FAC Explorer

Audit 348980

FY End
2022-06-30
Total Expended
$8.59M
Findings
8
Programs
12
Organization: Municipality of Camuy (PR)
Year: 2022 Accepted: 2025-03-27
Auditor: Aquino De Cordova LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
537925 2022-003 Material Weakness Yes L
537926 2022-004 Material Weakness - L
537927 2022-003 Material Weakness Yes L
537928 2022-003 Material Weakness Yes L
1114367 2022-003 Material Weakness Yes L
1114368 2022-004 Material Weakness - L
1114369 2022-003 Material Weakness Yes L
1114370 2022-003 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.36M Yes 2
21.019 Coronavirus Relief Fund $1.40M Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $795,768 Yes 1
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $524,127 - 0
14.248 Community Development Block Grants Section 108 Loan Guarantees $380,080 - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $330,270 - 0
14.850 Public Housing Operating Fund $271,435 - 0
14.272 National Disaster Resilience Competition $189,314 - 0
14.231 Emergency Solutions Grant Program $46,500 - 0
93.575 Child Care and Development Block Grant $46,239 - 0
10.558 Child and Adult Care Food Program $38,928 - 0
14.871 Section 8 Housing Choice Vouchers $2,478 - 0

Contacts

Name Title Type
KL7AFYA6FXD5 Daiana González Hernández Auditee
7878982160 Velvette Barnes Pico Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - GENERAL Accounting Policies: 1) The accompanying Schedule of Expenditures of Federal Awards is prepared from Mu-nicipality's accounting records and is not intended to present financial position or the results of operations. 2) The Municipality in accordance with the terms records the financial transactions and conditions of the grants, which are consistent with accounting principles generally ac-cepted in the United States of America. 3) Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. De Minimis Rate Used: N Rate Explanation: The Municipality has elected not to use the ten percent the minimum indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant ac-tivity of the Municipality of Camuy, Puerto Rico (Municipality) and is presented on the modi-fied accrual basis. The information in this schedule is presented in accordance with the re-quirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Re-quirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts, presented in this schedule may differ from amounts presented in, or used in the preparation of, the general-purpose financial statements. The reporting entity is de-fined in Note A to the general purpose combined financial statements.
Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: 1) The accompanying Schedule of Expenditures of Federal Awards is prepared from Mu-nicipality's accounting records and is not intended to present financial position or the results of operations. 2) The Municipality in accordance with the terms records the financial transactions and conditions of the grants, which are consistent with accounting principles generally ac-cepted in the United States of America. 3) Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. De Minimis Rate Used: N Rate Explanation: The Municipality has elected not to use the ten percent the minimum indirect cost rate allowed under the Uniform Guidance. 1) The accompanying Schedule of Expenditures of Federal Awards is prepared from Mu-nicipality's accounting records and is not intended to present financial position or the results of operations. 2) The Municipality in accordance with the terms records the financial transactions and conditions of the grants, which are consistent with accounting principles generally ac-cepted in the United States of America. 3) Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first.
Title: NOTE C - FEDERAL DOMESTIC ASSISTANCE NUMBER Accounting Policies: 1) The accompanying Schedule of Expenditures of Federal Awards is prepared from Mu-nicipality's accounting records and is not intended to present financial position or the results of operations. 2) The Municipality in accordance with the terms records the financial transactions and conditions of the grants, which are consistent with accounting principles generally ac-cepted in the United States of America. 3) Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. De Minimis Rate Used: N Rate Explanation: The Municipality has elected not to use the ten percent the minimum indirect cost rate allowed under the Uniform Guidance. The Catalog of Federal Domestic Assistance (CFDA) numbers included in this Schedule are determined based on the program name, review of grant contract information and the Office of Management and Budget's Catalogue of Federal Domestic Assistance
Title: NOTE D - PASS-THROUGH ENTITY IDENTIFYING NUMBER Accounting Policies: 1) The accompanying Schedule of Expenditures of Federal Awards is prepared from Mu-nicipality's accounting records and is not intended to present financial position or the results of operations. 2) The Municipality in accordance with the terms records the financial transactions and conditions of the grants, which are consistent with accounting principles generally ac-cepted in the United States of America. 3) Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. De Minimis Rate Used: N Rate Explanation: The Municipality has elected not to use the ten percent the minimum indirect cost rate allowed under the Uniform Guidance. State or local government redistribution of federal awards to the Municipality, treated as if they were received directly from the federal government. Uniform Guidance requires the schedule to include the name of the pass-through entity and identifying number assigned by the pass-through entity for federal awards received as a sub-recipient. Numbers identified as N/A are not available.
Title: NOTE E - MAJOR PROGRAMS Accounting Policies: 1) The accompanying Schedule of Expenditures of Federal Awards is prepared from Mu-nicipality's accounting records and is not intended to present financial position or the results of operations. 2) The Municipality in accordance with the terms records the financial transactions and conditions of the grants, which are consistent with accounting principles generally ac-cepted in the United States of America. 3) Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. De Minimis Rate Used: N Rate Explanation: The Municipality has elected not to use the ten percent the minimum indirect cost rate allowed under the Uniform Guidance. Major programs are identified in the Summary of Auditor's Results Section of the Schedule of Findings and Questioned Costs.
Title: NOTE F - INDIRECT COST RATE Accounting Policies: 1) The accompanying Schedule of Expenditures of Federal Awards is prepared from Mu-nicipality's accounting records and is not intended to present financial position or the results of operations. 2) The Municipality in accordance with the terms records the financial transactions and conditions of the grants, which are consistent with accounting principles generally ac-cepted in the United States of America. 3) Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. De Minimis Rate Used: N Rate Explanation: The Municipality has elected not to use the ten percent the minimum indirect cost rate allowed under the Uniform Guidance. The Municipality has elected not to use the ten percent the minimum indirect cost rate allowed under the Uniform Guidance.
Title: NOTE G - SCHEDULE NOT IN AGREEMENT WITH OTHER FEDERAL AWARD RE-PORTING Accounting Policies: 1) The accompanying Schedule of Expenditures of Federal Awards is prepared from Mu-nicipality's accounting records and is not intended to present financial position or the results of operations. 2) The Municipality in accordance with the terms records the financial transactions and conditions of the grants, which are consistent with accounting principles generally ac-cepted in the United States of America. 3) Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. De Minimis Rate Used: N Rate Explanation: The Municipality has elected not to use the ten percent the minimum indirect cost rate allowed under the Uniform Guidance. The information included in the Schedule may not fully agree with other federal award reports submitted directly to federal granting agencies.
Title: NOTE H - RELATIONSHIP TO FEDERAL FINANCIAL REPORTS Accounting Policies: 1) The accompanying Schedule of Expenditures of Federal Awards is prepared from Mu-nicipality's accounting records and is not intended to present financial position or the results of operations. 2) The Municipality in accordance with the terms records the financial transactions and conditions of the grants, which are consistent with accounting principles generally ac-cepted in the United States of America. 3) Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. De Minimis Rate Used: N Rate Explanation: The Municipality has elected not to use the ten percent the minimum indirect cost rate allowed under the Uniform Guidance. Expenditures of federal awards are reported in the Municipality's Statement of Revenues, Ex-penditures and Changes in Fund Balances — Governmental Fund as follows: Loan Guarantee Fund - $380,080, Cares Act-Covid-19 - $4,760,065, and Other Governmental Funds - $3,450,300

Finding Details

Finding 2022-003
Finding Number: 2022-003 Federal Program: All major programs Assistance Listing: 21.027, 21.019 and 97.036 Compliance Requirement: Reporting Category: Material Weakness Criteria OMB Uniform Guidance subpart B 200(a) establishes that Non-Federal 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 per-formed 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. 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. Cause The municipality did not have internal controls and processes to enable compliance with com-pleting 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 compli-ance with laws, regulations, and provisions of contracts and grant agreements. Questioned Costs None Perspective Information Finding represents a significant problem. The municipality must plan the submission process in time. Prior Year Audit Finding 2021-002 Recommendation The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9 months deadline. Finding represents a significant problem. The municipality will accelerate the process to contract auditors to carry out the audit and submit the report on time. Views of Responsible Officials Management concurs with the finding. We will monitor our internal control activities directly related to the financial accounting of state funds and federal funds. We will implement procedures for improving information communication between the accounting finance office and the office of compliance so rec-ords are reconciled and are available on time for audit financial statements, including Single Audit. Responsible Officials Daiana González Hernández- Finance Director Estimated Completion Date Implementation is expected to be completed on or before July 31, 2025.
Finding 2022-004
Finding Number: 2022-004 Federal Program: American Rescue Plan Act Assistance Listing: 21.027 Compliance Requirement: Reporting Category: Material Weakness in Internal Control- Financial Reporting Criteria On January 6, 2022, the U.S. Department of the Treasury (“Treasury”) adopted the 2022 final rule implementing the SLFRF program. The 2022 final rule became effective on April 1, 2022. This Compliance and Reporting guidance establishes that recipients must submit one initial Interim Report, quarterly or annual Project and Expenditure reports which include subaward reporting, and in some cases annual Recovery Plan reports. Organization should appropriately maintain accounting records for compiling and reporting accurate, compliant financial data, in accordance with appropriate accounting standards and principles. In addition, where appropri-ate, the organization needs to establish controls to ensure completion and timely submission of all mandatory performance and/or compliance reporting. The initial Project and Expenditure Report covered from March 3, 2021 to March 31, 2022 and was required to be submitted to Treasury by April 30, 2022. The subsequent annual reports cover one calendar year and must be submitted to Treasury by April 30. Condition For our tests, we requested copies of ARPA annual report (Project and Expenditure Report) for the fiscal year ending on June 30, 2022. After our examination of the ARPA annual report (Pro-ject and Expenditure Report), we noted that is a significant discrepancy between what is report-ed in the annual report versus what is registered on general ledger. The difference is the follow-ing:Cause These situations occurred because program management has not established effective proce-dures to ensure the timely performed reconciliations between the expenditures reported in the Annual Report versus the expenditures registered on the accounting system. Effect Because there is no timely and accurate reconciliation, the program may be providing incorrect financial reports to federal granting agency. In addition, the maintenance of alternate account-ing records (or program) that are not reconciled may result in inaccurate financial reporting. Questioned Costs None Prior Year Audit Finding None Recommendations The program should establish enhanced policies and procedures that must maintain an adequate communication with the Finance Office in order to assure the proper reconciliation between what is reported in the annual report with what is registered on the accounting system. Views of responsible officials Management concurs with the finding. We will enforce and continue strengthening control over financial reporting and enforce procedures to reconcile information of accounting balances, trans-actions, and ARPA annual report (Project and Expenditure Report), in order to prevent future dif-ferences. Responsible Officials Daiana González Hernández- Finance Director Estimated Completion Date Implementation is expected to be completed on or before July 31, 2025.
Finding 2022-003
Finding Number: 2022-003 Federal Program: All major programs Assistance Listing: 21.027, 21.019 and 97.036 Compliance Requirement: Reporting Category: Material Weakness Criteria OMB Uniform Guidance subpart B 200(a) establishes that Non-Federal 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 per-formed 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. 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. Cause The municipality did not have internal controls and processes to enable compliance with com-pleting 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 compli-ance with laws, regulations, and provisions of contracts and grant agreements. Questioned Costs None Perspective Information Finding represents a significant problem. The municipality must plan the submission process in time. Prior Year Audit Finding 2021-002 Recommendation The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9 months deadline. Finding represents a significant problem. The municipality will accelerate the process to contract auditors to carry out the audit and submit the report on time. Views of Responsible Officials Management concurs with the finding. We will monitor our internal control activities directly related to the financial accounting of state funds and federal funds. We will implement procedures for improving information communication between the accounting finance office and the office of compliance so rec-ords are reconciled and are available on time for audit financial statements, including Single Audit. Responsible Officials Daiana González Hernández- Finance Director Estimated Completion Date Implementation is expected to be completed on or before July 31, 2025.
Finding 2022-003
Finding Number: 2022-003 Federal Program: All major programs Assistance Listing: 21.027, 21.019 and 97.036 Compliance Requirement: Reporting Category: Material Weakness Criteria OMB Uniform Guidance subpart B 200(a) establishes that Non-Federal 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 per-formed 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. 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. Cause The municipality did not have internal controls and processes to enable compliance with com-pleting 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 compli-ance with laws, regulations, and provisions of contracts and grant agreements. Questioned Costs None Perspective Information Finding represents a significant problem. The municipality must plan the submission process in time. Prior Year Audit Finding 2021-002 Recommendation The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9 months deadline. Finding represents a significant problem. The municipality will accelerate the process to contract auditors to carry out the audit and submit the report on time. Views of Responsible Officials Management concurs with the finding. We will monitor our internal control activities directly related to the financial accounting of state funds and federal funds. We will implement procedures for improving information communication between the accounting finance office and the office of compliance so rec-ords are reconciled and are available on time for audit financial statements, including Single Audit. Responsible Officials Daiana González Hernández- Finance Director Estimated Completion Date Implementation is expected to be completed on or before July 31, 2025.
Finding 2022-003
Finding Number: 2022-003 Federal Program: All major programs Assistance Listing: 21.027, 21.019 and 97.036 Compliance Requirement: Reporting Category: Material Weakness Criteria OMB Uniform Guidance subpart B 200(a) establishes that Non-Federal 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 per-formed 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. 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. Cause The municipality did not have internal controls and processes to enable compliance with com-pleting 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 compli-ance with laws, regulations, and provisions of contracts and grant agreements. Questioned Costs None Perspective Information Finding represents a significant problem. The municipality must plan the submission process in time. Prior Year Audit Finding 2021-002 Recommendation The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9 months deadline. Finding represents a significant problem. The municipality will accelerate the process to contract auditors to carry out the audit and submit the report on time. Views of Responsible Officials Management concurs with the finding. We will monitor our internal control activities directly related to the financial accounting of state funds and federal funds. We will implement procedures for improving information communication between the accounting finance office and the office of compliance so rec-ords are reconciled and are available on time for audit financial statements, including Single Audit. Responsible Officials Daiana González Hernández- Finance Director Estimated Completion Date Implementation is expected to be completed on or before July 31, 2025.
Finding 2022-004
Finding Number: 2022-004 Federal Program: American Rescue Plan Act Assistance Listing: 21.027 Compliance Requirement: Reporting Category: Material Weakness in Internal Control- Financial Reporting Criteria On January 6, 2022, the U.S. Department of the Treasury (“Treasury”) adopted the 2022 final rule implementing the SLFRF program. The 2022 final rule became effective on April 1, 2022. This Compliance and Reporting guidance establishes that recipients must submit one initial Interim Report, quarterly or annual Project and Expenditure reports which include subaward reporting, and in some cases annual Recovery Plan reports. Organization should appropriately maintain accounting records for compiling and reporting accurate, compliant financial data, in accordance with appropriate accounting standards and principles. In addition, where appropri-ate, the organization needs to establish controls to ensure completion and timely submission of all mandatory performance and/or compliance reporting. The initial Project and Expenditure Report covered from March 3, 2021 to March 31, 2022 and was required to be submitted to Treasury by April 30, 2022. The subsequent annual reports cover one calendar year and must be submitted to Treasury by April 30. Condition For our tests, we requested copies of ARPA annual report (Project and Expenditure Report) for the fiscal year ending on June 30, 2022. After our examination of the ARPA annual report (Pro-ject and Expenditure Report), we noted that is a significant discrepancy between what is report-ed in the annual report versus what is registered on general ledger. The difference is the follow-ing:Cause These situations occurred because program management has not established effective proce-dures to ensure the timely performed reconciliations between the expenditures reported in the Annual Report versus the expenditures registered on the accounting system. Effect Because there is no timely and accurate reconciliation, the program may be providing incorrect financial reports to federal granting agency. In addition, the maintenance of alternate account-ing records (or program) that are not reconciled may result in inaccurate financial reporting. Questioned Costs None Prior Year Audit Finding None Recommendations The program should establish enhanced policies and procedures that must maintain an adequate communication with the Finance Office in order to assure the proper reconciliation between what is reported in the annual report with what is registered on the accounting system. Views of responsible officials Management concurs with the finding. We will enforce and continue strengthening control over financial reporting and enforce procedures to reconcile information of accounting balances, trans-actions, and ARPA annual report (Project and Expenditure Report), in order to prevent future dif-ferences. Responsible Officials Daiana González Hernández- Finance Director Estimated Completion Date Implementation is expected to be completed on or before July 31, 2025.
Finding 2022-003
Finding Number: 2022-003 Federal Program: All major programs Assistance Listing: 21.027, 21.019 and 97.036 Compliance Requirement: Reporting Category: Material Weakness Criteria OMB Uniform Guidance subpart B 200(a) establishes that Non-Federal 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 per-formed 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. 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. Cause The municipality did not have internal controls and processes to enable compliance with com-pleting 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 compli-ance with laws, regulations, and provisions of contracts and grant agreements. Questioned Costs None Perspective Information Finding represents a significant problem. The municipality must plan the submission process in time. Prior Year Audit Finding 2021-002 Recommendation The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9 months deadline. Finding represents a significant problem. The municipality will accelerate the process to contract auditors to carry out the audit and submit the report on time. Views of Responsible Officials Management concurs with the finding. We will monitor our internal control activities directly related to the financial accounting of state funds and federal funds. We will implement procedures for improving information communication between the accounting finance office and the office of compliance so rec-ords are reconciled and are available on time for audit financial statements, including Single Audit. Responsible Officials Daiana González Hernández- Finance Director Estimated Completion Date Implementation is expected to be completed on or before July 31, 2025.
Finding 2022-003
Finding Number: 2022-003 Federal Program: All major programs Assistance Listing: 21.027, 21.019 and 97.036 Compliance Requirement: Reporting Category: Material Weakness Criteria OMB Uniform Guidance subpart B 200(a) establishes that Non-Federal 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 per-formed 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. 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. Cause The municipality did not have internal controls and processes to enable compliance with com-pleting 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 compli-ance with laws, regulations, and provisions of contracts and grant agreements. Questioned Costs None Perspective Information Finding represents a significant problem. The municipality must plan the submission process in time. Prior Year Audit Finding 2021-002 Recommendation The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9 months deadline. Finding represents a significant problem. The municipality will accelerate the process to contract auditors to carry out the audit and submit the report on time. Views of Responsible Officials Management concurs with the finding. We will monitor our internal control activities directly related to the financial accounting of state funds and federal funds. We will implement procedures for improving information communication between the accounting finance office and the office of compliance so rec-ords are reconciled and are available on time for audit financial statements, including Single Audit. Responsible Officials Daiana González Hernández- Finance Director Estimated Completion Date Implementation is expected to be completed on or before July 31, 2025.