Finding 1136499 (2023-005)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-05-11
Audit: 355992
Organization: Commonwealth Ports Authority (MP)

AI Summary

  • Core Issue: One of three quarterly reports was inaccurate, showing a $32,135 discrepancy in federal share reporting.
  • Impacted Requirements: Noncompliance with reporting standards as outlined in grant CNMI22028.
  • Recommended Follow-Up: Implement regular monitoring of reports to ensure accuracy and alignment with accounting records.

Finding Text

Finding No.: 2023-005 Federal Agency: U.S. Department of the Treasury Pass-Through Entity: CNMI Government AL Program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award No. and year: CNMI22028 2021-2023 Area: Reporting Questioned Costs: $-0- Criteria: In accordance with the grant award CNMI22028, CPA will submit quarterly reports to the Department of Finance Office of the Secretary that are accurately prepared and supported. Condition: For one (or 33%) of three reports examined, the quarter ending 9/30/2023 cumulative amount reported as federal share of $2,009,788 did not agree with expected cumulative federal share per audit expectation of $2,041,923, resulting in a variance of $32,135. Cause: CPA did not effectively monitor the accuracy and completeness of the financial report based on underlying accounting records. Effect: CPA is in noncompliance with the applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should regularly monitor reports to verify that amounts reported are supported by underlying accounting records. Views of Responsible Officials: Management states agreement with the finding. Refer to separate Corrective Action Plan.

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 560053 2023-003
    Material Weakness Repeat
  • 560054 2023-003
    Material Weakness Repeat
  • 560055 2023-004
    Material Weakness
  • 560056 2023-004
    Material Weakness
  • 560057 2023-005
    Material Weakness
  • 1136495 2023-003
    Material Weakness Repeat
  • 1136496 2023-003
    Material Weakness Repeat
  • 1136497 2023-004
    Material Weakness
  • 1136498 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program, Covid-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $7.59M
97.U01 Electronic Baggage Screening Program $4.80M
21.027 Coronavirus State and Local Fiscal Recovery Funds $940,923
15.875 Economic, Social, and Political Development of the Territories $181,291
97.072 National Explosives Detection Canine Team Program $159,257
97.U02 Law Enforcement Officer Reimbursement Program $55,850