiscal year-ends through June 30, 2020, to delay the completion and submission of the Single Audit reporting package, as required under Subpart F of 2 CFR ? 200.501 -Audit Requirements, to six (6) months beyond the normal due date. No further action by awarding agencies is required to enact this extension. This extension does not require individual recipients and subrecipients to seek approval for the extension by the cognizant or oversight agency for audit; however, recipients and subrecipients should maintain documentation of the reason for the delayed filing. Recipients and subrecipients taking advantage of SECTION II ? FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS- CONTINUED this extension would still qualify as a "low-risk auditee" under the criteria of 2 CFR ? 200.520 (a)- Criteria for a low-risk auditee.? Cause The municipality did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the municipality in the due date established by the Single Audit Act. Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represent a significant problem. The municipality will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding None Recommendations The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9 months deadline. Views of responsible officials We will give instructions to the Finance Department to submit, in a timely manner, all the required financial information, to our financial consultant and the external auditors, to comply with the deadline for the submission of the Single Audit Report for the fiscal year 2021-2022, which is March 31, 2023. SECTION II ? FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS- CONTINUED Responsible Officials Mr. Rolando Leon Rivera, Finance Department Director Estimated Completion Date In process
Show full finding ▾Hide full finding ▴SECTION II ? FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS- CONTINUED Finding Number: 2020-006 Compliance Requirement: Reporting Category: Financial, Internal Control Weakness and Noncompliance Criteria OMB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal years ending after December 25, 2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. OMB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (h) (1) and (2)(B) establish that the non-Federal Organization shall transmit the reporting package, which shall include the non-Federal Organization's financial statements, schedule of expenditures of Federal awards, corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504, when the 9-month timeframe would place an undue burden on the non-Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2019 of the Municipality with due date of March 31, 2020 was submitted after the 9 months deadline. The Single Audit related to such period was completed after the 9 months deadline. Also, the Executive Office of the President issued a notice of waivers from M-20-17 memorandum to extend the Single Audit Submission (2 CFR 200.512) which establish ?Awarding agencies, in their capacity as cognizant or oversight agencies for audit, should allow recipients and subrecipients that have not yet filed their single audits with the Federal Audit Clearinghouse as of the date of the issuance of this memorandum that have fiscal year-ends through June 30, 2020, to delay the completion and submission of the Single Audit reporting package, as required under Subpart F of 2 CFR ? 200.501 -Audit Requirements, to six (6) months beyond the normal due date. No further action by awarding agencies is required to enact this extension. This extension does not require individual recipients and subrecipients to seek approval for the extension by the cognizant or oversight agency for audit; however, recipients and subrecipients should maintain documentation of the reason for the delayed filing. Recipients and subrecipients taking advantage of SECTION II ? FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS- CONTINUED this extension would still qualify as a "low-risk auditee" under the criteria of 2 CFR ? 200.520 (a)- Criteria for a low-risk auditee.? Cause The municipality did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the municipality in the due date established by the Single Audit Act. Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represent a significant problem. The municipality will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding None Recommendations The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9 months deadline. Views of responsible officials We will give instructions to the Finance Department to submit, in a timely manner, all the required financial information, to our financial consultant and the external auditors, to comply with the deadline for the submission of the Single Audit Report for the fiscal year 2021-2022, which is March 31, 2023. SECTION II ? FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS- CONTINUED Responsible Officials Mr. Rolando Leon Rivera, Finance Department Director Estimated Completion Date In process
We will give instructions to the Finance Department to submit, in a timely manner, all the required financial information, to our financial consultant and the external auditors, to comply with the deadline for the submission of the Single Audit Report for the fiscal year 2021-2022, which is March 31, 2023. Implementation date: In process Responsible Person: Mr. Rolando Leon Rivera Finance Department Director
FAC accepted this audit on March 28, 2021 — management decision was due September 28, 2021.
FAC accepted this audit on October 21, 2019 — management decision was due April 21, 2020.
FAC accepted this audit on January 30, 2019 — management decision was due July 30, 2019.
FAC accepted this audit on March 30, 2017 — management decision was due September 30, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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