Finding 1132391 (2023-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-04-25
Audit: 354662
Organization: Municipality of Lajas (PR)

AI Summary

  • Core Issue: The Single Audit Report for the fiscal year ended June 30, 2023, was submitted after the 11-month deadline, violating the Single Audit Act.
  • Impacted Requirements: Non-compliance with Public Law 104-156 could lead to administrative actions and reflects poor management of federal awards.
  • Recommended Follow-Up: The municipality should implement internal controls and expedite the auditor contracting process to ensure timely submission of future reports.

Finding Text

FINDING NUMBER 2023-002 REQUIREMENT REPORTING TYPE OF FINDING MATERIAL WEAKNESS CONDITION The Single Audit Report for the fiscal year ended June 30, 2023, of the Municipality with due date of March 31, 2024 was submitted after the 11 months deadline. The Single Audit related to such a period was completed after 11-month deadline. CRITERIA 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. CAUSE The municipality did not have internal controls and processes to enable compliance with completing 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 compliance with laws, regulations, and provisions of contracts and grant agreements. QUESTIONED COST None 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-month deadline. Finding represents a significant problem. The municipality will accelerate the SECTION III – FEDERAL AWARDS FINDING AND QUESTIONED COSTS – (CONTINUED) FINDING NUMBER 2023-002 (CONTINUED) process to contract auditors to carry out the audit and submit the report on time. PRIOR YEAR FINDING This finding is a prior year finding identified as 2022-002. VIEWS OF RESPONSIBLE The Municipality will take all necessary administrative measures to OFFICIALS AND PLANNED promptly address and correct the situation. I will instruct the Finance CORRECTIVE ACTION Department to submit all required financial information promptly to our financial consultant and external auditor to meet the deadline for submitting the Single Audit Report for the year 2024 Responsible Officials Ramona Pacheco Machado Estimated Completion Date April 30, 2025

Categories

Reporting Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 555949 2023-002
    Material Weakness Repeat
  • 555950 2023-002
    Material Weakness Repeat
  • 555951 2023-002
    Material Weakness Repeat
  • 555952 2023-002
    Material Weakness Repeat
  • 1132392 2023-002
    Material Weakness Repeat
  • 1132393 2023-002
    Material Weakness Repeat
  • 1132394 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.66M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $2.46M
97.030 Community Disaster Loans $1.08M
10.770 Water and Waste Grants and Loans and Loan Guarantees (section 306c) $412,546
93.575 Child Care and Development Block Grant $201,559
93.569 Community Services Block Grant $65,386
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $64,572
14.871 Section 8 Housing Choice Vouchers $51,587
93.053 Nutrition Services Incentive Program $34,309
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $22,537
10.558 Child and Adult Care Food Program $16,805
20.600 State and Community Highway Safety $2,474
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $39