Finding Text
Finding No. 2022-005 - Late Filing of Single Audit Reporting Package
Federal Programs Workforce Innovation and Opportunity Act Cluster
ALN 17.258, 17.259, and 17.278
Federal Agency U.S. Department of Labor (DOL)
Compliance Requirement Reporting
Type of Finding
Internal Control over Compliance
Category
Significant Deficiency
Criteria
As required by the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance), § 200.512 Report submission (a) (1), “ the audit must be completed and the data collection form
described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must
be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after
the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package
is due the next business day”.
Condition
The Department has not submitted the Single Audit Reporting Packages for the year ended June 30, 2022.
Cause
The Single Audit Reporting Packages late submission results from the operational changes generated by Act
No. 171 of October 2, 2014 (Act No. 171) enactment. Act No. 171 integrated the Labor Development Program
and the WIOA Cluster Programs with the Department. This merge, in conjunction with other difficulties in
accounting and reporting processes, has delayed the Department’s efforts to bring up to date all federal filings.
Puerto Rico Department of Economic Development and Commerce
(An Agency of the Commonwealth of Puerto Rico)
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2022
- 100 -
Part III - Findings and Questioned Costs Relating to Federal Awards – (continued)
Finding No. 2022-005 - Late Filing of Single Audit Reporting Package – (continued)
Effect
If the Federal awarding agency or pass-through entity determines that noncompliance cannot be remedied by
imposing additional conditions, the Federal awarding agency or passthrough entity may take one or more of
the following actions, as appropriate in the circumstances:
a) Temporarily withhold cash payments pending correction of the deficiency by the non-Federal entity or
more severe enforcement action by the Federal awarding agency or passthrough entity.
b) Temporarily withhold cash payments pending correction of the deficiency by the non-Federal entity or
more severe enforcement action by the Federal awarding agency or passthrough entity.
c) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost
of the activity or action not in compliance.
d) Wholly or partly suspend or terminate the Federal award.
e) Initiate suspension or debarment proceedings as authorized under 2 CFR part 180 and Federal awarding
agency regulations (or in the case of a passthrough entity, recommend such a proceeding be initiated
by a Federal awarding agency).
f) Withhold further Federal awards for the project or program.
g) Take other remedies that may be legally available.
Questioned Costs
None.
Identification as a Repeated Finding
This is a repeat finding from the immediate previous audit, Finding No. 2021-007.
Puerto Rico Department of Economic Development and Commerce
(An Agency of the Commonwealth of Puerto Rico)
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2022
- 101 -
Part III - Findings and Questioned Costs Relating to Federal Awards – (continued)
Finding No. 2022-005 - Late Filing of Single Audit Reporting Package – (continued)
Recommendation
The data collection form and single audit reporting package must be submitted within the required due dates.
Also, we strongly suggest the accounting department to take whatever steps necessary to ensure that senior
management receives current and accurate financial information on a timely basis. If it is determined that the
department is understaffed, steps should be taken to alleviate this problem so that work can remain current
without an undue hardship on any one employee. Once up to date, the accounting staff must consistently
provide management with the accurate financial reports and information necessary to effectively manage the
Department’s operations.
Views of Responsible Official (Unaudited)
Refer to the corrective action plan on pages 110-114