EIN: 660574914
UEI: SVH3DEXB1R84
Data as of August 21, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on October 29, 2025. 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 April 29, 2026 (115 days ago).
What is a management decision? →During a performance review conducted by the U.S. Department of Housing and Urban Development (HUD), the Institution was found to have expended $247,000 in federal funds outside the period of performance established for the Emergency Shelter Grant Program under the CARES Act. These expenditures were not in accordance with federal requirements and were deemed unallowable by HUD. Effect: The Institution incurred unallowable costs totaling $247,000. As a result, HUD has required that the Institution return these funds. Noncompliance with period-of-performance requirements can also increase the risk of future disallowances and may impact eligibility for future federal funding. Cause: The noncompliance resulted from the lack of effective internal controls to monitor the period of performance, limited communication between departments, and insufficient knowledge of federal grant requirements within the accounting department. There was a lack of formal review of the funding agreement terms before processing reimbursements or direct charges, which led to the oversight. Recommendations: We recommend that the Institution implement the following corrective actions: 1. Implement a Period Monitoring System: Establish a formal process for tracking the period of performance for each grant, with automatic alerts or calendar reminders for start and end dates. 2. Grant Agreement Review Procedures: Require a formal review of grant agreements and performance periods prior to incurring or approving expenses to ensure compliance. 3. Training for Finance and Program Staff: Provide training on Uniform Guidance cost principles and federal compliance requirements to staff involved in program administration and finance. 4. Periodic Reconciliation: Conduct periodic reconciliations of expenses charged to federal grants to ensure they are within the allowed timeframe and scope. 5. Communicate with Auditors: Work closely with the external auditors to ensure that any potential delays in the audit process are identified early and mitigated to meet the submission deadline. Questioned cost: $247,000 Sampling was statistically valid: Yes
Show full finding ▾Hide full finding ▴Criteria: According to 2 CFR § 200.77 and § 200.343 of the Uniform Guidance, federal awards must be obligated and expended only during the authorized period of performance as stated in the award documents. Expenditures incurred outside of this time frame are considered unallowable and subject to repayment. Condition: During a performance review conducted by the U.S. Department of Housing and Urban Development (HUD), the Institution was found to have expended $247,000 in federal funds outside the period of performance established for the Emergency Shelter Grant Program under the CARES Act. These expenditures were not in accordance with federal requirements and were deemed unallowable by HUD. Effect: The Institution incurred unallowable costs totaling $247,000. As a result, HUD has required that the Institution return these funds. Noncompliance with period-of-performance requirements can also increase the risk of future disallowances and may impact eligibility for future federal funding. Cause: The noncompliance resulted from the lack of effective internal controls to monitor the period of performance, limited communication between departments, and insufficient knowledge of federal grant requirements within the accounting department. There was a lack of formal review of the funding agreement terms before processing reimbursements or direct charges, which led to the oversight. Recommendations: We recommend that the Institution implement the following corrective actions: 1. Implement a Period Monitoring System: Establish a formal process for tracking the period of performance for each grant, with automatic alerts or calendar reminders for start and end dates. 2. Grant Agreement Review Procedures: Require a formal review of grant agreements and performance periods prior to incurring or approving expenses to ensure compliance. 3. Training for Finance and Program Staff: Provide training on Uniform Guidance cost principles and federal compliance requirements to staff involved in program administration and finance. 4. Periodic Reconciliation: Conduct periodic reconciliations of expenses charged to federal grants to ensure they are within the allowed timeframe and scope. 5. Communicate with Auditors: Work closely with the external auditors to ensure that any potential delays in the audit process are identified early and mitigated to meet the submission deadline. Questioned cost: $247,000 Sampling was statistically valid: Yes
Condition: During the audit, it was identified that $247,000 in federal funds were expended outside of the authorized period of performance for the Emergency Shelter Grant Program under the CARES Act. These expenditures were deemed unallowable by HUD and required repayment. The issue resulted from the lack of an effective monitoring system to track grant performance periods and ensure compliance with federal requirements. Planned Corrective Action: 1. Implement a Grant Period Monitoring System: The organization will establish a formal process for tracking the start and end dates of each grant’s period of performance, including automated alerts and internal checklists. 2. Strengthen Internal Controls: Develop procedures to ensure all expenses are reviewed and approved based on the grant’s performance period before payment or reimbursement/ 3. Staff Training: Provide mandatory annual training for fiscal and program staff on Uniform Guidance cost principles, compliance requirements, and federal reporting standards. 4. Pre-Audit Reconciliation: Conduct quarterly reconciliations of grant expenses to verify compliance with the authorized periods and allowable cost principles. 5. Documentation Submitted to HUD: The organization has submitted supporting documentation and justifications to HUD to validate the expenditures incurred outside the contractual performance period. These expenditures were related to payroll and operational costs within the same program operation. The entity awaits HUD’s determination and will comply with any final resolution or additional corrective guidance provided.
2022-001
The Institution did not submit its Single Audit report for the fiscal year ended June 30, 2023 to the Federal Audit Clearinghouse (FAC) within the required timeframe. The report was due within nine months after the end of the fiscal year, as per federal regulations. As of the report date, has not been submitted. Best practices, as highlighted by the Government Finance Officers Association (GFOA) and the Council on Financial Assistance Reform (COFAR), recommend that entities establish internal processes to ensure compliance with federal reporting deadlines, such as implementing a calendar of key reporting dates and assigning specific responsibilities to team members to monitor and manage audit reporting submissions. Effect: Failure to submit the Single Audit report timely could result in non-compliance with federal regulations, jeopardizing the Institution’s eligibility to receive future federal awards or funding. Additionally, late submissions may lead to increased scrutiny from oversight agencies and affect the entity’s reputation with grantors and other stakeholders. Cause: The late submission appears to have resulted from a combination of factors, including: • Delays in completing the financial close and audit process due to significant deficiencies in the financial closing and reporting disclosed in finding 2023-II-1 and resource constraints, turnover in accounting personnel, or unexpected audit complexities. • A lack of internal processes and controls to monitor and ensure timely submission of the Single Audit report to the FAC. Recommendations: We recommend that the Institution implement the following actions to ensure timely submission of the Single Audit report in the future: 1. Establish a Compliance Calendar: Create a detailed compliance calendar that includes key deadlines for the Single Audit submission, as well as internal milestones leading up to the submission date. This calendar should be regularly reviewed and updated. 2. Assign Responsibility: Designate a specific individual or team within the organization to monitor the audit process and ensure that the submission to the FAC occurs within the required timeframe. 3. Implement Review Procedures: Institute formal review and sign-off procedures for audit deliverables, with specific checkpoints to ensure that the audit report is finalized well before the submission deadline. 4. Communicate with Auditors: Work closely with the external auditors to ensure that any potential delays in the audit process are identified early and mitigated to meet the submission deadline. Questioned cost: None Sampling was statistically valid: N/A
Show full finding ▾Hide full finding ▴Criteria: According to 2 CFR § 200.512 (Report Submission) of the Uniform Guidance, non-federal entities that expend $750,000 or more in federal awards during the fiscal year are required to submit the audit report, including the financial statements and the Schedule of Expenditures of Federal Awards (SEFA), to the FAC no later than nine months after the end of the fiscal year or 30 days after receipt of the auditor’s report, whichever is earlier. Condition: The Institution did not submit its Single Audit report for the fiscal year ended June 30, 2023 to the Federal Audit Clearinghouse (FAC) within the required timeframe. The report was due within nine months after the end of the fiscal year, as per federal regulations. As of the report date, has not been submitted. Best practices, as highlighted by the Government Finance Officers Association (GFOA) and the Council on Financial Assistance Reform (COFAR), recommend that entities establish internal processes to ensure compliance with federal reporting deadlines, such as implementing a calendar of key reporting dates and assigning specific responsibilities to team members to monitor and manage audit reporting submissions. Effect: Failure to submit the Single Audit report timely could result in non-compliance with federal regulations, jeopardizing the Institution’s eligibility to receive future federal awards or funding. Additionally, late submissions may lead to increased scrutiny from oversight agencies and affect the entity’s reputation with grantors and other stakeholders. Cause: The late submission appears to have resulted from a combination of factors, including: • Delays in completing the financial close and audit process due to significant deficiencies in the financial closing and reporting disclosed in finding 2023-II-1 and resource constraints, turnover in accounting personnel, or unexpected audit complexities. • A lack of internal processes and controls to monitor and ensure timely submission of the Single Audit report to the FAC. Recommendations: We recommend that the Institution implement the following actions to ensure timely submission of the Single Audit report in the future: 1. Establish a Compliance Calendar: Create a detailed compliance calendar that includes key deadlines for the Single Audit submission, as well as internal milestones leading up to the submission date. This calendar should be regularly reviewed and updated. 2. Assign Responsibility: Designate a specific individual or team within the organization to monitor the audit process and ensure that the submission to the FAC occurs within the required timeframe. 3. Implement Review Procedures: Institute formal review and sign-off procedures for audit deliverables, with specific checkpoints to ensure that the audit report is finalized well before the submission deadline. 4. Communicate with Auditors: Work closely with the external auditors to ensure that any potential delays in the audit process are identified early and mitigated to meet the submission deadline. Questioned cost: None Sampling was statistically valid: N/A
Condition: The institution did not submit its Single Audit report for the fiscal year ended June 30, 2022 to the Federal Audit Clearinghouse (FAC) within the required timeframe. The report was due within nine e months after the end of the fiscal year, as per federal regulations. As of the report date, has not been submitted. Best practices, as highlighted by the Government Finance Officers Association (GFOA) and the Council on Financial Assistance Reform (COFAR), recommend that entities establish internal processes to ensure compliance with federal reporting deadlines, such as implementing a calendar of key reporting dates and assigning specific responsibilities to team members to monitor and manage audit reporting submissions. Person responsible for Correction Action: Cristian Duarte, President & CEO Planned Corrective Action: We will submit the Single Audit report to the Federal Audit Clearinghouse (FAC) within the required timeframe. Anticipated Completion Date: On or before nine months after next fiscal year ended June 30, 2024.
2022-001
FAC accepted this audit on October 1, 2024 — management decision was due April 1, 2025.
The Institution did not submit its Single Audit report for the fiscal year ended June 30, 2022 to the Federal Audit Clearinghouse (FAC) within the required timeframe. The report was due within nine months after the end of the fiscal year, as per federal regulations. As of the report date, has not been submitted. Best practices, as highlighted by the Government Finance Officers Association (GFOA) and the Council on Financial Assistance Reform (COFAR), recommend that entities establish internal processes to ensure compliance with federal reporting deadlines, such as implementing a calendar of key reporting dates and assigning specific responsibilities to team members to monitor and manage audit reporting submissions. Effect: Failure to submit the Single Audit report timely could result in non-compliance with federal regulations, jeopardizing the Institution’s eligibility to receive future federal awards or funding. Additionally, late submissions may lead to increased scrutiny from oversight agencies and affect the entity’s reputation with grantors and other stakeholders. Cause: The late submission appears to have resulted from a combination of factors, including: • Delays in completing the financial close and audit process due to significant deficiencies in the financial closing and reporting disclosed in finding 2022-II-1 and resource constraints, turnover in accounting personnel, or unexpected audit complexities. • A lack of internal processes and controls to monitor and ensure timely submission of the Single Audit report to the FAC. Recommendations: We recommend that the Institution implement the following actions to ensure timely submission of the Single Audit report in the future: 1. Establish a Compliance Calendar: Create a detailed compliance calendar that includes key deadlines for the Single Audit submission, as well as internal milestones leading up to the submission date. This calendar should be regularly reviewed and updated. 2. Assign Responsibility: Designate a specific individual or team within the organization to monitor the audit process and ensure that the submission to the FAC occurs within the required timeframe. 3. Implement Review Procedures: Institute formal review and sign-off procedures for audit deliverables, with specific checkpoints to ensure that the audit report is finalized well before the submission deadline. 4. Communicate with Auditors: Work closely with the external auditors to ensure that any potential delays in the audit process are identified early and mitigated to meet the submission deadline.
Show full finding ▾Hide full finding ▴Criteria: According to 2 CFR § 200.512 (Report Submission) of the Uniform Guidance, non-federal entities that expend $750,000 or more in federal awards during the fiscal year are required to submit the audit report, including the financial statements and the Schedule of Expenditures of Federal Awards (SEFA), to the FAC no later than nine months after the end of the fiscal year or 30 days after receipt of the auditor’s report, whichever is earlier. Condition: The Institution did not submit its Single Audit report for the fiscal year ended June 30, 2022 to the Federal Audit Clearinghouse (FAC) within the required timeframe. The report was due within nine months after the end of the fiscal year, as per federal regulations. As of the report date, has not been submitted. Best practices, as highlighted by the Government Finance Officers Association (GFOA) and the Council on Financial Assistance Reform (COFAR), recommend that entities establish internal processes to ensure compliance with federal reporting deadlines, such as implementing a calendar of key reporting dates and assigning specific responsibilities to team members to monitor and manage audit reporting submissions. Effect: Failure to submit the Single Audit report timely could result in non-compliance with federal regulations, jeopardizing the Institution’s eligibility to receive future federal awards or funding. Additionally, late submissions may lead to increased scrutiny from oversight agencies and affect the entity’s reputation with grantors and other stakeholders. Cause: The late submission appears to have resulted from a combination of factors, including: • Delays in completing the financial close and audit process due to significant deficiencies in the financial closing and reporting disclosed in finding 2022-II-1 and resource constraints, turnover in accounting personnel, or unexpected audit complexities. • A lack of internal processes and controls to monitor and ensure timely submission of the Single Audit report to the FAC. Recommendations: We recommend that the Institution implement the following actions to ensure timely submission of the Single Audit report in the future: 1. Establish a Compliance Calendar: Create a detailed compliance calendar that includes key deadlines for the Single Audit submission, as well as internal milestones leading up to the submission date. This calendar should be regularly reviewed and updated. 2. Assign Responsibility: Designate a specific individual or team within the organization to monitor the audit process and ensure that the submission to the FAC occurs within the required timeframe. 3. Implement Review Procedures: Institute formal review and sign-off procedures for audit deliverables, with specific checkpoints to ensure that the audit report is finalized well before the submission deadline. 4. Communicate with Auditors: Work closely with the external auditors to ensure that any potential delays in the audit process are identified early and mitigated to meet the submission deadline.
Condition: The Institution did not submit its Single Audit report for the fiscal year ended June 30, 2022 to the Federal Audit Clearinghouse (FAC) within the required timeframe. The report was due within nine months after the end of the fiscal year, as per federal regulations. As of the report date, has not been submitted. Best practices, as highlighted by the Government Finance Officers Association (GFOA) and the Council on Financial Assistance Reform (COFAR), recommend that entities establish internal processes to ensure compliance with federal reporting deadlines, such as implementing a calendar of key reporting dates and assigning specific responsibilities to team members to monitor and manage audit reporting submissions. Person responsible for Correction Action: Cristian Duarte, President & CEO Planned Corrective Action: We will submit the Single Audit report to the Federal Audit Clearinghouse (FAC) within the required timeframe. Anticipated Completion Date: On or before nine months after next fiscal year ended June 30, 2024.
FAC accepted this audit on July 11, 2022 — management decision was due January 11, 2023.
During the audited period the Institution fails to identify and separately record the federal funds capital expenditures for each federal program. We note that the Institution does not maintain an adequate property ledger of property and equipment acquired with federal funds. During the audited period, the Institution fails to reconcile physical inventory of federal property, required at least once every two years, with the property records. Nevertheless, during the course of fiscal year 2021-2022, the client reviewed and valued the physical inventory taken, and adjusted it to write off the non-existent equipment with the intention of reconciling it with the property records. Context: As part of our audit procedures related to the expenditures, we interviewed the Institution's accountant and obtained an understanding of the procedures and policies to record the capital expenditures of the federal programs. Regardless, the Institution's maintains a property and equipment ledger that includes property and equipment acquired with federal funds separately from general funds, the Institution has not been effective in preventing commingle funds from the capital expenditures of federal grants received. Regardless, the Institution keeps identified in the property and equipment ledger that equipment and property that belongs to the federal programs through a suffix in the chart of accounts, the representation of the Institution is that not everything identified with that account was property and equipment purchased with federal funds. Effect: The Institution lacks an appropriate record, that allows it to apply appropriate mechanisms to safeguard and custody of property and equipment acquired with federal funds, and the eventual disposition thereof. Cause: The Institution lacks proper written procedures and policies for identifying and recording federal expenditures for property and equipment separately from acquired from general funds, which does not allow the application of federal regulation related to financial management of property and equipment. Recommendations: ? Establish written policies and procedures to ensure that a physical inventory of federal property is taken at least once every two years and the results are reconciled with the property records. ? We recommend that the Institution take a physical inventory as soon as possible, and that the results be reconciled with the property records. Questioned cost: None Repeat finding: Yes. Finding 2018-002 Sampling was statistically valid: N/A For views of responsible officials and planned corrective actions, see pages 30 and 31.
Show full finding ▾Hide full finding ▴II. Findings and Questioned Costs for Federal Awards: Finding number: 2021-001 Program information: 14.231 Emergency Solution Grant Program Regulation/Requirement: Financial management ? Equipment Type: Significant deficiency - Internal Control Criteria: PART 200-UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS in Subpart D-Post Federal Award Requirements section STANDARDS FOR FINANCIAL AND PROGRAM MANAGEMENT ? 200.313 ? Equipment. Management requirements. Procedures for managing equipment (including replacement equipment), if acquired in whole or in part under a Federal award, until disposition takes place, 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 funding for the property (including the FAIN), who holds the title, the acquisition date, and the cost of the property , percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years. Section ? 200.303 Internal controls require the non-Federal entity must 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. Condition: During the audited period the Institution fails to identify and separately record the federal funds capital expenditures for each federal program. We note that the Institution does not maintain an adequate property ledger of property and equipment acquired with federal funds. During the audited period, the Institution fails to reconcile physical inventory of federal property, required at least once every two years, with the property records. Nevertheless, during the course of fiscal year 2021-2022, the client reviewed and valued the physical inventory taken, and adjusted it to write off the non-existent equipment with the intention of reconciling it with the property records. Context: As part of our audit procedures related to the expenditures, we interviewed the Institution's accountant and obtained an understanding of the procedures and policies to record the capital expenditures of the federal programs. Regardless, the Institution's maintains a property and equipment ledger that includes property and equipment acquired with federal funds separately from general funds, the Institution has not been effective in preventing commingle funds from the capital expenditures of federal grants received. Regardless, the Institution keeps identified in the property and equipment ledger that equipment and property that belongs to the federal programs through a suffix in the chart of accounts, the representation of the Institution is that not everything identified with that account was property and equipment purchased with federal funds. Effect: The Institution lacks an appropriate record, that allows it to apply appropriate mechanisms to safeguard and custody of property and equipment acquired with federal funds, and the eventual disposition thereof. Cause: The Institution lacks proper written procedures and policies for identifying and recording federal expenditures for property and equipment separately from acquired from general funds, which does not allow the application of federal regulation related to financial management of property and equipment. Recommendations: ? Establish written policies and procedures to ensure that a physical inventory of federal property is taken at least once every two years and the results are reconciled with the property records. ? We recommend that the Institution take a physical inventory as soon as possible, and that the results be reconciled with the property records. Questioned cost: None Repeat finding: Yes. Finding 2018-002 Sampling was statistically valid: N/A For views of responsible officials and planned corrective actions, see pages 30 and 31.
U.S. Department of Housing and Urban Development Office of Federal Assistance Management GRANT NO. GRANT NO. E17DC720001/2020-000-109 GRANT NO. 2019-000-107A GRANT NO. 2019-000-107A/ Surplus GRANT NO. 2020-000-108-A CORRECTIVE ACTION PLAN FISCAL YEAR ENDED JUNE 30, 2021 As required, we hereby submit our response and comments to external auditor findings and recommendations: FINDINGS AND QUESTIONED COST FOR FEDERAL AWARD Reference Number: 2021-001 Agency: U.S. Department of Housing and Urban Development Pass-through Entity: Department of the Family- Government of Puerto Rico Program: Emergency Solution Grant Program CFDA Number: 14.231 Regulation/Requirement: Equipment and Real Property Type: Significant deficiency ? internal controls over compliance Questioned Costs: -0- Condition: During the audited period the Institution fails to identify and separately record the federal funds capital expenditures for each federal program. We note that the Institution does not maintain an adequate property ledger of property and equipment acquired with federal funds. During the audited period, the Institution fails to reconcile physical inventory taken of federal property, required at least once every two years, with the property records. Action: We agree with the findings. As our corrective action plan to be implemented, we during the course of the fiscal year 2021-2022, we will review and put value to the physical inventory taken, and adjust it to write off the non-existent equipment and reconcile it with property records. Similarly, we will require our staff to increase efforts to ensure that established internal controls that required that every two years a physical inventory of property and equipment purchased with federal funds be taken and reconciled with the property records of the Institution are rigorously put into operation. Time frame: March 31, 2022
2020-001
FAC accepted this audit on August 31, 2021 — management decision was due March 3, 2022.
During the audited period the Institution fails to identify and separately record the federal funds capital expenditures for each federal program. We note that the Institution does not maintain an adequate property ledger of property and equipment acquired with federal funds. During the audited period, the Institution fails to take a physical inventory of federal property at least once every two years and the results reconciled with the property records. As of the date of submission of the Single Audit report, the client is in the process of finalizing the required physical inventory of federal property acquired with federal funds. Context: As part of our audit procedures related to the expenditures, we interviewed the Institution's accountant and obtained an understanding of the procedures and policies to record the capital expenditures of the federal programs. Regardless, the Institution's maintains a property and equipment ledger that includes property and equipment acquired with federal funds separately from general funds, the Institution has not been effective in preventing commingle funds from the capital expenditures of federal grants received. Regardless, the Institution keeps identified in the property and equipment ledger that equipment and property that belongs to the federal programs through a suffix in the chart of accounts, the representation of the Institution is that not everything identified with that account was property and equipment purchased with federal funds. Effect: The Institution lacks an appropriate record, that allows it to apply appropriate mechanisms to safeguard and custody of property and equipment acquired with federal funds, and the eventual disposition thereof. Cause: The Institution lacks proper written procedures and policies for identifying and recording federal expenditures for property and equipment separately from acquired from general funds, which does not allow the application of federal regulation related to financial management of property and equipment. Recommendations: ? Establish written policies and procedures to ensure that a physical inventory of federal property is taken at least once every two years and the results are reconciled with the property records. ? We recommend that the Institution take a physical inventory as soon as possible, and that the results be reconciled with the property records. Questioned cost: None Repeat finding: Yes. Finding 2018-002 Sampling was statistically valid: N/A For views of responsible officials and planned corrective actions, see page 32 and 33.
Show full finding ▾Hide full finding ▴II. Findings and Questioned Costs for Federal Awards: Finding number: 2020-001 Program information: 14.231 Emergency Solution Grant Program Regulation/Requirement: Financial management ? Equipment Type: Significant deficiency - Internal Control Criteria: PART 200-UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS in Subpart D-Post Federal Award Requirements section STANDARDS FOR FINANCIAL AND PROGRAM MANAGEMENT ? 200.313 ? Equipment. Management requirements. Procedures for managing equipment (including replacement equipment), if acquired in whole or in part under a Federal award, until disposition takes place, 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 funding for the property (including the FAIN), who holds the title, the acquisition date, and the cost of the property , percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years. Section ? 200.303 Internal controls requires the non-Federal entity must 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. Condition: During the audited period the Institution fails to identify and separately record the federal funds capital expenditures for each federal program. We note that the Institution does not maintain an adequate property ledger of property and equipment acquired with federal funds. During the audited period, the Institution fails to take a physical inventory of federal property at least once every two years and the results reconciled with the property records. As of the date of submission of the Single Audit report, the client is in the process of finalizing the required physical inventory of federal property acquired with federal funds. Context: As part of our audit procedures related to the expenditures, we interviewed the Institution's accountant and obtained an understanding of the procedures and policies to record the capital expenditures of the federal programs. Regardless, the Institution's maintains a property and equipment ledger that includes property and equipment acquired with federal funds separately from general funds, the Institution has not been effective in preventing commingle funds from the capital expenditures of federal grants received. Regardless, the Institution keeps identified in the property and equipment ledger that equipment and property that belongs to the federal programs through a suffix in the chart of accounts, the representation of the Institution is that not everything identified with that account was property and equipment purchased with federal funds. Effect: The Institution lacks an appropriate record, that allows it to apply appropriate mechanisms to safeguard and custody of property and equipment acquired with federal funds, and the eventual disposition thereof. Cause: The Institution lacks proper written procedures and policies for identifying and recording federal expenditures for property and equipment separately from acquired from general funds, which does not allow the application of federal regulation related to financial management of property and equipment. Recommendations: ? Establish written policies and procedures to ensure that a physical inventory of federal property is taken at least once every two years and the results are reconciled with the property records. ? We recommend that the Institution take a physical inventory as soon as possible, and that the results be reconciled with the property records. Questioned cost: None Repeat finding: Yes. Finding 2018-002 Sampling was statistically valid: N/A For views of responsible officials and planned corrective actions, see page 32 and 33.
March 24, 2021 U.S. Department of Housing and Urban Development Office of Federal Assistance Management GRANT NO. GRANT NO. E17DC720001/2020-000-109 GRANT NO. 2019-000-107A GRANT NO. 2019-000-107A/ Surplus GRANT NO. 2020-000-108-A CORRECTIVE ACTION PLAN FISCAL YEAR ENDED JUNE 30, 2020 As required, we hereby submit our response and comments to external auditor findings and recommendations: FINDINGS AND QUESTIONED COST FOR FEDERAL AWARD Reference Number: 2020-001 Agency: U.S. Department of Housing and Urban Development Pass-through Entity: Department of the Family- Government of Puerto Rico Program: Emergency Solution Grant Program CFDA Number: 14.231 Regulation/Requirement: Equipment and Real Property Type: Significant deficiency ? internal controls over compliance Questioned Costs: -0- Condition: During the audited period the Institution fails to identify and separately record the federal funds capital expenditures for each federal program. We note that the Institution does not maintain an adequate property ledger of property and equipment acquired with federal funds. During the audited period, the Institution fails to take a physical inventory of federal property at least once every two years and the results reconciled with the property records. Action: We agree with the findings. As our corrective action plan to be implemented we will, effective immediately, instruct the finance staff to carry out a physical inventory of federal property and reconciled it with the property records of the Institution, as established in the policies in our Accounting Manual. Similarly, we will require our staff to ensure that established internal controls that required that every two years a physical inventory of property and equipment purchased with federal funds be taken and reconciled with the property records of the Institution are rigorously put into operation. As of the date of submission of the Single Audit report, we are in the process of finalizing the required physical inventory of federal property acquired with federal funds. Time frame: July 31, 2021 Cordially yours, Juan de Dios Videau-Soler, Administrator Centro Deambulantes Cristo Pobre, Inc.
FAC accepted this audit on May 19, 2019 — management decision was due November 19, 2019.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
GSA_MIGRATION
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.
Track your findings and corrective action plans across audit cycles.
Start tracking findings →Monitor subrecipient audit findings and compliance status.
Start monitoring →© 2026 Single Audit Intelligence. All data is public domain.