EIN: 660434057
UEI: YM7NMR25BFT3
Audited by: ROMAN TORO & CO., CONTADORES PUBLICOS AUTORIZADOS, C.S.P.
Oversight agency: 10 [Department of Agriculture]
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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 February 4, 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 August 4, 2026 (28 days ago).
What is a management decision? →FAC accepted this audit on March 26, 2026 — management decision was due September 26, 2026.
FAC accepted this audit on December 19, 2024 — management decision was due June 19, 2025.
FAC accepted this audit on March 25, 2025 — management decision was due September 25, 2025.
FAC accepted this audit on December 29, 2023 — management decision was due June 29, 2024.
Finding Number 2023-002 Federal Agency: Pass-Through Agency: U.S. Department of the Treasury Puerto Rico Fiscal Agency and Financial Advisory Authority Program: Coronavirus State and Local Discal Recovery Funds (Assistance Listing No. 21.027) Compliance Requirement: Reporting – Special Reporting (L) Type Of Finding: Material Weakness (MW) / Instance of Noncompliance (NC) Condition During the fiscal year, the Municipality administered funds from the Coronavirus State and Local Fiscal Recovery Funds, this allocation was granted directly from the Federal government and through Puerto Rico Fiscal Agency and Financial Advisory Authority, respectively. In our Reporting Test, we evaluated three monthly reports submitted to the Puerto Rico Fiscal Agency and Financial Advisory Authority. We found that the Municipality submitted two of the three reports late, but we noted that the reports were submitted consistently on time from March 2023 through June 2023. Also, we evaluated the annual Project and Expenditure Report submitted to the U.S. Department of Treasury. We determined that the report was submitted on time. Criteria The Municipal Strengthening Fund Transfer Agreement, Clause 5.1, states that the Transferee shall submit reports as the Transferor determines are needed to verify use of the funds and compliance with conditions that are imposed on the Transfer, 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 Transfer Plan, on Exhibit A, establishes that starting on the 15th day of the month following receipt of the funds, and by the 15th day of each month, the Transferee will submit a Use of Funds Report for the prior month’s expenses. Also, on the Municipal Strengthening Fund Program Guidelines, the Puerto Rico Fiscal Agency and Financial Advisory Authority specified on the Reporting Requirements Section that the recipients are required to submit monthly financial reports using the reporting template provided by the program. Cause of Condition The Municipality does not have adequate monitoring for the activity and the reports. Effect of Condition The program is not in compliance with the Reporting Requirements as established in the contract agreement and guidelines. Recommendation The Municipality should establish a monitoring system to ensure compliance with requirements established by the pass-through agency such as submitting the reports during the 15th day of each month. Questioned Cost None Prior Year Findings No. Views of Responsible Officials and Planned Corrective Action We concur partially with the finding. The Municipality received strengthening funds, which require the filing of monthly reports, specifically on the 15th of each month. The Municipality acknowledges that it has not submitted certain reports specifically for the 15th of each month, however, they have been submitted monthly. The fact that the report was not submitted by a specific date is not synonymous with the municipality not adequately monitoring the program's activities. That is why we do not completely agree with what is stated in the cause of condition. To ensure that the report is submitted by the 15th of each month, since March 2023, a reminder with a notice was established in the calendar several days before the filing date. Implementation Date: Fiscal year 2023-2024 Responsible Person: CPA Marisol Rosa Acevedo Municipal Administrator
Show full finding ▾Hide full finding ▴Finding Number 2023-002 Federal Agency: Pass-Through Agency: U.S. Department of the Treasury Puerto Rico Fiscal Agency and Financial Advisory Authority Program: Coronavirus State and Local Discal Recovery Funds (Assistance Listing No. 21.027) Compliance Requirement: Reporting – Special Reporting (L) Type Of Finding: Material Weakness (MW) / Instance of Noncompliance (NC) Condition During the fiscal year, the Municipality administered funds from the Coronavirus State and Local Fiscal Recovery Funds, this allocation was granted directly from the Federal government and through Puerto Rico Fiscal Agency and Financial Advisory Authority, respectively. In our Reporting Test, we evaluated three monthly reports submitted to the Puerto Rico Fiscal Agency and Financial Advisory Authority. We found that the Municipality submitted two of the three reports late, but we noted that the reports were submitted consistently on time from March 2023 through June 2023. Also, we evaluated the annual Project and Expenditure Report submitted to the U.S. Department of Treasury. We determined that the report was submitted on time. Criteria The Municipal Strengthening Fund Transfer Agreement, Clause 5.1, states that the Transferee shall submit reports as the Transferor determines are needed to verify use of the funds and compliance with conditions that are imposed on the Transfer, 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 Transfer Plan, on Exhibit A, establishes that starting on the 15th day of the month following receipt of the funds, and by the 15th day of each month, the Transferee will submit a Use of Funds Report for the prior month’s expenses. Also, on the Municipal Strengthening Fund Program Guidelines, the Puerto Rico Fiscal Agency and Financial Advisory Authority specified on the Reporting Requirements Section that the recipients are required to submit monthly financial reports using the reporting template provided by the program. Cause of Condition The Municipality does not have adequate monitoring for the activity and the reports. Effect of Condition The program is not in compliance with the Reporting Requirements as established in the contract agreement and guidelines. Recommendation The Municipality should establish a monitoring system to ensure compliance with requirements established by the pass-through agency such as submitting the reports during the 15th day of each month. Questioned Cost None Prior Year Findings No. Views of Responsible Officials and Planned Corrective Action We concur partially with the finding. The Municipality received strengthening funds, which require the filing of monthly reports, specifically on the 15th of each month. The Municipality acknowledges that it has not submitted certain reports specifically for the 15th of each month, however, they have been submitted monthly. The fact that the report was not submitted by a specific date is not synonymous with the municipality not adequately monitoring the program's activities. That is why we do not completely agree with what is stated in the cause of condition. To ensure that the report is submitted by the 15th of each month, since March 2023, a reminder with a notice was established in the calendar several days before the filing date. Implementation Date: Fiscal year 2023-2024 Responsible Person: CPA Marisol Rosa Acevedo Municipal Administrator
COMMONWEALTH OF PUERTO RICO AUTONOMOUS MUNICIPALITY OF AGUADA CORRECTIVE ACTION PLAN FOR THE FISCAL YEAR ENDED JUNE 30, 2023 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2022 – June 30, 2023 Principal Executive: Hon. Christian E. Cortés Feliciano Fiscal Year: 2022-2023 Contact Person: Mrs. Geavelis Pérez Ruiz, Finance Director Phone: (787)868-6400 Original Finding Number: 2023-002 Statement of Concurrence or Nonconcurrence: We concur partially with the finding. Corrective Action: The Municipality received strengthening funds, which require the filing of monthly reports, specifically on the 15th of each month. The Municipality acknowledges that it has not submitted certain reports specifically for the 15th of each month, however, they have been submitted monthly. The fact that the report was not submitted by a specific date is not synonymous with the municipality not adequately monitoring the program's activities. That is why we do not completely agree with what is stated in the cause of condition. To ensure that the report is submitted by the 15th of each month, since March 2023, a reminder with a notice was established in the calendar several days before the filing date. Implementation Date: Fiscal year 2023-2024 Responsible Person: CPA Marisol Rosa Acevedo Municipal Administrator
FAC accepted this audit on March 28, 2024 — management decision was due September 28, 2024.
Finding Number 2023-002 Federal Agency: Pass-Through Agency: U.S. Department of the Treasury Puerto Rico Fiscal Agency and Financial Advisory Authority Program: Coronavirus State and Local Discal Recovery Funds (Assistance Listing No. 21.027) Compliance Requirement: Reporting – Special Reporting (L) Type Of Finding: Material Weakness (MW) / Instance of Noncompliance (NC) Condition During the fiscal year, the Municipality administered funds from the Coronavirus State and Local Fiscal Recovery Funds, this allocation was granted directly from the Federal government and through Puerto Rico Fiscal Agency and Financial Advisory Authority, respectively. In our Reporting Test, we evaluated three monthly reports submitted to the Puerto Rico Fiscal Agency and Financial Advisory Authority. We found that the Municipality submitted two of the three reports late, but we noted that the reports were submitted consistently on time from March 2023 through June 2023. Also, we evaluated the annual Project and Expenditure Report submitted to the U.S. Department of Treasury. We determined that the report was submitted on time. Criteria The Municipal Strengthening Fund Transfer Agreement, Clause 5.1, states that the Transferee shall submit reports as the Transferor determines are needed to verify use of the funds and compliance with conditions that are imposed on the Transfer, 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 Transfer Plan, on Exhibit A, establishes that starting on the 15th day of the month following receipt of the funds, and by the 15th day of each month, the Transferee will submit a Use of Funds Report for the prior month’s expenses. Also, on the Municipal Strengthening Fund Program Guidelines, the Puerto Rico Fiscal Agency and Financial Advisory Authority specified on the Reporting Requirements Section that the recipients are required to submit monthly financial reports using the reporting template provided by the program. Cause of Condition The Municipality does not have adequate monitoring for the activity and the reports. Effect of Condition The program is not in compliance with the Reporting Requirements as established in the contract agreement and guidelines. Recommendation The Municipality should establish a monitoring system to ensure compliance with requirements established by the pass-through agency such as submitting the reports during the 15th day of each month. Questioned Cost None Prior Year Findings No. Views of Responsible Officials and Planned Corrective Action We concur partially with the finding. The Municipality received strengthening funds, which require the filing of monthly reports, specifically on the 15th of each month. The Municipality acknowledges that it has not submitted certain reports specifically for the 15th of each month, however, they have been submitted monthly. The fact that the report was not submitted by a specific date is not synonymous with the municipality not adequately monitoring the program's activities. That is why we do not completely agree with what is stated in the cause of condition. To ensure that the report is submitted by the 15th of each month, since March 2023, a reminder with a notice was established in the calendar several days before the filing date. Implementation Date: Fiscal year 2023-2024 Responsible Person: CPA Marisol Rosa Acevedo Municipal Administrator
Show full finding ▾Hide full finding ▴Finding Number 2023-002 Federal Agency: Pass-Through Agency: U.S. Department of the Treasury Puerto Rico Fiscal Agency and Financial Advisory Authority Program: Coronavirus State and Local Discal Recovery Funds (Assistance Listing No. 21.027) Compliance Requirement: Reporting – Special Reporting (L) Type Of Finding: Material Weakness (MW) / Instance of Noncompliance (NC) Condition During the fiscal year, the Municipality administered funds from the Coronavirus State and Local Fiscal Recovery Funds, this allocation was granted directly from the Federal government and through Puerto Rico Fiscal Agency and Financial Advisory Authority, respectively. In our Reporting Test, we evaluated three monthly reports submitted to the Puerto Rico Fiscal Agency and Financial Advisory Authority. We found that the Municipality submitted two of the three reports late, but we noted that the reports were submitted consistently on time from March 2023 through June 2023. Also, we evaluated the annual Project and Expenditure Report submitted to the U.S. Department of Treasury. We determined that the report was submitted on time. Criteria The Municipal Strengthening Fund Transfer Agreement, Clause 5.1, states that the Transferee shall submit reports as the Transferor determines are needed to verify use of the funds and compliance with conditions that are imposed on the Transfer, 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 Transfer Plan, on Exhibit A, establishes that starting on the 15th day of the month following receipt of the funds, and by the 15th day of each month, the Transferee will submit a Use of Funds Report for the prior month’s expenses. Also, on the Municipal Strengthening Fund Program Guidelines, the Puerto Rico Fiscal Agency and Financial Advisory Authority specified on the Reporting Requirements Section that the recipients are required to submit monthly financial reports using the reporting template provided by the program. Cause of Condition The Municipality does not have adequate monitoring for the activity and the reports. Effect of Condition The program is not in compliance with the Reporting Requirements as established in the contract agreement and guidelines. Recommendation The Municipality should establish a monitoring system to ensure compliance with requirements established by the pass-through agency such as submitting the reports during the 15th day of each month. Questioned Cost None Prior Year Findings No. Views of Responsible Officials and Planned Corrective Action We concur partially with the finding. The Municipality received strengthening funds, which require the filing of monthly reports, specifically on the 15th of each month. The Municipality acknowledges that it has not submitted certain reports specifically for the 15th of each month, however, they have been submitted monthly. The fact that the report was not submitted by a specific date is not synonymous with the municipality not adequately monitoring the program's activities. That is why we do not completely agree with what is stated in the cause of condition. To ensure that the report is submitted by the 15th of each month, since March 2023, a reminder with a notice was established in the calendar several days before the filing date. Implementation Date: Fiscal year 2023-2024 Responsible Person: CPA Marisol Rosa Acevedo Municipal Administrator
COMMONWEALTH OF PUERTO RICO AUTONOMOUS MUNICIPALITY OF AGUADA CORRECTIVE ACTION PLAN FOR THE FISCAL YEAR ENDED JUNE 30, 2023 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2022 – June 30, 2023 Principal Executive: Hon. Christian E. Cortés Feliciano Fiscal Year: 2022-2023 Contact Person: Mrs. Geavelis Pérez Ruiz, Finance Director Phone: (787)868-6400 Original Finding Number: 2023-002 Statement of Concurrence or Nonconcurrence: We concur partially with the finding. Corrective Action: The Municipality received strengthening funds, which require the filing of monthly reports, specifically on the 15th of each month. The Municipality acknowledges that it has not submitted certain reports specifically for the 15th of each month, however, they have been submitted monthly. The fact that the report was not submitted by a specific date is not synonymous with the municipality not adequately monitoring the program's activities. That is why we do not completely agree with what is stated in the cause of condition. To ensure that the report is submitted by the 15th of each month, since March 2023, a reminder with a notice was established in the calendar several days before the filing date. Implementation Date: Fiscal year 2023-2024 Responsible Person: CPA Marisol Rosa Acevedo Municipal Administrator
FAC accepted this audit on June 29, 2023 — management decision was due December 29, 2023.
Finding 2022-002: Late submission of single audit report package Federal Programs: All Federal Agencies in the SEFA Criteria Title 2, Subtitle A, Chapter II, Part 200 named ?Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards? Subpart F- Audit Requirements, under 200.512 ?Report Submission? states that the audit shall be completed and the Data Collection Form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted to the Federal Clearinghouse designated by OMB within the earlier of 30 calendar days after receipt of the auditor's reports, or nine months after the end of the audit period. Condition The Municipality did not submit the single audit report and reporting package for the year ended June 30, 2022, to the Federal Audit Clearinghouse during the required submission deadline period. Cause Financial information contained in the Governmental-Wide and Governmental Funds Financial Statements was not available before the reporting package submission deadline. The financial information was provided after March 31, 2023. Effect The Municipality may be subject to additional compliance requirements imposed by the federal government such as the preparation and monitoring of a detailed audit submission schedule when requesting new loans or grant awards. Questioned Costs None Identification of a repeat finding None Recommendation We recommend that the Municipality should start the process of compiling and preparing the financial information to complete the Governmental-Wide and Governmental Funds Financial Statements and the Schedule of Expenditures of Federal Awards with enough time to assure that such information is available for the audit process, before March 31, and to provide it with enough time so the audit process can be completed before such due date. View of Responsible Official and Planned Corrective Action Plan Management concurs with the finding. Refer to the corrective action plan section of this report for details. Responsible Person Geavelis Perez Ruiz Finance Director Note: Mrs. Geavelis Perez Ruiz started as Finance Director on June 9, 2023, the Finance Director during the Single Audit period was Mr. Noe A. Ramirez Laracuente.
Show full finding ▾Hide full finding ▴Finding 2022-002: Late submission of single audit report package Federal Programs: All Federal Agencies in the SEFA Criteria Title 2, Subtitle A, Chapter II, Part 200 named ?Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards? Subpart F- Audit Requirements, under 200.512 ?Report Submission? states that the audit shall be completed and the Data Collection Form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted to the Federal Clearinghouse designated by OMB within the earlier of 30 calendar days after receipt of the auditor's reports, or nine months after the end of the audit period. Condition The Municipality did not submit the single audit report and reporting package for the year ended June 30, 2022, to the Federal Audit Clearinghouse during the required submission deadline period. Cause Financial information contained in the Governmental-Wide and Governmental Funds Financial Statements was not available before the reporting package submission deadline. The financial information was provided after March 31, 2023. Effect The Municipality may be subject to additional compliance requirements imposed by the federal government such as the preparation and monitoring of a detailed audit submission schedule when requesting new loans or grant awards. Questioned Costs None Identification of a repeat finding None Recommendation We recommend that the Municipality should start the process of compiling and preparing the financial information to complete the Governmental-Wide and Governmental Funds Financial Statements and the Schedule of Expenditures of Federal Awards with enough time to assure that such information is available for the audit process, before March 31, and to provide it with enough time so the audit process can be completed before such due date. View of Responsible Official and Planned Corrective Action Plan Management concurs with the finding. Refer to the corrective action plan section of this report for details. Responsible Person Geavelis Perez Ruiz Finance Director Note: Mrs. Geavelis Perez Ruiz started as Finance Director on June 9, 2023, the Finance Director during the Single Audit period was Mr. Noe A. Ramirez Laracuente.
Finding No. 2022-002: Late submission of single audit report package. Category: Federal Programs Internal Controls and Noncompliance Management Response and/or Action: To ensure the financial information to complete the Government Wide and Governmental Funds financial statements and Schedule of Expenditures of Federal Awards are available at a timely basis and free of errors, the Municipality has implemented a plan to improve the accounting reconciliation function and correct the financial system accounting balances that had not been in agreement with the financial statements for many previous years, therefore, was required extensive analyses of the information provided by the accounting system that results in significant manual adjusting entries to present accurate financial information in accordance with GAAP. The plan also includes training of current employees, recruiting capable finance personnel, timely oversight from the Finance Director over the year end reconciliation process and correction of errors. This will improve the flow and accuracy of the financial information and accounting balances being produced by the finance department that in turn will result in time savings and a more effective process of preparation of financial statements that will lead to having them available with enough time to be audited by the corresponding audit firm and be submitted to the federal government in compliance with the March 31 deadline. As mentioned before, part of this lag in accounting and reporting of the financial statements have been caused by the limitation on the personnel to perform accounting and financial reporting tasks on a timely basis due to a series of uncontrollable weather and COVID health factors that required the use of the personnel to address the emergency for the benefit of the community. In September 2022 we suffer a hurricane strike (Hurricane Fiona) that partially affected the working conditions of the municipal employees and their duties assigned. All the municipal employees were assigned also to attend the Fiona effects in the community, delivery of goods, coordination and attending the immediate needs, therefore the municipal efforts were directed to assist in hurricane recovery and address the community needs rather than at focus on administrative duties. Also, we still are working with the work integration of finance and administrative after the COVID Pandemic, we still have some employees that prefer to work on a remote status and part time basis. Part of these conditions had caused some of the delays in recording and submissions, however these are not intentionally situations. Such situations are in process of analysis and improvement taking in consideration the size of the municipality and its actual financial and budgetary resources. Assigned Responsibility: Geavelis Perez Ruiz, Finance Director Anticipated Completion Date: June 30, 2023
FAC accepted this audit on November 2, 2022 — management decision was due May 2, 2023.
Finding 2022-002: Late submission of single audit report package Federal Programs: All Federal Agencies in the SEFA Criteria Title 2, Subtitle A, Chapter II, Part 200 named ?Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards? Subpart F- Audit Requirements, under 200.512 ?Report Submission? states that the audit shall be completed and the Data Collection Form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted to the Federal Clearinghouse designated by OMB within the earlier of 30 calendar days after receipt of the auditor's reports, or nine months after the end of the audit period. Condition The Municipality did not submit the single audit report and reporting package for the year ended June 30, 2022, to the Federal Audit Clearinghouse during the required submission deadline period. Cause Financial information contained in the Governmental-Wide and Governmental Funds Financial Statements was not available before the reporting package submission deadline. The financial information was provided after March 31, 2023. Effect The Municipality may be subject to additional compliance requirements imposed by the federal government such as the preparation and monitoring of a detailed audit submission schedule when requesting new loans or grant awards. Questioned Costs None Identification of a repeat finding None Recommendation We recommend that the Municipality should start the process of compiling and preparing the financial information to complete the Governmental-Wide and Governmental Funds Financial Statements and the Schedule of Expenditures of Federal Awards with enough time to assure that such information is available for the audit process, before March 31, and to provide it with enough time so the audit process can be completed before such due date. View of Responsible Official and Planned Corrective Action Plan Management concurs with the finding. Refer to the corrective action plan section of this report for details. Responsible Person Geavelis Perez Ruiz Finance Director Note: Mrs. Geavelis Perez Ruiz started as Finance Director on June 9, 2023, the Finance Director during the Single Audit period was Mr. Noe A. Ramirez Laracuente.
Show full finding ▾Hide full finding ▴Finding 2022-002: Late submission of single audit report package Federal Programs: All Federal Agencies in the SEFA Criteria Title 2, Subtitle A, Chapter II, Part 200 named ?Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards? Subpart F- Audit Requirements, under 200.512 ?Report Submission? states that the audit shall be completed and the Data Collection Form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted to the Federal Clearinghouse designated by OMB within the earlier of 30 calendar days after receipt of the auditor's reports, or nine months after the end of the audit period. Condition The Municipality did not submit the single audit report and reporting package for the year ended June 30, 2022, to the Federal Audit Clearinghouse during the required submission deadline period. Cause Financial information contained in the Governmental-Wide and Governmental Funds Financial Statements was not available before the reporting package submission deadline. The financial information was provided after March 31, 2023. Effect The Municipality may be subject to additional compliance requirements imposed by the federal government such as the preparation and monitoring of a detailed audit submission schedule when requesting new loans or grant awards. Questioned Costs None Identification of a repeat finding None Recommendation We recommend that the Municipality should start the process of compiling and preparing the financial information to complete the Governmental-Wide and Governmental Funds Financial Statements and the Schedule of Expenditures of Federal Awards with enough time to assure that such information is available for the audit process, before March 31, and to provide it with enough time so the audit process can be completed before such due date. View of Responsible Official and Planned Corrective Action Plan Management concurs with the finding. Refer to the corrective action plan section of this report for details. Responsible Person Geavelis Perez Ruiz Finance Director Note: Mrs. Geavelis Perez Ruiz started as Finance Director on June 9, 2023, the Finance Director during the Single Audit period was Mr. Noe A. Ramirez Laracuente.
Finding No. 2022-002: Late submission of single audit report package. Category: Federal Programs Internal Controls and Noncompliance Management Response and/or Action: To ensure the financial information to complete the Government Wide and Governmental Funds financial statements and Schedule of Expenditures of Federal Awards are available at a timely basis and free of errors, the Municipality has implemented a plan to improve the accounting reconciliation function and correct the financial system accounting balances that had not been in agreement with the financial statements for many previous years, therefore, was required extensive analyses of the information provided by the accounting system that results in significant manual adjusting entries to present accurate financial information in accordance with GAAP. The plan also includes training of current employees, recruiting capable finance personnel, timely oversight from the Finance Director over the year end reconciliation process and correction of errors. This will improve the flow and accuracy of the financial information and accounting balances being produced by the finance department that in turn will result in time savings and a more effective process of preparation of financial statements that will lead to having them available with enough time to be audited by the corresponding audit firm and be submitted to the federal government in compliance with the March 31 deadline. As mentioned before, part of this lag in accounting and reporting of the financial statements have been caused by the limitation on the personnel to perform accounting and financial reporting tasks on a timely basis due to a series of uncontrollable weather and COVID health factors that required the use of the personnel to address the emergency for the benefit of the community. In September 2022 we suffer a hurricane strike (Hurricane Fiona) that partially affected the working conditions of the municipal employees and their duties assigned. All the municipal employees were assigned also to attend the Fiona effects in the community, delivery of goods, coordination and attending the immediate needs, therefore the municipal efforts were directed to assist in hurricane recovery and address the community needs rather than at focus on administrative duties. Also, we still are working with the work integration of finance and administrative after the COVID Pandemic, we still have some employees that prefer to work on a remote status and part time basis. Part of these conditions had caused some of the delays in recording and submissions, however these are not intentionally situations. Such situations are in process of analysis and improvement taking in consideration the size of the municipality and its actual financial and budgetary resources. Assigned Responsibility: Geavelis Perez Ruiz, Finance Director Anticipated Completion Date: June 30, 2023
FAC accepted this audit on September 28, 2021 — management decision was due March 28, 2022.
FAC accepted this audit on October 10, 2022 — management decision was due April 10, 2023.
FAC accepted this audit on June 24, 2021 — management decision was due December 24, 2021.
The Municipality?s has $168,713.63 of program funds in unsecured deposits in the Puerto Rico Government Development Bank (GDB) which already completed the restructuring and wind-down of its fundamental operations. The Municipality cannot currently access the funds, and the likelihood of recovery of the entire balance is unknown. Context: The Municipality received these funds as part of the grant by the Puerto Rico Governor?s Office?s Authorized Representative for Tropical Storm Irene (4017-DR-PR) and were deposited by the grant agency in the GDB in 2012. The Municipality did not have choice as to which financial institution the funds would be deposited, and the selection of the GDB as the depository institution was made by the pass-through grant agency. While the Municipality was planning program activities, the financial situation of the GDB worsened; however, the funds were not transferred to a federally-insured financial institution which would secure the funds. By mid-2016, the GDB was experiencing financial difficulties in meeting its obligations and limited the amount of withdrawals by depositors in July 2016. By early 2017 no deposits were permitted to be withdrawn. The GDB completed its restructuring and wind down in March 2018. Criteria: 2 CFR 200.426 states that losses (whether actual or estimated) arising from uncollectable accounts and other claims are unallowable. Related collection costs and related legal costs arising from such debts after they have been determined to be uncollectable are also unallowable. Cause: The grant award was deposited by the pass-through grant agency in a financial institution whose deposits were unsecured, instead of a private financial institution with federally-insured deposits, and the Municipality had not yet completed the necessary activities to request disbursement of funds before the GDB entered into liquidation. Effect: The Municipality can no longer access the funds it received to perform the program?s required activities. Auditor?s recommendation: The Municipality should continue in its efforts to recover the entire amount of grant awards funds from the GDB, while setting aside an amount equal to the program funds in GDB from its own resources and contact the grantor as to the continuance of program activities within the program?s compliance requirements. The Municipality should also request all grantors that any grants be deposited in financial institutions insured by the FDIC or other federal insurance entity. Views of responsible officials and corrective actions: On June 15, 2021, the information related to the return of the funds from Tropical Storm Irene was submitted to the AAFAF for evaluation. Currently, the Municipality of Aguada is waiting for the response of AAFAF. Audit finding status: Unresolved.
Show full finding ▾Hide full finding ▴2020-001 Type of finding: Federal program. Situation: Significant deficiency; Compliance of federal regulations Federal Program: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) (CFDA 97.036) Compliance Requirements: Allowable Cost / Cost Principle (B); Cash Management (C) Prior-Year(s) Audit Finding(s): 2017-002, 2018-001, 2019-001. Questioned Costs: $168,713.63 Condition: The Municipality?s has $168,713.63 of program funds in unsecured deposits in the Puerto Rico Government Development Bank (GDB) which already completed the restructuring and wind-down of its fundamental operations. The Municipality cannot currently access the funds, and the likelihood of recovery of the entire balance is unknown. Context: The Municipality received these funds as part of the grant by the Puerto Rico Governor?s Office?s Authorized Representative for Tropical Storm Irene (4017-DR-PR) and were deposited by the grant agency in the GDB in 2012. The Municipality did not have choice as to which financial institution the funds would be deposited, and the selection of the GDB as the depository institution was made by the pass-through grant agency. While the Municipality was planning program activities, the financial situation of the GDB worsened; however, the funds were not transferred to a federally-insured financial institution which would secure the funds. By mid-2016, the GDB was experiencing financial difficulties in meeting its obligations and limited the amount of withdrawals by depositors in July 2016. By early 2017 no deposits were permitted to be withdrawn. The GDB completed its restructuring and wind down in March 2018. Criteria: 2 CFR 200.426 states that losses (whether actual or estimated) arising from uncollectable accounts and other claims are unallowable. Related collection costs and related legal costs arising from such debts after they have been determined to be uncollectable are also unallowable. Cause: The grant award was deposited by the pass-through grant agency in a financial institution whose deposits were unsecured, instead of a private financial institution with federally-insured deposits, and the Municipality had not yet completed the necessary activities to request disbursement of funds before the GDB entered into liquidation. Effect: The Municipality can no longer access the funds it received to perform the program?s required activities. Auditor?s recommendation: The Municipality should continue in its efforts to recover the entire amount of grant awards funds from the GDB, while setting aside an amount equal to the program funds in GDB from its own resources and contact the grantor as to the continuance of program activities within the program?s compliance requirements. The Municipality should also request all grantors that any grants be deposited in financial institutions insured by the FDIC or other federal insurance entity. Views of responsible officials and corrective actions: On June 15, 2021, the information related to the return of the funds from Tropical Storm Irene was submitted to the AAFAF for evaluation. Currently, the Municipality of Aguada is waiting for the response of AAFAF. Audit finding status: Unresolved.
On June 15, 2021, the information related to the return of the funds from Tropical Storm Irene was submitted to the AAFAF for evaluation. Appendix 1 includes evidence in this regard. Currently, the Municipality of Aguada is waiting for response of AAFAF.
2019-001
The Municipality used CDL funds in the amount of $35,000 to settle a judicial transaction of alleged political discrimination and violation of civil rights of an ex-employee of the Municipality. Context: Out of a total of twenty- five (25) disbursement vouchers selected for testing, we found one (1) disbursement voucher of $35,000 for the payment of a settlement of a judicial transaction. Criteria: As per 44CFR 206.361, local governments shall use the loaned funds to carry on existing local government functions of a municipal operation character or to expand such functions to meet disaster-related needs. 2CFR 200.441 states that costs resulting from non-Federal entity violations of, alleged violations of, failure to comply with, Federal, state, tribal, local or foreign laws and regulations are unallowable, except when incurred as a result of compliance with specific provisions of the Federal award, or with prior written approval of the Federal awarding agency. Cause: The Municipality did not request prior written approval of the Federal awarding agency for the disbursement of $35,000 of federal funds to cover the settlement of a judicial transaction of alleged political discrimination and violation of civil rights of an ex-employee of the Municipality. Effect: The Municipality expended $35,000 of federal funds in unallowed activities. Auditor?s recommendation: The Municipality should implement internal controls and procedures to assure that costs expended with federal funds are in compliance with the provisions mentioned above. Views of Responsible officials and corrective actions: The Municipality has identified the ID RED202102, which is not a restricted fund, and will make the reclassification of the expense. A written letter will be submitted to the Finance Director prohibiting the practice of using federal funds for unauthorized uses. Audit Status: In process of compliance. Estimated completion date is June 30, 2021.
Show full finding ▾Hide full finding ▴2020-002 Type of finding: Federal Award Situation: Significant deficiency; compliance with federal regulations Federal Program: Community Disaster Loan (CFDA 97.036) Compliance Requirement: Activities allowed and Unallowed, Allowable Costs/Cost Principles Prior-Year(s) Audit Finding(s): None Questioned Costs: $35,000 Condition: The Municipality used CDL funds in the amount of $35,000 to settle a judicial transaction of alleged political discrimination and violation of civil rights of an ex-employee of the Municipality. Context: Out of a total of twenty- five (25) disbursement vouchers selected for testing, we found one (1) disbursement voucher of $35,000 for the payment of a settlement of a judicial transaction. Criteria: As per 44CFR 206.361, local governments shall use the loaned funds to carry on existing local government functions of a municipal operation character or to expand such functions to meet disaster-related needs. 2CFR 200.441 states that costs resulting from non-Federal entity violations of, alleged violations of, failure to comply with, Federal, state, tribal, local or foreign laws and regulations are unallowable, except when incurred as a result of compliance with specific provisions of the Federal award, or with prior written approval of the Federal awarding agency. Cause: The Municipality did not request prior written approval of the Federal awarding agency for the disbursement of $35,000 of federal funds to cover the settlement of a judicial transaction of alleged political discrimination and violation of civil rights of an ex-employee of the Municipality. Effect: The Municipality expended $35,000 of federal funds in unallowed activities. Auditor?s recommendation: The Municipality should implement internal controls and procedures to assure that costs expended with federal funds are in compliance with the provisions mentioned above. Views of Responsible officials and corrective actions: The Municipality has identified the ID RED202102, which is not a restricted fund, and will make the reclassification of the expense. A written letter will be submitted to the Finance Director prohibiting the practice of using federal funds for unauthorized uses. Audit Status: In process of compliance. Estimated completion date is June 30, 2021.
The Municipality has identified the ID RED202102, which is not restricted funds, and would made the reclassification of the expense. A written letter would be submitted to the Finance Director prohibiting the practice of using federal funds for unauthorized uses.
FAC accepted this audit on March 22, 2020 — management decision was due September 22, 2020.
The Municipality?s has $168,713.63 of program funds in unsecured deposits in the Puerto Rico Government Development Bank (GDB) which is currently in the process of liquidation. The Municipality cannot currently access the funds, and the likelihood of recovery of the entire balance is unknown. Context: The Municipality received these funds as part of the grant by the Puerto Rico Governor?s Office?s Authorized Representative for Hurricane Irene (4017-DR-PR) and were deposited by the grant agency in the GDB in 2012. The Municipality did not have choice as to which financial institution the funds would be deposited, and the selection of the GDB as the depository institution was made by the pass-through grant agency. While the Municipality was planning program activities, the financial situation of the GDB worsened; however, the funds were not transferred to a federally-insured financial institution which would secure the funds. By mid-2016, the GDB was experiencing financial difficulties in meeting its obligations and limited the amount of withdrawals by depositors in July 2016. By early 2017, no deposits were permitted to be withdrawn, and the GDB is currently preparing for its eventual liquidation. Criteria: 2 CFR 200.426 states that losses (whether actual or estimated) arising from uncollectable accounts and other claims are unallowable. Related collection costs and related legal costs arising from such debts after they have been determined to be uncollectable are also unallowable. Cause: The grant award was deposited by the pass-through grant agency in a financial institution whose deposits were unsecured, instead of a private financial institution with federally-insured deposits, and the Municipality had not yet completed the necessary activities to request disbursement of funds before the GDB entered into liquidation. Effect: The Municipality can no longer access the funds it received to perform the program?s required activities. Auditor?s recommendation: The Municipality should continue in its efforts to recover the entire amount of grant awards funds from the GDB, while setting aside an amount equal to the program funds in GDB from its own resources and contact the grantor as to the continuance of program activities within the program?s compliance requirements. The Municipality should also request all grantors that any grants be deposited in financial institutions insured by the FDIC or other federal insurance entity. Views of responsible officials and corrective actions: The Municipality will make the necessary efforts with the GDB to recover the funds and verify the projects? conclusion. Also, the Municipality will coordinate with all grantors that any federal grants be deposited in financial institutions insured by the FDIC. Audit finding status: Unresolved.
Show full finding ▾Hide full finding ▴2019-001 Type of finding: Federal program. Situation: Significant deficiency; Compliance of federal regulations Federal Program: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) (CFDA 97.036) Compliance Requirements: Allowable Cost / Cost Principle (B); Cash Management (C) Prior-Year(s) Audit Finding(s): 2018-001. Questioned Costs: $168,713.63 Condition: The Municipality?s has $168,713.63 of program funds in unsecured deposits in the Puerto Rico Government Development Bank (GDB) which is currently in the process of liquidation. The Municipality cannot currently access the funds, and the likelihood of recovery of the entire balance is unknown. Context: The Municipality received these funds as part of the grant by the Puerto Rico Governor?s Office?s Authorized Representative for Hurricane Irene (4017-DR-PR) and were deposited by the grant agency in the GDB in 2012. The Municipality did not have choice as to which financial institution the funds would be deposited, and the selection of the GDB as the depository institution was made by the pass-through grant agency. While the Municipality was planning program activities, the financial situation of the GDB worsened; however, the funds were not transferred to a federally-insured financial institution which would secure the funds. By mid-2016, the GDB was experiencing financial difficulties in meeting its obligations and limited the amount of withdrawals by depositors in July 2016. By early 2017, no deposits were permitted to be withdrawn, and the GDB is currently preparing for its eventual liquidation. Criteria: 2 CFR 200.426 states that losses (whether actual or estimated) arising from uncollectable accounts and other claims are unallowable. Related collection costs and related legal costs arising from such debts after they have been determined to be uncollectable are also unallowable. Cause: The grant award was deposited by the pass-through grant agency in a financial institution whose deposits were unsecured, instead of a private financial institution with federally-insured deposits, and the Municipality had not yet completed the necessary activities to request disbursement of funds before the GDB entered into liquidation. Effect: The Municipality can no longer access the funds it received to perform the program?s required activities. Auditor?s recommendation: The Municipality should continue in its efforts to recover the entire amount of grant awards funds from the GDB, while setting aside an amount equal to the program funds in GDB from its own resources and contact the grantor as to the continuance of program activities within the program?s compliance requirements. The Municipality should also request all grantors that any grants be deposited in financial institutions insured by the FDIC or other federal insurance entity. Views of responsible officials and corrective actions: The Municipality will make the necessary efforts with the GDB to recover the funds and verify the projects? conclusion. Also, the Municipality will coordinate with all grantors that any federal grants be deposited in financial institutions insured by the FDIC. Audit finding status: Unresolved.
See Corrective Action Plan for table.
2018-001
FAC accepted this audit on March 28, 2019 — management decision was due September 28, 2019.
GSA_MIGRATION
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GSA_MIGRATION
2017-002
FAC accepted this audit on March 27, 2018 — management decision was due September 27, 2018.
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on April 25, 2017 — management decision was due October 25, 2017.
FAC accepted this audit on June 13, 2017 — management decision was due December 13, 2017.
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