Audit 319580

FY End
2022-06-30
Total Expended
$6.18M
Findings
12
Programs
8
Organization: Municipality of Santa Isabel (PR)
Year: 2022 Accepted: 2024-09-13

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
496855 2022-008 Significant Deficiency Yes P
496856 2022-008 Significant Deficiency Yes P
496857 2022-008 Significant Deficiency Yes P
496858 2022-008 Significant Deficiency Yes P
496859 2022-008 Significant Deficiency Yes P
496860 2022-008 Significant Deficiency Yes P
1073297 2022-008 Significant Deficiency Yes P
1073298 2022-008 Significant Deficiency Yes P
1073299 2022-008 Significant Deficiency Yes P
1073300 2022-008 Significant Deficiency Yes P
1073301 2022-008 Significant Deficiency Yes P
1073302 2022-008 Significant Deficiency Yes P

Contacts

Name Title Type
WDQQLU5TSNA3 Johnny Millan Burgos Auditee
7875582014 Angel Alfredo Lopez Vega 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, except for Section 8 Housing Choice Voucher Program (HCV). Expenditures are recognized when the related liability is incurred following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for HCV Program are reported on a statutory basis as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy for the PHA’s fiscal period. Expenditures for Public assistance grants (FEMA) are recognized in the period when: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. State or local government redistributions of federal awards to the Municipality, known as “pass–through awards”, should be treated by the Municipality as though they were received directly from the federal government. The Uniform Guidance requires the schedule to include the name of the pass–through entity and the identifying number assigned by the pass–through entity for the federal awards received as a sub recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. The Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five-digit number assigned in the awarding document for all federal assistance award mechanisms, including federal grants and cooperative agreements. Assistance listings are detailed public descriptions of federal programs that provide grants, loans, scholarships, insurance, and other types of assistance awards. The Sam.gov assistance listing is the publicly available online database showing all available Federally-funded programs. De Minimis Rate Used: N Rate Explanation: The Municipality elected not use the 10% de minimis cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2022. 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, except for Section 8 Housing Choice Voucher Program (HCV). Expenditures are recognized when the related liability is incurred following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for HCV Program are reported on a statutory basis as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy for the PHA’s fiscal period. Expenditures for Public assistance grants (FEMA) are recognized in the period when: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. State or local government redistributions of federal awards to the Municipality, known as “pass–through awards”, should be treated by the Municipality as though they were received directly from the federal government. The Uniform Guidance requires the schedule to include the name of the pass–through entity and the identifying number assigned by the pass–through entity for the federal awards received as a sub recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. The Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five-digit number assigned in the awarding document for all federal assistance award mechanisms, including federal grants and cooperative agreements. Assistance listings are detailed public descriptions of federal programs that provide grants, loans, scholarships, insurance, and other types of assistance awards. The Sam.gov assistance listing is the publicly available online database showing all available Federally-funded programs. De Minimis Rate Used: N Rate Explanation: The Municipality elected not use the 10% de minimis cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2022. Expenditures reported on the Schedule are reported on the modified-accrual basis of accounting, except for Section 8 Housing Choice Voucher Program (HCV). Expenditures are recognized when the related liability is incurred following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for HCV Program are reported on a statutory basis as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy for the PHA’s fiscal period. Expenditures for Public assistance grants (FEMA) are recognized in the period when: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. State or local government redistributions of federal awards to the Municipality, known as “pass–through awards”, should be treated by the Municipality as though they were received directly from the federal government. The Uniform Guidance requires the schedule to include the name of the pass–through entity and the identifying number assigned by the pass–through entity for the federal awards received as a sub recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. The Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five-digit number assigned in the awarding document for all federal assistance award mechanisms, including federal grants and cooperative agreements. Assistance listings are detailed public descriptions of federal programs that provide grants, loans, scholarships, insurance, and other types of assistance awards. The Sam.gov assistance listing is the publicly available online database showing all available Federally-funded programs.
Title: INDIRECT COSTS Accounting Policies: Expenditures reported on the Schedule are reported on the modified-accrual basis of accounting, except for Section 8 Housing Choice Voucher Program (HCV). Expenditures are recognized when the related liability is incurred following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for HCV Program are reported on a statutory basis as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy for the PHA’s fiscal period. Expenditures for Public assistance grants (FEMA) are recognized in the period when: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. State or local government redistributions of federal awards to the Municipality, known as “pass–through awards”, should be treated by the Municipality as though they were received directly from the federal government. The Uniform Guidance requires the schedule to include the name of the pass–through entity and the identifying number assigned by the pass–through entity for the federal awards received as a sub recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. The Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five-digit number assigned in the awarding document for all federal assistance award mechanisms, including federal grants and cooperative agreements. Assistance listings are detailed public descriptions of federal programs that provide grants, loans, scholarships, insurance, and other types of assistance awards. The Sam.gov assistance listing is the publicly available online database showing all available Federally-funded programs. De Minimis Rate Used: N Rate Explanation: The Municipality elected not use the 10% de minimis cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2022. The Municipality elected not use the 10% de minimis cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2022.
Title: RELATIONSHIP TO FEDERAL FINANCIAL REPORTS Accounting Policies: Expenditures reported on the Schedule are reported on the modified-accrual basis of accounting, except for Section 8 Housing Choice Voucher Program (HCV). Expenditures are recognized when the related liability is incurred following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for HCV Program are reported on a statutory basis as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy for the PHA’s fiscal period. Expenditures for Public assistance grants (FEMA) are recognized in the period when: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. State or local government redistributions of federal awards to the Municipality, known as “pass–through awards”, should be treated by the Municipality as though they were received directly from the federal government. The Uniform Guidance requires the schedule to include the name of the pass–through entity and the identifying number assigned by the pass–through entity for the federal awards received as a sub recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. The Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five-digit number assigned in the awarding document for all federal assistance award mechanisms, including federal grants and cooperative agreements. Assistance listings are detailed public descriptions of federal programs that provide grants, loans, scholarships, insurance, and other types of assistance awards. The Sam.gov assistance listing is the publicly available online database showing all available Federally-funded programs. De Minimis Rate Used: N Rate Explanation: The Municipality elected not use the 10% de minimis cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2022. Amounts reported in the accompanying Schedule are included in the General Fund, FEMA Fund, ARPA Fund and in the Other Non-major Funds in the Municipality’s fund financial statements. The reconciliation between the expenditures in the fund financial statements and expenditures in the Schedule of Expenditures of Federal Awards is as follows:
Title: COMMUNITY DISASTER LOAN (ALN 97.030) Accounting Policies: Expenditures reported on the Schedule are reported on the modified-accrual basis of accounting, except for Section 8 Housing Choice Voucher Program (HCV). Expenditures are recognized when the related liability is incurred following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for HCV Program are reported on a statutory basis as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy for the PHA’s fiscal period. Expenditures for Public assistance grants (FEMA) are recognized in the period when: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. State or local government redistributions of federal awards to the Municipality, known as “pass–through awards”, should be treated by the Municipality as though they were received directly from the federal government. The Uniform Guidance requires the schedule to include the name of the pass–through entity and the identifying number assigned by the pass–through entity for the federal awards received as a sub recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. The Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five-digit number assigned in the awarding document for all federal assistance award mechanisms, including federal grants and cooperative agreements. Assistance listings are detailed public descriptions of federal programs that provide grants, loans, scholarships, insurance, and other types of assistance awards. The Sam.gov assistance listing is the publicly available online database showing all available Federally-funded programs. De Minimis Rate Used: N Rate Explanation: The Municipality elected not use the 10% de minimis cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2022. The Community Disaster Loan-Earthquake was awarded by FEMA with a total issue of $3,272,630 at an interest rate of 0.250%. This note provides operational funding for local governments to continue to operate after a substantial revenue loss caused by a disaster. The CDL payments due to this loan are under evaluation by the Federal Government. Outstanding principal balance on June 30, 2021: $ 3,272,630 Last year expenditures: 1,500,000 Current year expenditures: 882,000 Available to spend: 890,630 Outstanding principal balance at June 30, 2022: $ - On September 30, 2021, the United States Congress passed the Extending Government Funding and Delivering Emergency Assistance Act (P.L. 117-43). According to P.L. 117-43, Section 1601, (a) “Repayments of the remaining balances of all loans, as of September 30, 2021, by the Federal Emergency Management Agency under Section 417 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5184) are hereby cancelled”. Accordingly, the outstanding balance of principal and interest of the referenced loan as of September 30, 2021, was cancelled.
Title: LATENESS OF SINGLE AUDIT REPORTING PACKAGE Accounting Policies: Expenditures reported on the Schedule are reported on the modified-accrual basis of accounting, except for Section 8 Housing Choice Voucher Program (HCV). Expenditures are recognized when the related liability is incurred following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for HCV Program are reported on a statutory basis as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy for the PHA’s fiscal period. Expenditures for Public assistance grants (FEMA) are recognized in the period when: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. State or local government redistributions of federal awards to the Municipality, known as “pass–through awards”, should be treated by the Municipality as though they were received directly from the federal government. The Uniform Guidance requires the schedule to include the name of the pass–through entity and the identifying number assigned by the pass–through entity for the federal awards received as a sub recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. The Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five-digit number assigned in the awarding document for all federal assistance award mechanisms, including federal grants and cooperative agreements. Assistance listings are detailed public descriptions of federal programs that provide grants, loans, scholarships, insurance, and other types of assistance awards. The Sam.gov assistance listing is the publicly available online database showing all available Federally-funded programs. De Minimis Rate Used: N Rate Explanation: The Municipality elected not use the 10% de minimis cost rate and did not charge indirect cost to federal grants during the year ended June 30, 2022. The Single Audit reporting package, as defined and required in 2 CFR 200 for the fiscal year ended June 30, 2022, could not be submitted in a timely manner. From 2017 to the present, Puerto Rico has suffered four consecutive emergencies caused by nature and health situations: Hurricane Maria, Earthquakes, COVID-19, and Hurricane Fiona. The Municipality of Santa Isabel has carried out emergency work and taken into consideration the waivers issued by the OMB, resulting in delays of the administrative work for the following years.

Finding Details

Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) This finding is similar to prior year finding(s) 2021-009, 2020-007 and 2019-007. Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023, in accordance with Memorandum M-21-20 and the declared major disaster area under the Stafford Act. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause of Condition Due to the delay in the preparation of the financial statements, the Municipality did not comply with the requirements established in the Uniform Guidance. Effect of Condition The Municipality could be sanctioned by the Federal government for the noncompliance of this requirement. Recommendation We recommend management to continue strengthening the internal controls over the accounting records to complete in a timely manner the process of preparation of the financial statements of the Municipality. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instruction to the Finance Department staff to submit, in a timely manner, all the required financial information, to our external auditors, to comply with the datelines for the submission of the Single Audit Report for the fiscal year 2023-2024, which is March 31, 2025. Responsible Official: Mr. Johnny Millán Burgos, Finance and Budget Director Implementation Date: March 31, 2025
Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) This finding is similar to prior year finding(s) 2021-009, 2020-007 and 2019-007. Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023, in accordance with Memorandum M-21-20 and the declared major disaster area under the Stafford Act. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause of Condition Due to the delay in the preparation of the financial statements, the Municipality did not comply with the requirements established in the Uniform Guidance. Effect of Condition The Municipality could be sanctioned by the Federal government for the noncompliance of this requirement. Recommendation We recommend management to continue strengthening the internal controls over the accounting records to complete in a timely manner the process of preparation of the financial statements of the Municipality. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instruction to the Finance Department staff to submit, in a timely manner, all the required financial information, to our external auditors, to comply with the datelines for the submission of the Single Audit Report for the fiscal year 2023-2024, which is March 31, 2025. Responsible Official: Mr. Johnny Millán Burgos, Finance and Budget Director Implementation Date: March 31, 2025
Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) This finding is similar to prior year finding(s) 2021-009, 2020-007 and 2019-007. Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023, in accordance with Memorandum M-21-20 and the declared major disaster area under the Stafford Act. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause of Condition Due to the delay in the preparation of the financial statements, the Municipality did not comply with the requirements established in the Uniform Guidance. Effect of Condition The Municipality could be sanctioned by the Federal government for the noncompliance of this requirement. Recommendation We recommend management to continue strengthening the internal controls over the accounting records to complete in a timely manner the process of preparation of the financial statements of the Municipality. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instruction to the Finance Department staff to submit, in a timely manner, all the required financial information, to our external auditors, to comply with the datelines for the submission of the Single Audit Report for the fiscal year 2023-2024, which is March 31, 2025. Responsible Official: Mr. Johnny Millán Burgos, Finance and Budget Director Implementation Date: March 31, 2025
Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) This finding is similar to prior year finding(s) 2021-009, 2020-007 and 2019-007. Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023, in accordance with Memorandum M-21-20 and the declared major disaster area under the Stafford Act. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause of Condition Due to the delay in the preparation of the financial statements, the Municipality did not comply with the requirements established in the Uniform Guidance. Effect of Condition The Municipality could be sanctioned by the Federal government for the noncompliance of this requirement. Recommendation We recommend management to continue strengthening the internal controls over the accounting records to complete in a timely manner the process of preparation of the financial statements of the Municipality. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instruction to the Finance Department staff to submit, in a timely manner, all the required financial information, to our external auditors, to comply with the datelines for the submission of the Single Audit Report for the fiscal year 2023-2024, which is March 31, 2025. Responsible Official: Mr. Johnny Millán Burgos, Finance and Budget Director Implementation Date: March 31, 2025
Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) This finding is similar to prior year finding(s) 2021-009, 2020-007 and 2019-007. Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023, in accordance with Memorandum M-21-20 and the declared major disaster area under the Stafford Act. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause of Condition Due to the delay in the preparation of the financial statements, the Municipality did not comply with the requirements established in the Uniform Guidance. Effect of Condition The Municipality could be sanctioned by the Federal government for the noncompliance of this requirement. Recommendation We recommend management to continue strengthening the internal controls over the accounting records to complete in a timely manner the process of preparation of the financial statements of the Municipality. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instruction to the Finance Department staff to submit, in a timely manner, all the required financial information, to our external auditors, to comply with the datelines for the submission of the Single Audit Report for the fiscal year 2023-2024, which is March 31, 2025. Responsible Official: Mr. Johnny Millán Burgos, Finance and Budget Director Implementation Date: March 31, 2025
Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) This finding is similar to prior year finding(s) 2021-009, 2020-007 and 2019-007. Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023, in accordance with Memorandum M-21-20 and the declared major disaster area under the Stafford Act. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause of Condition Due to the delay in the preparation of the financial statements, the Municipality did not comply with the requirements established in the Uniform Guidance. Effect of Condition The Municipality could be sanctioned by the Federal government for the noncompliance of this requirement. Recommendation We recommend management to continue strengthening the internal controls over the accounting records to complete in a timely manner the process of preparation of the financial statements of the Municipality. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instruction to the Finance Department staff to submit, in a timely manner, all the required financial information, to our external auditors, to comply with the datelines for the submission of the Single Audit Report for the fiscal year 2023-2024, which is March 31, 2025. Responsible Official: Mr. Johnny Millán Burgos, Finance and Budget Director Implementation Date: March 31, 2025
Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) This finding is similar to prior year finding(s) 2021-009, 2020-007 and 2019-007. Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023, in accordance with Memorandum M-21-20 and the declared major disaster area under the Stafford Act. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause of Condition Due to the delay in the preparation of the financial statements, the Municipality did not comply with the requirements established in the Uniform Guidance. Effect of Condition The Municipality could be sanctioned by the Federal government for the noncompliance of this requirement. Recommendation We recommend management to continue strengthening the internal controls over the accounting records to complete in a timely manner the process of preparation of the financial statements of the Municipality. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instruction to the Finance Department staff to submit, in a timely manner, all the required financial information, to our external auditors, to comply with the datelines for the submission of the Single Audit Report for the fiscal year 2023-2024, which is March 31, 2025. Responsible Official: Mr. Johnny Millán Burgos, Finance and Budget Director Implementation Date: March 31, 2025
Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) This finding is similar to prior year finding(s) 2021-009, 2020-007 and 2019-007. Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023, in accordance with Memorandum M-21-20 and the declared major disaster area under the Stafford Act. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause of Condition Due to the delay in the preparation of the financial statements, the Municipality did not comply with the requirements established in the Uniform Guidance. Effect of Condition The Municipality could be sanctioned by the Federal government for the noncompliance of this requirement. Recommendation We recommend management to continue strengthening the internal controls over the accounting records to complete in a timely manner the process of preparation of the financial statements of the Municipality. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instruction to the Finance Department staff to submit, in a timely manner, all the required financial information, to our external auditors, to comply with the datelines for the submission of the Single Audit Report for the fiscal year 2023-2024, which is March 31, 2025. Responsible Official: Mr. Johnny Millán Burgos, Finance and Budget Director Implementation Date: March 31, 2025
Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) This finding is similar to prior year finding(s) 2021-009, 2020-007 and 2019-007. Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023, in accordance with Memorandum M-21-20 and the declared major disaster area under the Stafford Act. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause of Condition Due to the delay in the preparation of the financial statements, the Municipality did not comply with the requirements established in the Uniform Guidance. Effect of Condition The Municipality could be sanctioned by the Federal government for the noncompliance of this requirement. Recommendation We recommend management to continue strengthening the internal controls over the accounting records to complete in a timely manner the process of preparation of the financial statements of the Municipality. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instruction to the Finance Department staff to submit, in a timely manner, all the required financial information, to our external auditors, to comply with the datelines for the submission of the Single Audit Report for the fiscal year 2023-2024, which is March 31, 2025. Responsible Official: Mr. Johnny Millán Burgos, Finance and Budget Director Implementation Date: March 31, 2025
Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) This finding is similar to prior year finding(s) 2021-009, 2020-007 and 2019-007. Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023, in accordance with Memorandum M-21-20 and the declared major disaster area under the Stafford Act. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause of Condition Due to the delay in the preparation of the financial statements, the Municipality did not comply with the requirements established in the Uniform Guidance. Effect of Condition The Municipality could be sanctioned by the Federal government for the noncompliance of this requirement. Recommendation We recommend management to continue strengthening the internal controls over the accounting records to complete in a timely manner the process of preparation of the financial statements of the Municipality. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instruction to the Finance Department staff to submit, in a timely manner, all the required financial information, to our external auditors, to comply with the datelines for the submission of the Single Audit Report for the fiscal year 2023-2024, which is March 31, 2025. Responsible Official: Mr. Johnny Millán Burgos, Finance and Budget Director Implementation Date: March 31, 2025
Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) This finding is similar to prior year finding(s) 2021-009, 2020-007 and 2019-007. Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023, in accordance with Memorandum M-21-20 and the declared major disaster area under the Stafford Act. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause of Condition Due to the delay in the preparation of the financial statements, the Municipality did not comply with the requirements established in the Uniform Guidance. Effect of Condition The Municipality could be sanctioned by the Federal government for the noncompliance of this requirement. Recommendation We recommend management to continue strengthening the internal controls over the accounting records to complete in a timely manner the process of preparation of the financial statements of the Municipality. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instruction to the Finance Department staff to submit, in a timely manner, all the required financial information, to our external auditors, to comply with the datelines for the submission of the Single Audit Report for the fiscal year 2023-2024, which is March 31, 2025. Responsible Official: Mr. Johnny Millán Burgos, Finance and Budget Director Implementation Date: March 31, 2025
Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) This finding is similar to prior year finding(s) 2021-009, 2020-007 and 2019-007. Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023, in accordance with Memorandum M-21-20 and the declared major disaster area under the Stafford Act. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause of Condition Due to the delay in the preparation of the financial statements, the Municipality did not comply with the requirements established in the Uniform Guidance. Effect of Condition The Municipality could be sanctioned by the Federal government for the noncompliance of this requirement. Recommendation We recommend management to continue strengthening the internal controls over the accounting records to complete in a timely manner the process of preparation of the financial statements of the Municipality. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instruction to the Finance Department staff to submit, in a timely manner, all the required financial information, to our external auditors, to comply with the datelines for the submission of the Single Audit Report for the fiscal year 2023-2024, which is March 31, 2025. Responsible Official: Mr. Johnny Millán Burgos, Finance and Budget Director Implementation Date: March 31, 2025