Finding Text
FINDING NO. 2024-007 SINGLE AUDIT REPORT Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Federal Financial Assistance Listing 14.228 Community Development Block Grants/State’s Program and Non- Entitlement Grants in Hawaii Federal Award No: B-18-DP-72-0001 Compliance Requirement: Special Tests and Provisions Questioned Costs: None Repeated Finding: Yes Criteria: The subrecipient agreement between the Bank and the Puerto Rico Department of Housing (PRDOH), establishes in the Terms and Conditions Part X. Compliance with Federal Statutes, Regulations and the Terms and Conditions of the Federal Award and Additional PRDOH Requirements, Section P. Single Audit, that the Subrecipient must be audited as required by 2 C.F.R. part 200, subpart F when it is expected that the Subrecipient’s Federal awards expended during the respectively fiscal year equaled or exceeded the threshold set forth in section 200.501 Audit Requirements. The 2 C.F.R 200.501 (a) establishes that non-Federal entity that expends $750,000 or more during the non- Federal entity’s fiscal year in Federal awards must have a single or program-specific audit conducted for that year in accordance with the provisions of this part. The 2 C.F.R 200.512 (a) (1) establishes that 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. Condition and Context: The Single Audit Report of the Bank for the fiscal year ended June 30, 2024, was not submitted on or before March 31, 2025, as required by the Uniform Guidance. The Single Audit related to such period was completed after the 9 months deadline. Cause: Information to complete the financial statements audit procedures was not available within the required period. Effect: Noncompliance with the above-mentioned requirements could lead to administrative actions by the grantor, representing a significant deficiency in internal control over compliance. Recommendation: Data collection form and single audit package shall be submitted within the required due date.