Finding 1228362 (2025-007)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-08-31

AI Summary

  • Core Issue: BGCPR failed to submit the required data collection form and reporting package on time for the year ended June 30, 2025, leading to potential noncompliance.
  • Impacted Requirements: This finding relates to compliance with 2 CFR §200.512 (a) (1), which mandates timely submission of audit-related documents.
  • Recommended Follow-Up: Management should implement a structured reporting calendar, allocate resources for audit preparation, and establish internal checkpoints to ensure future compliance by December 31, 2026.

Finding Text

Federal Program: ALN 10.536 CACFP Training Grants ALN 93.575 Child Care and Development Block Grant (CCDBG) ALN 93.600 Head Start Category: Compliance/Internal control significant deficiency Compliance Requirement: Reporting Criteria: 2 CFR §200.512 (a) (1) establishes that the audit must be completed, and the data collection form and reporting package must be submitted within the earlier 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: BGCPR did not submit the required data collection form and reporting package for the year ended June 30, 2025, within the required period. Cause: BGCPR did not have available the financial information necessary to complete the audit procedures and single audit reporting package. Effect or potential effect: Condition may result in noncompliance with the requirements for Reporting. Recommendation: We recommend management establish calendars to ascertain submission of data collection form and reporting package within the required dates. Identification as a repeat finding: As of June 30, 2024, finding 2024-010 was identified under this condition. This finding is still valid for the year ended June 30, 2025. Views of responsible officials: BGCPR acknowledges that the delay in the preparation and submission of its audited financial statements was influenced by several interrelated factors, primarily stemming from the challenges associated with a transitional period and the unexpected resignation of the Chief Financial Officer (CFO). The absence of a key financial executive during this period significantly impacted on BGCPR’s ability to compile, review, and finalize the required financial documentation in accordance with established timelines. As a result, BGCPR was unable to meet the statutory deadlines for submitting the audited financial statements, including the data collection form and the complete reporting package, thereby resulting in non-compliance with applicable legal and regulatory reporting requirements. Recognizing the importance of timely and accurate financial reporting, BGCPR is committed to implementing corrective measures. These include the development and enforcement of a structured reporting calendar, the allocation of dedicated resources to support audit preparation, and the establishment of internal checkpoints to monitor progress. These actions are intended to ensure that future submissions are completed within the required deadlines, thereby restoring compliance and reinforcing BGCPR’s commitment to transparency and accountability. As a corrective measure, BGCPR will take the following actions: a. Developing and enforcing a structured reporting calendar; b. Allocating dedicated resources to support audit preparation; c. Establishing internal checkpoints to monitor progress and ensure accountability; d. Ensure future submissions meet the required deadlines. Anticipated completion date: December 31, 2026

Corrective Action Plan

BGCPR acknowledges that the delay in the preparation and submission of its audited financial statements was influenced by several interrelated factors, primarily stemming from the challenges associated with a transitional period and the unexpected resignation of the Chief Financial Officer (CFO). The absence of a key financial executive during this period significantly impacted on BGCPR’s ability to compile, review, and finalize the required financial documentation in accordance with established timelines. As a result, BGCPR was unable to meet the statutory deadlines for submitting the audited financial statements, including the data collection form and the complete reporting package, thereby resulting in non-compliance with applicable legal and regulatory reporting requirements. Recognizing the importance of timely and accurate financial reporting, BGCPR is committed to implementing corrective measures. These include the development and enforcement of a structured reporting calendar, the allocation of dedicated resources to support audit preparation, and the establishment of internal checkpoints to monitor progress. These actions are intended to ensure that future submissions are completed within the required deadlines, thereby restoring compliance and reinforcing BGCPR’s commitment to transparency and accountability. As a corrective measure, BGCPR will take the following actions: a. Developing and enforcing a structured reporting calendar; b. Allocating dedicated resources to support audit preparation; c. Establishing internal checkpoints to monitor progress and ensure accountability; d. Ensure future submissions meet the required deadlines. Contact Person: Paul Barrera Carlos Rivera Antonio Rosario Team: Finance Team Anticipated Completion Date: December 31, 2026

Categories

Allowable Costs / Cost Principles Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1228352 2025-006
    Material Weakness Repeat
  • 1228353 2025-006
    Material Weakness Repeat
  • 1228354 2025-006
    Material Weakness Repeat
  • 1228355 2025-006
    Material Weakness Repeat
  • 1228356 2025-007
    Material Weakness Repeat
  • 1228357 2025-007
    Material Weakness Repeat
  • 1228358 2025-007
    Material Weakness Repeat
  • 1228359 2025-007
    Material Weakness Repeat
  • 1228360 2025-007
    Material Weakness Repeat
  • 1228361 2025-007
    Material Weakness Repeat
  • 1228363 2025-008
    Material Weakness Repeat
  • 1228364 2025-008
    Material Weakness Repeat
  • 1228365 2025-008
    Material Weakness Repeat
  • 1228366 2025-009
    Material Weakness Repeat
  • 1228367 2025-009
    Material Weakness Repeat
  • 1228368 2025-010
    Material Weakness Repeat
  • 1228369 2025-010
    Material Weakness Repeat
  • 1228370 2025-010
    Material Weakness Repeat
  • 1228371 2025-010
    Material Weakness Repeat
  • 1228372 2025-011
    Material Weakness Repeat
  • 1228373 2025-011
    Material Weakness Repeat
  • 1228374 2025-012
    Material Weakness Repeat
  • 1228375 2025-012
    Material Weakness Repeat
  • 1228376 2025-013
    Material Weakness Repeat
  • 1228377 2025-013
    Material Weakness Repeat
  • 1228378 2025-013
    Material Weakness Repeat
  • 1228379 2025-013
    Material Weakness Repeat
  • 1228380 2025-013
    Material Weakness Repeat
  • 1228381 2025-014
    Material Weakness Repeat
  • 1228382 2025-014
    Material Weakness Repeat
  • 1228383 2025-014
    Material Weakness Repeat
  • 1228384 2025-014
    Material Weakness Repeat
  • 1228385 2025-015
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $2.97M
84.215J INNOVATIVE APPROACHES TO LITERACY; PROMISE NEIGHBORHOODS; FULL-SERVICE COMMUNITY SCHOOLS; AND CONGRESSIONALLY DIRECTED SPENDING FOR ELEMENTARY AND SECONDARY EDUCATION COMMUNITY PROJECTS $1.29M
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $956,942
14.850 PUBLIC HOUSING OPERATING FUND $925,139
10.536 Child Care and Development Fund (CCDF) Cluster $904,001
93.600 HEAD START $595,042
84.425U EDUCATION STABILIZATION FUND $537,828
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $365,289
17.274 YOUTHBUILD $265,763
84.282 CHARTER SCHOOLS $263,405
10.555 NATIONAL SCHOOL LUNCH PROGRAM $204,666
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $159,152
16.818 CHILDREN EXPOSED TO VIOLENCE $150,950
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $108,012
10.553 SCHOOL BREAKFAST PROGRAM $71,910
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $50,232
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $15,808
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $15,000
16.888 CONSOLIDATED AND TECHNICAL ASSISTANCE GRANT PROGRAM TO ADDRESS CHILDREN AND YOUTH EXPERIENCING DOMESTIC AND SEXUAL VIOLENCE AND ENGAGE MEN AND BOYS AS ALLIES $14,886
16.726 JUVENILE MENTORING PROGRAM $12,437
14.862 INDIAN COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM $6,216
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $355