Objective

To report internal control weaknesses, noncompliance issues, and unallowable costs to the Social Security Administration (SSA) for resolution.

Background

The single audits were conducted by the audit firm of Torres Llompart, Sanchez-Ruiz L.L.P.  SSA is responsible for resolving single audit findings related to its Disability Insurance and Supplemental Security Income programs.  The Puerto Rico Department of the Family (PRDF) is the Puerto Rico Disability Determination Services parent agency.

To view the full reports, visit
http://www.ssa.gov/oig/ADOBEPDF/A-77-09-00011.pdf

http://www.ssa.gov/oig/ADOBEPDF/A-77-09-00012.pdf

Our Findings

The Single Audits of the Commonwealth of Puerto Rico for the Fiscal Years ended June 30, 2006 and June 30, 2007 reported PRDF (1) did not submit the single audit report to the Federal Audit Clearinghouse timely; (2) had deficient accounting policies, procedures, and financial reporting practices; (3) had an inadequate filing system; (4) had multiple documents missing from personnel files, and payroll transactions were not being properly monitored; (5) did not have an effective property and equipment system; and (6) charged expenditures for SSA obligations that were incurred after the period of availability. Further, the Single Audit for the Fiscal Year ended June 30, 2007 reported PRDF did not have adequate procedures and controls over the timing of cash draws.

Our Recommendation

We made several recommendations to address the internal control weaknesses identified in these Single Audits of the Commonwealth of Puerto Rico including that SSA determine whether the obligations recorded after the period of availability resulted in unallowable charges and, if so, request a refund of the unallowable costs.