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