Finding Text
Criteria
2 CFR part 75.512, the Uniform Guidance established the audit must be completed
nine months after the end of audit period and the Single Audit Reporting package
and Data Collection Form (SF-SAC) Federal Audit Clearing House, must be
submitted within the earlier 30 calendar days after receipt of the auditor’s report, or
nine months after the end audit period, whichever comes first.
Condition
Preliminary Financial reports and programs financial information were available on
December 5, 2024, to prepare the Single Audit Reporting Package.
Questioned cost
Not determined.
Cause
Control procedures were not established to provide on time finance information to
prepare the Single Audit reporting package.
Effect
The Municipality did not comply with the submission date required for the Data
Collection Form and Reporting Package, this could affect the continuance and new
approvals of federal funds. In addition, for the next two (2) fiscal years the
Municipality cannot be considered by the auditor as a low-risk auditee
Recommendation:
To prepare a calendar responsibility of Federal funds due dates financial statements
to be prepared on time. Adequate training must be provided to finance personnel.
The governing body must create an Audit and Finance Committee to revise monthly
financial statements.
Management response:
The municipal management, especially the Finance Department, is addressing this
situation with the level of responsibility it requires. Therefore, I undertake to
thoroughly evaluate all internal areas involved, as well as the performance of
consulting and auditing firms, with the aim of implementing the necessary
corrections and adjustments to prevent this situation from happening again in the
future