FAC Explorer

Finding 1159996 (2023-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2025-10-06
Audit: 370478
Organization: Virgin Islands Economic Development Authority (VI)
Auditor: Bert Smith and Company

AI Summary

  • Core Issue: The Economic Development Authority failed to submit the single audit report to the Federal Audit Clearinghouse within the required nine-month period after year-end.
  • Impacted Requirements: This non-compliance violates 2 CFR 200.512, which mandates timely submission of audit reports.
  • Recommended Follow-Up: Establish a clear audit timeline to ensure future reports are submitted on time, addressing delays caused by personnel transitions.

Finding Text

Finding Number: 2023-001 Prior Year Finding Number: 2022-001 Compliance Requirement: Data Collection Form and Single Audit Reporting Package Program: Economic Adjustment Assistance CFDA #: 21.027 Award #: SLFRP 3818 Award Years: 05/01/2022 – 12/31/2023 10/01/2022 – 12/31/2026 Criteria: 2 CFR 200.512 requires that an entity’s single audit is to be submitted the earlier of thirty days after the receipt of the auditor’s report or nine months after the end of the audit period to the Federal Audit Clearinghouse (FAC). Condition: The Economic Development Authority (the Authority) audited financial statements for the September 30, 2023, year-end was not submitted to the Federal Audit Clearinghouse within the stipulated nine months after year-end. Questioned Costs: $-0- Context: This is a condition identified based on review of Uniform Guidance requirements and the grant agreements. Effect: The project is not in compliance with the reporting compliance of the Office of Management and Budget for non-profit, state and local government entities. Cause: There were transitions in financial personnel which resulted in delays in the audit process. Recommendation: We recommend that the Authority meets the reporting deadline by establishing an audit timeline to ensure that the reporting package is submitted to the FAC annually within the required timeframe. Views of Responsible Management Official and Corrective Action Plan: Management concurs with finding. See Current Year Corrective Action Plan

Corrective Action Plan

2023-001: Data Collection Form and Single Audit Reporting Package VIEDA Response: The Authority recognizes the importance of timely Single Audit submissions to maintain compliance and low-risk auditee status. Delays in completing the audit process affected the FY2022, FY2023, and FY2024 cycles, and residual timing challenges may impact the FY2025 deadline. However, process improvements including a formal Single Audit calendar, monthly progress monitoring, and cross-training of staff are now in place and are expected to ensure full compliance beginning with the FY2026 audit cycle. Estimated Completion Date: Ongoing Contact: Kelly Thompson Webbe, Chief Financial Officer

Categories

Reporting

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.00M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.36M
11.307 Economic Adjustment Assistance $734,883
21.031 State Small Business Credit Initiative Technical Assistance Grant Program $43,236
15.875 Economic, Social, and Political Development of the Territories $31,708
59.061 State Trade Expansion $3,733