FAC Explorer

Finding 1216740 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-06-07
Audit: 403186
Organization: Guam Power Authority (GU)
Auditor: ERNST & YOUNG LLP

AI Summary

  • Core Issue: The Authority failed to submit the required federal financial report (SF-425) for a grant by the due date, violating reporting requirements.
  • Impacted Requirements: Non-compliance with 2 CFR 200.302(a) and 2 CFR 200.328(c) regarding financial reporting and management.
  • Recommended Follow-up: Implement stronger monitoring controls to ensure timely submission of financial reports for all grant awards.

Finding Text

Finding No.: 2025-002 Federal Agency: Environmental Protection Agency AL No. and Title: 66.039 Diesel Emission Reduction Act (DERA) National Grants 98T31601 Federal Award No.: Area: Reporting Criteria: 2 CFR 200.302(a) states that each State must expend and account for the Federal award in accordance with State laws and procedures for expending and accounting for the State’s funds. All recipient financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by the terms and conditions; and tracking expenditures to establish that funds have been used in accordance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.328(c) states that recipient must submit financial reports as required by the Federal award. Condition: For one grant award during fiscal year 2025, the Authority did not submit the required federal financial report (SF-425) due on December 30, 2024. Cause: The Authority did not maintain an internal monitoring of financial reports required to be submitted during the fiscal year. Effect or potential effect: The Authority failed to submit the required federal financial report during the year and was not in compliance with applicable reporting requirements. Questioned costs: None Finding No.: 2025-002, continued Federal Agency: Environmental Protection Agency AL No. and Title: 66.039 Diesel Emission Reduction Act (DERA) National Grants 98T31601 Federal Award No.: Area: Reporting Context: The Authority did not submit one of the two required SF-425 during the year ended September 30, 2025. The Authority has not incurred any expenditure as of the report submission due date. Recommendation: The Authority should enforce monitoring controls over compliance with applicable reporting requirements. Responsible personnel should maintain a monitoring of financial reports required to be submitted for each grant award. Views of responsible officials: The Authority agrees to the finding. Refer to the corrective action plan.

Corrective Action Plan

Audit Finding 2025-002 in the area of Reporting An Authority official has been designated to develop and implement standardized processes and record-keeping procedures to ensure that all relevant divisions are informed of grant applications, award terms and conditions, financial responsibilities, and reporting requirements. The Finance Division will continue to provide monthly expenditure reports to assigned grant personnel to support ongoing monitoring, reconciliation, and timely reporting. In addition, a supervisory review will be conducted by the Controller, Assistant Chief Financial Officer, or Chief Financial Officer to verify the completeness, accuracy, and compliance of all submitted financial and programmatic reports. Furthermore, relevant personnel will be notified of and encouraged to participate in grants management training to enhance their understanding of reporting requirements, internal controls, and compliance obligations.

Categories

Reporting

Other Findings in this Audit

  • 1216739 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.039 DIESEL EMISSION REDUCTION ACT (DERA) NATIONAL GRANTS $550,000
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $437,343
15.875 ECONOMIC, SOCIAL, AND POLITICAL DEVELOPMENT OF THE TERRITORIES $141,351
81.008 CYBERSECURITY, ENERGY SECURITY & EMERGENCY RESPONSE (CESER) $62,500