Finding 1168128 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-01-07

AI Summary

  • Core Issue: Instituto Para El Desarrollo Socio Economico y de Vivienda de P.R., Inc. submitted their Single Audit Report 150 days late, violating federal submission deadlines.
  • Impacted Requirements: The late submission puts the organization in noncompliance with 2 CFR §200.512, potentially affecting future federal funding opportunities.
  • Recommended Follow-Up: Implement monitoring procedures, assign specific responsibilities, maintain a compliance calendar, and coordinate with auditors ahead of deadlines to ensure timely submissions.

Finding Text

Criteria: Per 2 CFR §200.512, auditees must submit the reporting package, including the Single Audit Report, to the Federal Audit Clearinghouse (FAC) no later than the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. For the fiscal year ended December 31, 2023, the submission due date was September 30, 2024. Condition: Instituto Para El Desarrollo Socio Economico y de Vivienda de P.R., Inc. submitted the Single Audit Report for the fiscal year ended December 31, 2023, to the FAC on February 27, 2025. This was 150 days past the required due date. Cause: Management did not have adequate procedures in place to ensure timely completion and submission of the Single Audit Report to the FAC. Effect: Late submission of the Single Audit Report places the entity in noncompliance with federal requirements and may impact the organization’s ability to receive future federal funding. Federal agencies rely on timely audit reporting to assess compliance, financial condition, and internal controls of recipients. Questioned Costs: None. Recommendation: We recommend that Instituto Para El Desarrollo Socio Economico y de Vivienda de P.R., Inc. establish and implement monitoring procedures to ensure that all future Single Audit Reports are prepared and submitted to the FAC by the required due date. This should include assigning responsibility to specific personnel, maintaining a compliance calendar, and coordinating with auditors well in advance of deadlines. Management’s Response (unaudited): Management acknowledges the late filing in submission of the December 31, 2023. Single Audit Report. The delay was due to accounting staff delays in receiving and processing the required year end information. Instituto Para El Desarrollo Socio Economico y de Vivienda de P.R., Inc. has taken corrective action by implementing a compliance calendar with key reporting deadlines, assigning responsibility to the Accounting Manager, and scheduling earlier engagement with external accountants and the independent auditors to prevent future in the future.

Corrective Action Plan

Corrective Action Plan For the Year Ended December 31, 2023 Finding Reference Number: 2023-001 Finding Title: Late Submission of Single Audit Report Corrective Action Plan: INDESOVI de P.R., Inc. acknowledges the late filing of the Single Audit Report for the fiscal year ended December 31, 2023. The report was submitted on February 27, 2025, which was 150 days after the required deadline of September 30, 2024. To correct and prevent recurrence of this finding, the following steps have been implemented:  Compliance Calendar: A compliance calendar has been developed and implemented to track all key federal reporting deadlines, including the Single Audit Report due date.  Assignment of Responsibility: The Controller has been designated as responsible for monitoring audit progress and ensuring timely submission of the audit package to the FAC.  Earlier Audit Scheduling: Audit planning and fieldwork will be scheduled earlier in the fiscal year to allow sufficient time for completion of audit procedures and report submission.  Oversight by Management: Senior management will review the compliance calendar quarterly to verify that all reporting requirements are on track for timely completion. Anticipated Completion Date: The corrective action plan has already been implemented as of March 2025.

Categories

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1168112 2024-001
    Material Weakness Repeat
  • 1168113 2024-001
    Material Weakness Repeat
  • 1168114 2024-001
    Material Weakness Repeat
  • 1168115 2024-001
    Material Weakness Repeat
  • 1168116 2024-001
    Material Weakness Repeat
  • 1168117 2024-001
    Material Weakness Repeat
  • 1168118 2024-001
    Material Weakness Repeat
  • 1168119 2024-001
    Material Weakness Repeat
  • 1168120 2024-001
    Material Weakness Repeat
  • 1168121 2024-001
    Material Weakness Repeat
  • 1168122 2024-001
    Material Weakness Repeat
  • 1168123 2024-001
    Material Weakness Repeat
  • 1168124 2024-001
    Material Weakness Repeat
  • 1168125 2024-001
    Material Weakness Repeat
  • 1168126 2024-001
    Material Weakness Repeat
  • 1168127 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
59.072 ECONOMIC INJURY DISASTER LOAN EMERGENCY ADVANCE $2.00M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $407,798
14.252 SECTION 4 CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND AFFORDABLE HOUSING $100,000
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $79,780
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $271