FAC Explorer

Audit 307603

FY End
2022-06-30
Total Expended
$4.88M
Findings
8
Programs
12
Organization: Municipality of Lajas (PR)
Year: 2022 Accepted: 2024-05-30
Auditor: Aquino De Cordova LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
398995 2022-002 Material Weakness - P
398996 2022-002 Material Weakness - P
398997 2022-002 Material Weakness - P
398998 2022-002 Material Weakness - P
975437 2022-002 Material Weakness - P
975438 2022-002 Material Weakness - P
975439 2022-002 Material Weakness - P
975440 2022-002 Material Weakness - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.75M Yes 1
21.019 Coronavirus Relief Fund $1.35M Yes 1
93.575 Child Care and Development Block Grant $241,650 - 0
93.569 Community Services Block Grant $101,483 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $85,140 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $51,593 Yes 1
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $22,187 - 0
10.558 Child and Adult Care Food Program $16,375 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $15,675 - 0
93.053 Nutrition Services Incentive Program $13,007 - 0
20.507 Federal Transit_formula Grants $7,084 - 0
14.871 Section 8 Housing Choice Vouchers $1,242 - 0

Contacts

Name Title Type
LUCCNRKL6VD5 Ramona Pacheco Auditee
7878991450 Velvette Barnes Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Municipality under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Municipality, it is not intended to and does not present the financial position and changes in net position of the Municipality.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance. The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance.
Title: RECONCILIATION OF EXPENDITURES PRESENTED IN THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE EXPENDITURES PRESENTED IN THE BASIC FINANCIAL STATEMENT Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance. The expenditures of the schedule are included in the Municipality’s basic financial statements. The reconciliation of expenditures in the basic financial statements to the Schedule of Expenditures of Federal Awards is as follows:
Title: RECONCILIATION OF EXPENDITURES PRESENTED IN THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE EXPENDITURES PRESENTED IN THE BASIC FINANCIAL STATEMENT Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance. ExpendituresTotal federal expenditures per schedule4,883,110$ Federal expenditures per basic financial statements included within:General Fund1,536,185$ ARPA Fund1,746,314 Other Governmental Funds1,600,611 Total4,883,110
Title: COMMUNITY DISASTER LOANS (ASSISTANCE LISTING NUMBER 97.030) Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance. As reported in Note 15 to the financial statements, the Municipality had an outstanding federal loan balance as of June 30, 2022. FEMA awarded the Municipality a Community Disaster Loan (CDL) with a maximum limit amount of $5 million at 2.75%. The CDL program provide assistance to local governments to overcome a loss in revenues as a result of a natural disaster, and in order to provide funds to continue its governmental operational functions. Neither principal nor interest payments are required to be paid until the CDL maturity.
Title: COMMUNITY DISASTER LOANS (ASSISTANCE LISTING NUMBER 97.030) Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance. The terms of the CDL provide, as a condition, that the Municipality shall recover sufficient revenues to meet its operating budget after three full years next to the fiscal year in which the natural disaster occurred. In the case in which the Municipality does not recover sufficient revenues, the repayment of the whole or part of the CDL might be cancelled by the Federal Government. In June 2018 and June 2021, FEMA issued to the Municipality a promissory note of $3,090,052 and $2,613,301 respectively for financial assistance under the CDL.
Title: COMMUNITY DISASTER LOANS (ASSISTANCE LISTING NUMBER 97.030) Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance. DescriptionAmountOutstanding note balance, at beginning year3,090,052$ Notes advances received during fiscal year 2021-20222,613,301 Community disaster loan forgiveness(5,212,982) Total outstanding note balance, June 30, 2022490,371$ Current year loan expense1,536,185

Finding Details

Finding 2022-002
REQUIREMENT: ACCOUNTING RECORDS AND REPORTING SYSTEM; TYPE OF FINDING: SIGNIFICANT DEFICIENCY; CONDITION: The Single Audit Report for the fiscal year ended June 30, 2022 of the Municipality with due date of March 31, 2023 was submitted after the 12 months deadline. The Single Audit related to such a period was completed after 12 month deadline. CRITERIA: OMB Uniform Guidance subpart B 200(a) establishes that Non-Fedeal entities that expend $500,000 ($750,000 for fiscal year ending after December 25, 2015) or more in 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 sub part B. 220 establishes that except for the provision for biennial audit 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, section 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.; 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; RECOMMENDATION: We recommend management to continue strengthening the internal controls over the recordkeeping of the accounting transactions in the system. Also, technical training must be provided to the accounting staff to continue improving the recording of the financial transaction in the accounting system; PRIOR YEAR FINDING: This finding is a prior year finding indentified as 2021-001; VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: TThe Municipality will take all necessary administrative measures to promptly address and correct the situation. I will instruct the Finance Department to submit all required financial information promptly to our financial consultant and external auditors to meet the deadline for submitting the Single Audit Report for the year 2024.; RESPONSIBLE OFFICIALS: Ramona Pacheco Machado - Finance Director.
Finding 2022-002
REQUIREMENT: ACCOUNTING RECORDS AND REPORTING SYSTEM; TYPE OF FINDING: SIGNIFICANT DEFICIENCY; CONDITION: The Single Audit Report for the fiscal year ended June 30, 2022 of the Municipality with due date of March 31, 2023 was submitted after the 12 months deadline. The Single Audit related to such a period was completed after 12 month deadline. CRITERIA: OMB Uniform Guidance subpart B 200(a) establishes that Non-Fedeal entities that expend $500,000 ($750,000 for fiscal year ending after December 25, 2015) or more in 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 sub part B. 220 establishes that except for the provision for biennial audit 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, section 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.; 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; RECOMMENDATION: We recommend management to continue strengthening the internal controls over the recordkeeping of the accounting transactions in the system. Also, technical training must be provided to the accounting staff to continue improving the recording of the financial transaction in the accounting system; PRIOR YEAR FINDING: This finding is a prior year finding indentified as 2021-001; VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: TThe Municipality will take all necessary administrative measures to promptly address and correct the situation. I will instruct the Finance Department to submit all required financial information promptly to our financial consultant and external auditors to meet the deadline for submitting the Single Audit Report for the year 2024.; RESPONSIBLE OFFICIALS: Ramona Pacheco Machado - Finance Director.
Finding 2022-002
REQUIREMENT: ACCOUNTING RECORDS AND REPORTING SYSTEM; TYPE OF FINDING: SIGNIFICANT DEFICIENCY; CONDITION: The Single Audit Report for the fiscal year ended June 30, 2022 of the Municipality with due date of March 31, 2023 was submitted after the 12 months deadline. The Single Audit related to such a period was completed after 12 month deadline. CRITERIA: OMB Uniform Guidance subpart B 200(a) establishes that Non-Fedeal entities that expend $500,000 ($750,000 for fiscal year ending after December 25, 2015) or more in 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 sub part B. 220 establishes that except for the provision for biennial audit 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, section 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.; 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; RECOMMENDATION: We recommend management to continue strengthening the internal controls over the recordkeeping of the accounting transactions in the system. Also, technical training must be provided to the accounting staff to continue improving the recording of the financial transaction in the accounting system; PRIOR YEAR FINDING: This finding is a prior year finding indentified as 2021-001; VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: TThe Municipality will take all necessary administrative measures to promptly address and correct the situation. I will instruct the Finance Department to submit all required financial information promptly to our financial consultant and external auditors to meet the deadline for submitting the Single Audit Report for the year 2024.; RESPONSIBLE OFFICIALS: Ramona Pacheco Machado - Finance Director.
Finding 2022-002
REQUIREMENT: ACCOUNTING RECORDS AND REPORTING SYSTEM; TYPE OF FINDING: SIGNIFICANT DEFICIENCY; CONDITION: The Single Audit Report for the fiscal year ended June 30, 2022 of the Municipality with due date of March 31, 2023 was submitted after the 12 months deadline. The Single Audit related to such a period was completed after 12 month deadline. CRITERIA: OMB Uniform Guidance subpart B 200(a) establishes that Non-Fedeal entities that expend $500,000 ($750,000 for fiscal year ending after December 25, 2015) or more in 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 sub part B. 220 establishes that except for the provision for biennial audit 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, section 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.; 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; RECOMMENDATION: We recommend management to continue strengthening the internal controls over the recordkeeping of the accounting transactions in the system. Also, technical training must be provided to the accounting staff to continue improving the recording of the financial transaction in the accounting system; PRIOR YEAR FINDING: This finding is a prior year finding indentified as 2021-001; VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: TThe Municipality will take all necessary administrative measures to promptly address and correct the situation. I will instruct the Finance Department to submit all required financial information promptly to our financial consultant and external auditors to meet the deadline for submitting the Single Audit Report for the year 2024.; RESPONSIBLE OFFICIALS: Ramona Pacheco Machado - Finance Director.
Finding 2022-002
REQUIREMENT: ACCOUNTING RECORDS AND REPORTING SYSTEM; TYPE OF FINDING: SIGNIFICANT DEFICIENCY; CONDITION: The Single Audit Report for the fiscal year ended June 30, 2022 of the Municipality with due date of March 31, 2023 was submitted after the 12 months deadline. The Single Audit related to such a period was completed after 12 month deadline. CRITERIA: OMB Uniform Guidance subpart B 200(a) establishes that Non-Fedeal entities that expend $500,000 ($750,000 for fiscal year ending after December 25, 2015) or more in 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 sub part B. 220 establishes that except for the provision for biennial audit 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, section 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.; 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; RECOMMENDATION: We recommend management to continue strengthening the internal controls over the recordkeeping of the accounting transactions in the system. Also, technical training must be provided to the accounting staff to continue improving the recording of the financial transaction in the accounting system; PRIOR YEAR FINDING: This finding is a prior year finding indentified as 2021-001; VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: TThe Municipality will take all necessary administrative measures to promptly address and correct the situation. I will instruct the Finance Department to submit all required financial information promptly to our financial consultant and external auditors to meet the deadline for submitting the Single Audit Report for the year 2024.; RESPONSIBLE OFFICIALS: Ramona Pacheco Machado - Finance Director.
Finding 2022-002
REQUIREMENT: ACCOUNTING RECORDS AND REPORTING SYSTEM; TYPE OF FINDING: SIGNIFICANT DEFICIENCY; CONDITION: The Single Audit Report for the fiscal year ended June 30, 2022 of the Municipality with due date of March 31, 2023 was submitted after the 12 months deadline. The Single Audit related to such a period was completed after 12 month deadline. CRITERIA: OMB Uniform Guidance subpart B 200(a) establishes that Non-Fedeal entities that expend $500,000 ($750,000 for fiscal year ending after December 25, 2015) or more in 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 sub part B. 220 establishes that except for the provision for biennial audit 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, section 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.; 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; RECOMMENDATION: We recommend management to continue strengthening the internal controls over the recordkeeping of the accounting transactions in the system. Also, technical training must be provided to the accounting staff to continue improving the recording of the financial transaction in the accounting system; PRIOR YEAR FINDING: This finding is a prior year finding indentified as 2021-001; VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: TThe Municipality will take all necessary administrative measures to promptly address and correct the situation. I will instruct the Finance Department to submit all required financial information promptly to our financial consultant and external auditors to meet the deadline for submitting the Single Audit Report for the year 2024.; RESPONSIBLE OFFICIALS: Ramona Pacheco Machado - Finance Director.
Finding 2022-002
REQUIREMENT: ACCOUNTING RECORDS AND REPORTING SYSTEM; TYPE OF FINDING: SIGNIFICANT DEFICIENCY; CONDITION: The Single Audit Report for the fiscal year ended June 30, 2022 of the Municipality with due date of March 31, 2023 was submitted after the 12 months deadline. The Single Audit related to such a period was completed after 12 month deadline. CRITERIA: OMB Uniform Guidance subpart B 200(a) establishes that Non-Fedeal entities that expend $500,000 ($750,000 for fiscal year ending after December 25, 2015) or more in 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 sub part B. 220 establishes that except for the provision for biennial audit 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, section 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.; 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; RECOMMENDATION: We recommend management to continue strengthening the internal controls over the recordkeeping of the accounting transactions in the system. Also, technical training must be provided to the accounting staff to continue improving the recording of the financial transaction in the accounting system; PRIOR YEAR FINDING: This finding is a prior year finding indentified as 2021-001; VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: TThe Municipality will take all necessary administrative measures to promptly address and correct the situation. I will instruct the Finance Department to submit all required financial information promptly to our financial consultant and external auditors to meet the deadline for submitting the Single Audit Report for the year 2024.; RESPONSIBLE OFFICIALS: Ramona Pacheco Machado - Finance Director.
Finding 2022-002
REQUIREMENT: ACCOUNTING RECORDS AND REPORTING SYSTEM; TYPE OF FINDING: SIGNIFICANT DEFICIENCY; CONDITION: The Single Audit Report for the fiscal year ended June 30, 2022 of the Municipality with due date of March 31, 2023 was submitted after the 12 months deadline. The Single Audit related to such a period was completed after 12 month deadline. CRITERIA: OMB Uniform Guidance subpart B 200(a) establishes that Non-Fedeal entities that expend $500,000 ($750,000 for fiscal year ending after December 25, 2015) or more in 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 sub part B. 220 establishes that except for the provision for biennial audit 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, section 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.; 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; RECOMMENDATION: We recommend management to continue strengthening the internal controls over the recordkeeping of the accounting transactions in the system. Also, technical training must be provided to the accounting staff to continue improving the recording of the financial transaction in the accounting system; PRIOR YEAR FINDING: This finding is a prior year finding indentified as 2021-001; VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: TThe Municipality will take all necessary administrative measures to promptly address and correct the situation. I will instruct the Finance Department to submit all required financial information promptly to our financial consultant and external auditors to meet the deadline for submitting the Single Audit Report for the year 2024.; RESPONSIBLE OFFICIALS: Ramona Pacheco Machado - Finance Director.