Finding Text
Untimely Submission of Report Federal Programs Coronavirus State and Local Fiscal Recovery Funds ALN 21.027 Federal Agency U.S. Department of Treasury (DOT) Compliance Requirement Reporting Finding Type Significant deficiency in Internal Control over Compliance and Other Matter Criteria As required by 2 CFR 200.328 and 31 CFR section 35.4(c) on an annual basis, the Government of Puerto Rico is required to submit a performance report detailing the progress and impact of the use of CSFRF funds. This Recovery Plan Performance Report will include descriptions of the projects funded and information on the performance indicators and objectives of each award, helping local residents understand how their governments are using the substantial resources provided by Coronavirus State and Local Fiscal Recovery Funds program. As per CSFRF Motion Picture and Video Industry in Puerto Rico Program Guidelines, to ensure timely reporting, the Government of Puerto Rico requires the Recipients to adhere to the following reporting frequency: •On a biweekly basis, the recipients will be required to submit financial reports using the reporting template provided by the Program. Upon program close, recipients will be required to submit a comprehensive final financial reconciliation report detailing the use of program funds. Condition: We found that the report that was required to be submitted on 07/05/2024, was submitted late on 07/16/2024 after a notification from AAFAF. Context From a sample of eight (8) performance reports submitted during the fiscal year ended on June 30, 2025, one (1) was filled late. Cause The condition was caused by deficiencies in internal control over compliance. Management did not establish adequate monitoring procedures to ensure required reports were prepared and submitted by the applicable deadlines. Specifically, no formal tracking mechanism or compliance calendar was maintained to monitor reporting due dates. Effect Lack of report submission or a delay on report submission may cause the Government of Puerto Rico to not have updated information to comply with report requirements. Questioned Costs None. Identification as a Repeated Finding This is not a repeat finding from the immediate previous audit. Recommendation We recommend that management strengthen internal controls over the preparation and submission of required reports to ensure compliance with applicable reporting deadlines. Specifically, the Department should establish formal procedures to monitor reporting requirements, including the development of a reporting calendar that identifies all required reports, responsible personnel, and applicable submission deadlines. In addition, management should implement supervisory review and monitoring procedures to verify that reports are prepared timely, reviewed for accuracy, and submitted in accordance with program requirements. The Department should also ensure that personnel responsible for compliance reporting receive adequate training on program reporting requirements and that responsibilities are clearly assigned to promote accountability. Views of responsible officials and planned corrective actions Management of the Department agrees with this finding. Refer to the corrective action plan on pages 114-119.