Finding 1216173 (2022-010)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2026-05-29
Audit: 402648
Organization: Virgin Islands Port Authority (VI)
Auditor: BDO USA PC

AI Summary

  • Core Issue: The Authority submitted a required report without prior approval, indicating a breakdown in review processes.
  • Impacted Requirements: Compliance with U.S. Department of the Treasury reporting standards and internal control regulations under 2 CFR Section 200.303.
  • Recommended Follow-Up: The Authority should update its policies to ensure that all reports are reviewed and approved by an appropriate official before submission.

Finding Text

Finding Number: 2022-010 Prior Year Finding Number: N/A Compliance Requirement: Reporting Program: U.S. Department of the Treasury COVID-19 Coronavirus State and Local Fiscal Recovery Funds ALN: 21.027 Award #: PID000002 Award Year: 10/01/2021- 11/25/2022 Criteria – Each non-Federal entity must file various financial, programmatic, and special reports. Additionally, the requirements necessitate that all submitted reports should be supported by the underlying performance records and presented in accordance with program requirements. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – We reviewed the 1 report required to be submitted during the fiscal year and noted that there was no evidence of approval prior to submission. Cause – It appears that policies and procedures, including review over reporting procedures were not functioning as intended. Effect or Potential Effect – The Authority is not in compliance with the stated provisions and inaccurate information may have been reported to the Federal government. Questioned Costs – None. Context – We tested one report and found one exception as noted in the condition. This is a condition identified per review of the Authority’s compliance with the specified requirements not using a statistically valid sample. Recommendation – We recommend that the Authority reevaluate its policies and procedures to ensure proper monitoring and review of the required reports by an appropriate official who would ensure the information submitted is complete, accurate, consistent, and submitted within the required timeframe. Views of Responsible Officials - The Authority concurs with the auditor’s findings and recommendations. The Authority will implement measures to ensure proper monitoring and review of the required reports by an appropriate official. The planned corrective actions are presented in the Authority’s Corrective Action Plan, which is attached as Appendix B.

Corrective Action Plan

The Authority will retain emails between preparers and reviewers for forms that cannot be signed.

Categories

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 1216167 2022-006
    Material Weakness Repeat
  • 1216168 2022-007
    Material Weakness Repeat
  • 1216169 2022-008
    Material Weakness Repeat
  • 1216170 2022-007
    Material Weakness Repeat
  • 1216171 2022-008
    Material Weakness Repeat
  • 1216172 2022-009
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $12.25M
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $6.81M
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $2.28M
20.933 NATIONAL INFRASTRUCTURE INVESTMENTS $1.97M
97.090 LAW ENFORCEMENT OFFICER REIMBURSEMENT AGREEMENT PROGRAM $204,280
97.072 NATIONAL EXPLOSIVES DETECTION CANINE TEAM PROGRAM $151,500