Finding Text
FINDING REFERENCE NUMBER 2024-010 FEDERAL PROGRAMS ALL MAJOR PROGRAMS AWARD NUMBERS ALL MAJOR PROGRAMS COMPLIANCE REQUIREMENT REPORTING TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR § 200.512 Report Submission, (a) (1) The audit must be completed and the data collection form described in paragraph (b) of this Section and reporting package described in paragraph (c) of this Section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. STATEMENT OF CONDITION The PRDE did not submit the Data Collection Form and Reporting Package to the Federal Audit Clearinghouse of fiscal year ending June 30, 2024 during the required period. QUESTIONED COSTS None PERSPECTIVE INFORMATION The PRDE was unable to provide a timely financial statement and the Schedule of Expenditures of Federal Awards (SEFA), and related supporting documentation in order to apply required audit procedures. STATEMENT OF CAUSE The PRDE did not have an effective accounting system and procedures to assure that the required financial statement and SEFA, and supporting documentation was made available for audit purposes within the required period established to comply with the Federal regulations. POSSIBLE ASSERTED EFFECT The PRDE did not comply with the submission date required for the Data Collection Form and Reporting Package, this could affect the continuance and new approvals of Federal funds. IDENTIFICATION AS A REPEAT FINDING This is a repeat finding (Finding Reference Number 2023-008). RECOMMENDATION We recommend the PRDE maintain adequate accounting records related to the non-Federal and Federal funds in order to properly prepare the financial statement and SEFA accurately, and in a timely manner. In addition, PRDE needs to implement adequate internal controls procedures in order to ensure that the supporting documentation is available in a timely manner. VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the finding. The delay in the submission of the Data Collection Form and Reporting Package to the Federal Audit Clearinghouse for the fiscal year ended June 30, 2024, was primarily due to the timing of the contracting process for the audit firm. To address this issue and ensure full compliance with the federal submission deadlines, PRDE has already completed the contracting process and engaged the external audit firm for the fiscal year 2024-2025. This proactive measure will allow the audit process to begin and be completed within the established timeframe, ensuring that the required reporting package and Data Collection Form are submitted timely to the Federal Audit Clearinghouse. Through this action, PRDE demonstrates its commitment to maintaining compliance with federal audit requirements and improving internal controls over the preparation and submission of financial statements and SEFA schedules. IMPLEMENTATION DATE Current Fiscal Year RESPONSIBLE PERSON Evelyn Rodríguez Cardé Finance Office Director Jullymar Octavianni Vega Subsecretary of Administration