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Finding No: 2025-005 – Late filing of data collection form and reporting package Federal Programs ALN 20.106, Airport Improvement Program ALN 97.036, Disaster Grants - Public Assistance (Presidentially Declared Disasters) ALN 21.027, Coronavirus State and Local Fiscal Recovery funds Name of Federal Agency U.S. Department of Transportation - Federal Aviation Administration U.S. Department of Homeland Security U.S Department of Treasury Category Internal Control/Compliance; Significant Deficiency Compliance Requirement Reporting Criteria 2 CFR 200.512 (a) (1) establishes that the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditors' report(s), or nine months after the end of the audit period. Condition The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2026 (9 months after the end of fiscal year). Puerto Rico Ports Authority (A Component Unit of the Commonwealth of Puerto Rico) Schedule of Findings and Questioned Costs – (Continued) Year Ended June 30, 2025 - 99 - Part III – Federal Award Findings and Questioned Costs – (continued) Finding No: 2025-005 – Late filing of data collection form and reporting package – (continued) Cause The Authority did not comply with this requirement since the audit of its financial statements, and accordingly its reporting package and procedures, were not ready to be released by the due date. Such delay was mainly attributed to the Authority having difficulties with its timely monthly closings due to its limited personnel in the area of Accounting and Federal Funds Affairs Division. This was enhanced by the early retirement program established under Act No. 80 of August 3, 2020 – “Law for Incentivized Retirement Program and Justice for Our Servants” (Act No. 80) mentioned in findings 2024-003 and 2024-004. Effect Federal grantors were prevented from being informed on a timely basis of the current and previous audits findings, recommendations and corrective action being taken by the Authority. Also there has been a late disclosure about the Authority’s operating results. Consequently, any action, further requirements or request of support from the federal grantor could not be executed on a timely basis or not executed at all. Context The complete audit reporting package including the Data Collection Form, which is an annual requirement, was filed after the corresponding due date. Identification of a repeat finding This is a repeat finding from the immediate previous audit, Finding 2024-005. Questioned costs. None Puerto Rico Ports Authority (A Component Unit of the Commonwealth of Puerto Rico) Schedule of Findings and Questioned Costs – (Continued) Year Ended June 30, 2025 Part III – Federal Award Findings and Questioned Costs – (continued) Finding No: 2025-005 – Late filing of data collection form and reporting package – (continued) Recommendation We recommend to the Authority to establish a reporting and filing schedule with the Federal Affairs Division to review filing of required annual reporting in order to ascertain that all team members be aware of due dates, including any extensions, if applicable. Such scheduling must be shared to the corresponding officials at the central government in charge of providing the necessary financial information to be included as part of the Authority’s financial statements. Also, the Authority should evaluate the necessity of additional personnel in the area of Accounting and Federal Funds Affairs Division. In addition, we recommend management to recruit new personnel to assist in the financial reporting process. Such personnel might come from contracting outsourced third-party providers or hiring new or training current personnel to assist in the financial reporting process. Views of responsible officials and planned corrective actions We agreed with the auditors’ finding and recommendation. See