Finding Text
Condition:
During our audit procedures, we noted that the following financial reports were not submitted on time.
Criteria:
As stated in the award terms 2.CFR 200.328, financial reports are due on a quarterly basis.
Cause:
The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner.
Effect:
Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting on its financial stability and mission delivery.
Recommendation:
FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.