Finding 1179685 (2024-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-03-16
Audit: 392109
Organization: Municipality of Morovis (PR)

AI Summary

  • Issue: The Single Audit Report for FY ending June 30, 2024, was not submitted on time.
  • Trend: Despite OMB-approved waivers, there were delays in submitting the Data Collection Form and reporting package.
  • Follow-up: Ensure timely submission of all audit-related documents to avoid future compliance issues.

Finding Text

The Single Audit Report for the fiscal year ended June 30, 2024 was not issued and submitted to the Federal Audit Clearinghouse within nine (9) months after the end of the audit period. Although, a waivers were approved by the OMB delaying the due date, the Data Collection Form and the reporting package were not submitted on a timely basis.

Corrective Action Plan

To ensure the financial information to complete the Government Wide and Governmental Funds financial statements and Schedule of Expenditures of Federal Awards are available at a timely basis and free of errors, the Municipality has implemented a plan to improve the accounting reconciliation function and correct the financial system accounting balances that had not been in agreement with the financial statements for many previous years, therefore, was required extensive analyses of the information provided by the accounting system that results in significant manual adjusting entries to present accurate financial information in accordance with GAAP. The plan also includes training of current employees, recruiting capable finance personnel, and timely oversight from the Finance Director over the year end reconciliation process and correction of errors. This will improve the flow and accuracy of the financial information and accounting balances being produced by the finance department that in turn will result in time savings and a more effective process of preparation of financial statements that will lead to having them available with enough time to be audited by the corresponding audit firm and be submitted to the federal government in compliance with the March 31 deadline. As mentioned before, part of this lag in accounting and reporting of the financial statements have been caused by the limitation on the personnel to perform accounting and financial reporting tasks on a timely basis due to a series of uncontrollable weather and COVID health factors that required the use of the personnel to address the emergency for the benefit of the community. In September 2022 we suffer a hurricane strike (Hurricane Fiona) that partially affected the working conditions of the municipal employees and their duties assigned. All the municipal employees were assigned also to attend the Fiona effects in the community, delivery of goods, coordination and attending the immediate needs, therefore the municipal efforts were directed to assist in hurricane recovery and address the community needs rather than at focus on administrative duties. Also, we still are working with the work integration of finance and administrative after the COVID Pandemic, we still have some employees that prefer to work on a remote status and part time basis. Part of these conditions had caused some of the delays in recording and submissions, however these are not intentionally situations. Such situations are in process of analysis and improvement taking into consideration the size of the municipality and its actual financial and budgetary resources.

Categories

Reporting

Other Findings in this Audit

  • 1179683 2024-004
    Material Weakness Repeat
  • 1179684 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.99M
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $1.34M
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $1.13M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $360,818
21.019 CORONAVIRUS RELIEF FUND $148,714
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $127,764
10.558 CHILD AND ADULT CARE FOOD PROGRAM $93,994