Finding Text
Finding Number: 2022-003
Federal Program: All major programs
Assistance Listing: 21.027, 21.019 and 97.036
Compliance Requirement: Reporting
Category: Material Weakness
Criteria
OMB Uniform Guidance subpart B 200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal year ending after December 25, 2015) or more in 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 sub part B. 220 establishes that except for the provision for biennial audit provided in paragraphs (a) and (b) of this section audits required by this part shall be per-formed annually.
Public Law 104-156, known as the Single Audit Act, section 7502 (h) (1) and (2)(B) 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, 2022, of the Municipality with due date of March 31, 2023 was submitted after the 12 months deadline. The Single Audit related to such a period was completed after 12-month deadline.
Cause
The municipality did not have internal controls and processes to enable compliance with com-pleting and submitting the Single Audit Report of the municipality 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 compli-ance with laws, regulations, and provisions of contracts and grant agreements.
Questioned Costs
None
Perspective Information
Finding represents a significant problem. The municipality must plan the submission process in time.
Prior Year Audit Finding
2021-002
Recommendation
The municipality shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report to the Federal Clearinghouse before the 9 months deadline. Finding represents a significant problem. The municipality will accelerate the process to contract auditors to carry out the audit and submit the report on time. Views of Responsible Officials
Management concurs with the finding. We will monitor our internal control activities directly related to the financial accounting of state funds and federal funds. We will implement procedures for improving information communication between the accounting finance office and the office of compliance so rec-ords are reconciled and are available on time for audit financial statements, including Single Audit.
Responsible Officials
Daiana González Hernández- Finance Director
Estimated Completion Date
Implementation is expected to be completed on or before July 31, 2025.