FAC Explorer

Audit 51135

FY End
2022-06-30
Total Expended
$13.68M
Findings
10
Programs
13
Organization: Municipality of Naranjito (PR)
Year: 2022 Accepted: 2023-05-07
Auditor: Lopez Vega CPA Psc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
47710 2022-002 Significant Deficiency - I
47711 2022-002 Significant Deficiency - I
47712 2022-003 Significant Deficiency - P
47713 2022-003 Significant Deficiency - P
47714 2022-003 Significant Deficiency - P
624152 2022-002 Significant Deficiency - I
624153 2022-002 Significant Deficiency - I
624154 2022-003 Significant Deficiency - P
624155 2022-003 Significant Deficiency - P
624156 2022-003 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $5.62M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.14M Yes 2
93.575 Child Care and Development Block Grant $556,307 - 0
21.019 Coronavirus Relief Fund $290,868 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $137,969 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $57,895 - 0
93.569 Community Services Block Grant $50,000 - 0
93.053 Nutrition Services Incentive Program $30,603 - 0
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $24,701 - 0
16.575 Crime Victim Assistance $16,065 - 0
10.558 Child and Adult Care Food Program $15,124 - 0
14.871 Section 8 Housing Choice Vouchers $4,609 - 0
97.030 Community Disaster Loans $2,055 - 0

Contacts

Name Title Type
FKYEL3NAGHP3 Belinda Alvarez Laines Auditee
7878692200 Angel A. Lopez Vega Auditor
No contacts on file

Notes to SEFA

Title: LOANS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Municipality of Naranjito and is presented on the modified-accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The basis of accounting is the same used to prepare the fund financial statements. 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).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 a federal assistance award mechanism, 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. State or local government redistributions of federal awards to the Municipality, known as passthrough 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.Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. 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 the following programs are recognized based on other unique requirements:?Section 8 Housing Choice Voucher Program (HCV). Expenditures 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 PHAs fiscal period. ?Public assistance grants (FEMA). Expenditures are recognized in the period when: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred.?Loans or loans guarantee programs. Expenditures equal the value of new loans made or received during the audit period plus the beginning of the audit period balance of outstanding loans from previous years for which the federal government imposes continuing compliance requirements. For loans with no imposed continuing compliance requirements, expenditures are recognized when the related costs financed with loan proceeds are incurred. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Community Disaster Loan (CDL) awarded by FEMA has a total issue of $3,455,185 million at 2.75%. The program provides assistance to local governments to overcome a loss in revenues as a result of a natural disaster, in order to perform its governmental operational functions. Neither principal nor interest payments are required until maturity. The terms of the loan provide that if the municipality has not recovered sufficiently to meet its operating budget after three full fiscal years, repayment of all or part of the loan may be cancelled. The principal balance at June 30, 2022, was $3,455,185. Federal statutes and regulations do not impose continuing compliance requirements on the outstanding balance of the loan, other than the repayment of the loan. Therefore, the outstanding balance of the loan is not included in the face of the Schedule of Expenditures of Federal Awards. Program transactions for 2021-2022 year are as follows:Outstanding note balance, at beginning of year:$3,455,185Note advances received during fiscal year 2021-2022: $-Community Disaster Loan Forgiveness: $(3,455,185)Total outstanding note balance, June 30, 2022: $-Current year loan expenditures: $2,055 Unspent loan proceeds, as of June 30, 2022: $150,871
Title: AMERICAN RESCUE PLAN ACT (ARPA)-ASSISTANCE LISTING NUMBER 21.027 CORONAVIRU Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Municipality of Naranjito and is presented on the modified-accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The basis of accounting is the same used to prepare the fund financial statements. 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).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 a federal assistance award mechanism, 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. State or local government redistributions of federal awards to the Municipality, known as passthrough 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.Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. 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 the following programs are recognized based on other unique requirements:?Section 8 Housing Choice Voucher Program (HCV). Expenditures 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 PHAs fiscal period. ?Public assistance grants (FEMA). Expenditures are recognized in the period when: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred.?Loans or loans guarantee programs. Expenditures equal the value of new loans made or received during the audit period plus the beginning of the audit period balance of outstanding loans from previous years for which the federal government imposes continuing compliance requirements. For loans with no imposed continuing compliance requirements, expenditures are recognized when the related costs financed with loan proceeds are incurred. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. On March 11, 2021, was signed into law the American Rescue Plan Act (ARPA) of 2021, the latest COVID-19 stimulus package. Within ARPA, the Coronavirus State and Local Fiscal Recovery Fund provides $350 billion for states, municipalities, counties, tribes, and territories, including $130.2 billion for local governments split evenly between municipalities and counties. The Municipality of Naranjito started receiving the funds and incurring in expenditures on fiscal year 2021-2022.

Finding Details

Finding 2022-002
Finding Reference: 2022-002 Federal Agency: U.S. Department of Treasury Pass-Through Agency: P.R. Fiscal Agency and Financial Advisory Authority Federal Program: Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Requirement: Procurement Suspension & Debarment (I) Type of Finding: Significant Deficiency in Internal Controls / Instance of Noncompliance (SD) & (NC) Condition: In our Procurement Contract Provision Test, we evaluated five (5) contracts related to three (3) suppliers. We found that the Municipality does not have evidence of registration in the System for Award Management (SAM) or appropriate documentation to support that they were neither debarred nor suspended prior to the award of federal funds. Criteria: Pursuant to 31 CFR section 19.300, prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded by (a) checking the EPLS; or collecting a certification from the entity; or adding a contract provision. 2 CFR section 200.327 references Appendix II to Part 200, which establishes contract provisions that must be included in non-federal entity contracts under federal awards. According to 2 CFR section 200.327, Appendix II to Part 200, (h), a contract must not be awarded to parties listed on the government exclusions in the System for Award Management (SAM), in accordance with OMB guidelines at 2 CFR 180 that implement Executive 12549 and 12689. The SAM Exclusions contain the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties found ineligible under any legal or regulatory authority other than Executive Order 12549. Cause: There is lack of knowledge about the contract provisions required to be included in federal awards contracts and the procedure to verify if the contractors are excluded in the System for Award Management (SAM). Therefore, the Municipality has been awarding contracts without the proper procurement procedure. Effect: The program does not complied with the Procurement Suspension and Debarment requirements as established in 31 CFR section 19.300 and 2 CFR section 200.327. Recommendation: The System for Award Management provides a dated certification including the results obtained for the specified contractor. This certification should be retained at each contractor?s file. The Municipality must certain that the certification is dated on or before the contractor?s agreement date or first payment. To comply with this requirement proper procedures, which take into consideration that a contractor has an active account in SAM system, need to be implement because the SAM system will provide reliable information if the contractor?s record is properly updated. Questioned Cost: None Prior Year Finding: No Views of Responsible Officials and Planned Corrective Action: We are going to prepare written policies and procedures in accordance with Uniform Guidance. Implementation Date: During Fiscal Year 2022-2023. Responsible Person: Belinda Alvarez Finance Director
Finding 2022-002
Finding Reference: 2022-002 Federal Agency: U.S. Department of Treasury Pass-Through Agency: P.R. Fiscal Agency and Financial Advisory Authority Federal Program: Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Requirement: Procurement Suspension & Debarment (I) Type of Finding: Significant Deficiency in Internal Controls / Instance of Noncompliance (SD) & (NC) Condition: In our Procurement Contract Provision Test, we evaluated five (5) contracts related to three (3) suppliers. We found that the Municipality does not have evidence of registration in the System for Award Management (SAM) or appropriate documentation to support that they were neither debarred nor suspended prior to the award of federal funds. Criteria: Pursuant to 31 CFR section 19.300, prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded by (a) checking the EPLS; or collecting a certification from the entity; or adding a contract provision. 2 CFR section 200.327 references Appendix II to Part 200, which establishes contract provisions that must be included in non-federal entity contracts under federal awards. According to 2 CFR section 200.327, Appendix II to Part 200, (h), a contract must not be awarded to parties listed on the government exclusions in the System for Award Management (SAM), in accordance with OMB guidelines at 2 CFR 180 that implement Executive 12549 and 12689. The SAM Exclusions contain the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties found ineligible under any legal or regulatory authority other than Executive Order 12549. Cause: There is lack of knowledge about the contract provisions required to be included in federal awards contracts and the procedure to verify if the contractors are excluded in the System for Award Management (SAM). Therefore, the Municipality has been awarding contracts without the proper procurement procedure. Effect: The program does not complied with the Procurement Suspension and Debarment requirements as established in 31 CFR section 19.300 and 2 CFR section 200.327. Recommendation: The System for Award Management provides a dated certification including the results obtained for the specified contractor. This certification should be retained at each contractor?s file. The Municipality must certain that the certification is dated on or before the contractor?s agreement date or first payment. To comply with this requirement proper procedures, which take into consideration that a contractor has an active account in SAM system, need to be implement because the SAM system will provide reliable information if the contractor?s record is properly updated. Questioned Cost: None Prior Year Finding: No Views of Responsible Officials and Planned Corrective Action: We are going to prepare written policies and procedures in accordance with Uniform Guidance. Implementation Date: During Fiscal Year 2022-2023. Responsible Person: Belinda Alvarez Finance Director
Finding 2022-003
Finding Reference: 2022-003 Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Controls / Instance of Noncompliance (SD) & (NC) Condition: The Single Audit Report for the fiscal year ended June 30, 2022 was not issued within nine (9) months after the end of the audit period. The Data Collection Form and the reporting package was not submitted on a timely basis. Criteria: The Single Audit Act, as amended, requires that the audit report must be submitted to the Federal Audit Clearinghouse no later than nine (9) months after the end of the audit period. Cause: The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect: The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation: Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned cost: None Prior year finding: No Views of Responsible Officials and Planned Corrective Action: The fiscal year 2021-2022 Single Audit submission for Municipality of Naranjito will be submitted through the Federal Audit Clearinghouse (FAC) no later than April 30, 2023. About the subsequent year Single Audit, we engaged the audit services on May 30, 2023, and we are going to engage the financial statements preparation consulting services on July 2023, in order to comply with fiscal year 2022-2023 Single Audit submission dateline. Implementation Date: During Fiscal Year 2023-2024. Responsible Person: Belinda Alvarez Finance Director
Finding 2022-003
Finding Reference: 2022-003 Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Controls / Instance of Noncompliance (SD) & (NC) Condition: The Single Audit Report for the fiscal year ended June 30, 2022 was not issued within nine (9) months after the end of the audit period. The Data Collection Form and the reporting package was not submitted on a timely basis. Criteria: The Single Audit Act, as amended, requires that the audit report must be submitted to the Federal Audit Clearinghouse no later than nine (9) months after the end of the audit period. Cause: The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect: The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation: Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned cost: None Prior year finding: No Views of Responsible Officials and Planned Corrective Action: The fiscal year 2021-2022 Single Audit submission for Municipality of Naranjito will be submitted through the Federal Audit Clearinghouse (FAC) no later than April 30, 2023. About the subsequent year Single Audit, we engaged the audit services on May 30, 2023, and we are going to engage the financial statements preparation consulting services on July 2023, in order to comply with fiscal year 2022-2023 Single Audit submission dateline. Implementation Date: During Fiscal Year 2023-2024. Responsible Person: Belinda Alvarez Finance Director
Finding 2022-003
Finding Reference: 2022-003 Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Controls / Instance of Noncompliance (SD) & (NC) Condition: The Single Audit Report for the fiscal year ended June 30, 2022 was not issued within nine (9) months after the end of the audit period. The Data Collection Form and the reporting package was not submitted on a timely basis. Criteria: The Single Audit Act, as amended, requires that the audit report must be submitted to the Federal Audit Clearinghouse no later than nine (9) months after the end of the audit period. Cause: The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect: The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation: Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned cost: None Prior year finding: No Views of Responsible Officials and Planned Corrective Action: The fiscal year 2021-2022 Single Audit submission for Municipality of Naranjito will be submitted through the Federal Audit Clearinghouse (FAC) no later than April 30, 2023. About the subsequent year Single Audit, we engaged the audit services on May 30, 2023, and we are going to engage the financial statements preparation consulting services on July 2023, in order to comply with fiscal year 2022-2023 Single Audit submission dateline. Implementation Date: During Fiscal Year 2023-2024. Responsible Person: Belinda Alvarez Finance Director
Finding 2022-002
Finding Reference: 2022-002 Federal Agency: U.S. Department of Treasury Pass-Through Agency: P.R. Fiscal Agency and Financial Advisory Authority Federal Program: Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Requirement: Procurement Suspension & Debarment (I) Type of Finding: Significant Deficiency in Internal Controls / Instance of Noncompliance (SD) & (NC) Condition: In our Procurement Contract Provision Test, we evaluated five (5) contracts related to three (3) suppliers. We found that the Municipality does not have evidence of registration in the System for Award Management (SAM) or appropriate documentation to support that they were neither debarred nor suspended prior to the award of federal funds. Criteria: Pursuant to 31 CFR section 19.300, prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded by (a) checking the EPLS; or collecting a certification from the entity; or adding a contract provision. 2 CFR section 200.327 references Appendix II to Part 200, which establishes contract provisions that must be included in non-federal entity contracts under federal awards. According to 2 CFR section 200.327, Appendix II to Part 200, (h), a contract must not be awarded to parties listed on the government exclusions in the System for Award Management (SAM), in accordance with OMB guidelines at 2 CFR 180 that implement Executive 12549 and 12689. The SAM Exclusions contain the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties found ineligible under any legal or regulatory authority other than Executive Order 12549. Cause: There is lack of knowledge about the contract provisions required to be included in federal awards contracts and the procedure to verify if the contractors are excluded in the System for Award Management (SAM). Therefore, the Municipality has been awarding contracts without the proper procurement procedure. Effect: The program does not complied with the Procurement Suspension and Debarment requirements as established in 31 CFR section 19.300 and 2 CFR section 200.327. Recommendation: The System for Award Management provides a dated certification including the results obtained for the specified contractor. This certification should be retained at each contractor?s file. The Municipality must certain that the certification is dated on or before the contractor?s agreement date or first payment. To comply with this requirement proper procedures, which take into consideration that a contractor has an active account in SAM system, need to be implement because the SAM system will provide reliable information if the contractor?s record is properly updated. Questioned Cost: None Prior Year Finding: No Views of Responsible Officials and Planned Corrective Action: We are going to prepare written policies and procedures in accordance with Uniform Guidance. Implementation Date: During Fiscal Year 2022-2023. Responsible Person: Belinda Alvarez Finance Director
Finding 2022-002
Finding Reference: 2022-002 Federal Agency: U.S. Department of Treasury Pass-Through Agency: P.R. Fiscal Agency and Financial Advisory Authority Federal Program: Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Requirement: Procurement Suspension & Debarment (I) Type of Finding: Significant Deficiency in Internal Controls / Instance of Noncompliance (SD) & (NC) Condition: In our Procurement Contract Provision Test, we evaluated five (5) contracts related to three (3) suppliers. We found that the Municipality does not have evidence of registration in the System for Award Management (SAM) or appropriate documentation to support that they were neither debarred nor suspended prior to the award of federal funds. Criteria: Pursuant to 31 CFR section 19.300, prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded by (a) checking the EPLS; or collecting a certification from the entity; or adding a contract provision. 2 CFR section 200.327 references Appendix II to Part 200, which establishes contract provisions that must be included in non-federal entity contracts under federal awards. According to 2 CFR section 200.327, Appendix II to Part 200, (h), a contract must not be awarded to parties listed on the government exclusions in the System for Award Management (SAM), in accordance with OMB guidelines at 2 CFR 180 that implement Executive 12549 and 12689. The SAM Exclusions contain the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties found ineligible under any legal or regulatory authority other than Executive Order 12549. Cause: There is lack of knowledge about the contract provisions required to be included in federal awards contracts and the procedure to verify if the contractors are excluded in the System for Award Management (SAM). Therefore, the Municipality has been awarding contracts without the proper procurement procedure. Effect: The program does not complied with the Procurement Suspension and Debarment requirements as established in 31 CFR section 19.300 and 2 CFR section 200.327. Recommendation: The System for Award Management provides a dated certification including the results obtained for the specified contractor. This certification should be retained at each contractor?s file. The Municipality must certain that the certification is dated on or before the contractor?s agreement date or first payment. To comply with this requirement proper procedures, which take into consideration that a contractor has an active account in SAM system, need to be implement because the SAM system will provide reliable information if the contractor?s record is properly updated. Questioned Cost: None Prior Year Finding: No Views of Responsible Officials and Planned Corrective Action: We are going to prepare written policies and procedures in accordance with Uniform Guidance. Implementation Date: During Fiscal Year 2022-2023. Responsible Person: Belinda Alvarez Finance Director
Finding 2022-003
Finding Reference: 2022-003 Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Controls / Instance of Noncompliance (SD) & (NC) Condition: The Single Audit Report for the fiscal year ended June 30, 2022 was not issued within nine (9) months after the end of the audit period. The Data Collection Form and the reporting package was not submitted on a timely basis. Criteria: The Single Audit Act, as amended, requires that the audit report must be submitted to the Federal Audit Clearinghouse no later than nine (9) months after the end of the audit period. Cause: The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect: The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation: Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned cost: None Prior year finding: No Views of Responsible Officials and Planned Corrective Action: The fiscal year 2021-2022 Single Audit submission for Municipality of Naranjito will be submitted through the Federal Audit Clearinghouse (FAC) no later than April 30, 2023. About the subsequent year Single Audit, we engaged the audit services on May 30, 2023, and we are going to engage the financial statements preparation consulting services on July 2023, in order to comply with fiscal year 2022-2023 Single Audit submission dateline. Implementation Date: During Fiscal Year 2023-2024. Responsible Person: Belinda Alvarez Finance Director
Finding 2022-003
Finding Reference: 2022-003 Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Controls / Instance of Noncompliance (SD) & (NC) Condition: The Single Audit Report for the fiscal year ended June 30, 2022 was not issued within nine (9) months after the end of the audit period. The Data Collection Form and the reporting package was not submitted on a timely basis. Criteria: The Single Audit Act, as amended, requires that the audit report must be submitted to the Federal Audit Clearinghouse no later than nine (9) months after the end of the audit period. Cause: The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect: The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation: Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned cost: None Prior year finding: No Views of Responsible Officials and Planned Corrective Action: The fiscal year 2021-2022 Single Audit submission for Municipality of Naranjito will be submitted through the Federal Audit Clearinghouse (FAC) no later than April 30, 2023. About the subsequent year Single Audit, we engaged the audit services on May 30, 2023, and we are going to engage the financial statements preparation consulting services on July 2023, in order to comply with fiscal year 2022-2023 Single Audit submission dateline. Implementation Date: During Fiscal Year 2023-2024. Responsible Person: Belinda Alvarez Finance Director
Finding 2022-003
Finding Reference: 2022-003 Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Controls / Instance of Noncompliance (SD) & (NC) Condition: The Single Audit Report for the fiscal year ended June 30, 2022 was not issued within nine (9) months after the end of the audit period. The Data Collection Form and the reporting package was not submitted on a timely basis. Criteria: The Single Audit Act, as amended, requires that the audit report must be submitted to the Federal Audit Clearinghouse no later than nine (9) months after the end of the audit period. Cause: The Municipality did not comply with the established regulation as prescribed in OMB Super Circular Uniform Guidance. Effect: The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation: Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance. Questioned cost: None Prior year finding: No Views of Responsible Officials and Planned Corrective Action: The fiscal year 2021-2022 Single Audit submission for Municipality of Naranjito will be submitted through the Federal Audit Clearinghouse (FAC) no later than April 30, 2023. About the subsequent year Single Audit, we engaged the audit services on May 30, 2023, and we are going to engage the financial statements preparation consulting services on July 2023, in order to comply with fiscal year 2022-2023 Single Audit submission dateline. Implementation Date: During Fiscal Year 2023-2024. Responsible Person: Belinda Alvarez Finance Director