Finding Text
Finding Reference: 2025-007 Federal Programs: All Mayor Programs and Cluster Compliance Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition: The Single Audit Report for the fiscal year ended June 30, 2025, was not issued within nine (9) months after the ended of the audit period. The Data Collection Form and the reporting package were not submitted on a timely basis. Criteria: 2 CFR, Section 200.512 (a) (1), states that the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor's report or nine months after the end of the audit period (whichever is earlier). Cause of Condition: Due to the delay in the preparation of the financial statements, the Municipality did not comply with the requirements established in the Uniform Guidance. Effect of Condition: The Municipality could be sanctioned by the Federal government and pass-through agencies for the noncompliance of this requirement. Recommendation: We recommend management to continue strengthening the internal controls and procedures over the accounting records in a manner that the Municipality’s process of preparation of the financial statements can be completed within a reasonable period of time. Questioned Costs: None Prior year finding: This is a new finding. View of Responsible Official and Planned Corrective Action Plan: We will improve our internal control procedures related to record keeping and adjustments in order to ensure compliance with the March 31 federal requirement. Implementation Date: During the 2026-2027 fiscal year. Responsible Person: Mrs. Mayra Ortiz Arroyo, Finance and Budget Director