Finding 1225258 (2024-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-07-31
Audit: 408295
Auditor: RSM PUERTO RICO

AI Summary

  • Issue: The Company couldn't provide bi-weekly financial progress reports, hindering compliance assessment.
  • Cause: Key personnel changes led to inadequate procedures for retaining and backing up report data.
  • Recommendation: Implement a system to ensure all reports are properly retained and backed up to avoid future compliance issues.

Finding Text

Condition: The Company was unable to provide evidence of the submitted bi-weekly financial progress reports, which resulted in auditors being unable to examine the reports and conclude on compliance with the reporting requirement. Cause: During the year, there was change in the key personnel in charge of reporting requirements, however, the Company did not perform the procedures needed to ensure that data related to reports submitted by the program were retained and backed up for records. Effect or potential effect: Condition may result in noncompliance with the requirements for reporting and records retention.

Corrective Action Plan

Management enhanced records retention procedures and implemented controls designed to ensure that federal program documentation is properly maintained, retained, and available for audit purposes.

Categories

Reporting

Other Findings in this Audit

  • 1225256 2024-002
    Material Weakness Repeat
  • 1225257 2024-002
    Material Weakness Repeat
  • 1225259 2024-004
    Material Weakness Repeat
  • 1225260 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $8.38M
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $1.29M
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $83,475