Finding Text
Finding Reference: 2025-006 Federal Agency: U.S. Department of Health and Human Services Federal Program Title and ALN: Child Care and Development Block Grant (CCDF Cluster) (ALN 93.575) Compliance Requirement: Reporting – Financial Reporting (L) (MW) Type of finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition: During our audit procedures, we noted that during fiscal year 2024-2025, the Program did not submit the required accumulated expenditure reports within the 15-day reporting deadlines established. In addition, the final financial reports required under the award were not submitted within the 90-day deadline. Criteria Title 2 Code of Federal Regulations (CFR) Sections 200.328 and 200.329 require subrecipients to submit accurate, complete, and timely financial and performance reports in accordance with the terms and conditions of the Federal award. In addition, the subaward agreement and reporting guidelines issued by ACUDEN establish specific deadlines for the submission of required financial reports, including final reports. Cause of Condition: The condition resulted, in part, from resource constraints experienced by the Program during the fiscal year, which affected the timely preparation and submission of required financial reports to ACUDEN. Effect of Condition: The untimely submission of accumulated expenditure reports and final financial reports may impair the pass-through entity's ability to effectively monitor program activities and financial performance on a timely basis and resulted in noncompliance with the reporting requirements established under the award. Recommendation: We recommend that Program management strengthen its procedures for monitoring reporting requirements and deadlines to ensure that all required financial reports, including final reports, are submitted timely in accordance with the terms and conditions of the award. Questioned Costs: None Prior-Year Finding: This is a new finding. View of Responsible Official and Planned Corrective Action Plan: Management established corrective measures immediately upon identifying the deficiency related to the untimely submission of the required reports. The Municipality implemented formal procedures to monitor reporting deadlines and ensure the timely submission of reports required by ACUDEN. Management will continue monitoring compliance with these corrective measures to ensure the timely submission of reports in future periods. Implementation Date: July 1, 2026 Responsible Person Mrs. Mayra Ortiz Arroyo, Finance and Budget Director