Audit 399238

FY End
2021-06-30
Total Expended
$1.70M
Findings
1
Programs
1
Year: 2021 Accepted: 2026-04-21

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1208253 2021-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
21.019 CORONAVIRUS RELIEF FUND $1.70M Yes 1

Contacts

Name Title Type
JBS2ELJ9RDU3 Nelson Diaz Clemente Auditee
7875272769 Velvette Barnes Pico Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activities of the Autonomous Corporation of Humacao of the Commonwealth of Puerto Rico (Corporation) under programs of the Federal government for the fiscal year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Corporation. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. The Corporation reporting entity is defined in Note (1) (A) to the basic financial statements. All federal financial awards received directly from federal agency as well as federal financial awards passed-through other government agencies are included on the Schedule.
A. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost Principles for State and Local Government or those contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. C. Pass-through entity identifying numbers are presented where available. D. The Corporation has not elected to use the 10 percent de minimis 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.
The Federal Assistance Listing Number, 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.
Expenditures of federal awards are reported in the Corporation’s Statement of Revenues, Expenditures and Changes in Net Position as follows: COVID Assistances Funds - $1,699,495.
The Single Audit reporting package, as defined and required in 2 CFR 200 for fiscal year ended June 30, 2021, could not be submitted in a timely manner because of the effects of the Novel Coronavirus COVID-19. As further discussed in the Corporation’s Notes to the Financial Statements included in its audited financial statements for the same year, the Corporation’s activities were affected by the Executive Order issued by the Governor of Puerto Rico. On March 19, 2021, the OMB issued the M-21-20, stated that: “Awarding agencies, in their capacity as cognizant or oversight agencies for audit, should allow recipients and subrecipients that have not yet filed their single audits with the Federal Audit Clearinghouse as of the date of the issuance of this memorandum that have fiscal year-ends through June 30, 2021, to delay the completion and submission of the Single Audit reporting package, as required under Subpart F of 2 CFR §200.501 to six months beyond the normal due date. No further action by awarding agencies is required to enact this extension. This extension does not require individual recipients and subrecipients to seek approval for the extension by the cognizant or oversight agency for audit; however, recipients and subrecipients should maintain documentation of the reason for the delayed filing. Recipients and subrecipients taking advantage of this extension would still qualify as a "low-risk auditee" under the criteria of 2 CFR § 200.520(a). (2 CFR § 200.501)”.

Finding Details

Criteria The audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor’s report(s) or nine months after the end of the audit period (whichever is earlier). The cognizant agency for audit or oversight agency for audit (in the absence of a cognizant agency for audit) may authorize and extension when the nine-month timeframe would place an undue burden on the auditee. If the due date falls on a Saturday, Sunday, or Federal holiday, the rporting package is due the next business day. OMB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal years ending after December 25,2015) or more in a 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 subpart B .220 establishes that except for the provisions for biennial audits 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, sections 7502 (h) (1) and (2XB) 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, 2021 of the SIFC’s with due date of March 31, 2022 was submitted after the 47 months deadline. The Single Audit related to such period was completed after the 47-month deadline. Cause The SIFC did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the SIFC 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. Questioned costs None Perspective Information Finding represents a significant problem. The Corporation will accelerate the process to contract auditors to carry out the audit and submit the report on time. Recommendations The SIFC shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of SIFC to the Federal Clearinghouse before the 9 months deadline. Views of Responsible Officials As part of the preventive measures to file the Single Audit in a timely manner, an employee was selected to specifically dedicate time and effort related to auditing processes. Coordination of weekly meetings and phone calls with the external audit firm and the Programs has rendered immediate results to follow through with an established work plan. Therefore, time has been properly managed to collect the necessary information. Responsible Officials Director of Finance & Administration Estimated Completion Date Implementation is expected to be completed on or before March 30, 2026