Finding 1228586 (2024-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2026-09-01

AI Summary

  • Core Issue: The Economic Development Authority failed to submit its single audit report to the Federal Audit Clearinghouse within the required nine-month period after the fiscal year-end.
  • Impacted Requirements: This non-compliance violates 2 CFR 200.512, which mandates timely submission of audit reports for federal funding.
  • Recommended Follow-Up: Establish a clear audit timeline to ensure future reports are submitted on time, addressing delays caused by personnel transitions.

Finding Text

Compliance Requirement: Special Tests and Revisions – Data Collection Form and Single Audit Reporting Package Program: Disaster Grants – Public Assistance – (Presidentially Declared Disasters) CFDA #: 97.036 Agency: Virgin Islands Territorial Emergency Management Agency Award #: FEMA 4535-DR, FEMA 4340-DR Award Years: 04/27/2021 – 07/31/2027 04/20/2021 – 09/30/2026 04/08/2020 – 08/31/2026 04/26/2021 – 12/31/2025 05/04/2021 – 12/31/2035 06/03/2021 – 09/30/2026 Criteria: 2 CFR 200.512 requires that an entity’s single audit is to be submitted the earlier of thirty days after the receipt of the auditor’s report or nine months after the end of the audit period to the Federal Audit Clearinghouse (FAC). Condition: The Economic Development Authority (the Authority) audited financial statements for the September 30, 2024, year-end was not submitted to the Federal Audit Clearinghouse within the stipulated nine months after year-end. Questioned Costs: $-0- Context: This is a condition identified based on review of Uniform Guidance requirements and the grant agreements. Effect: The project is not in compliance with the reporting compliance of the Office of Management and Budget for non-profit, state and local government entities. Cause: There were transitions in financial personnel, which resulted in delays in the audit process. Recommendation: We recommend that the Authority meet the reporting deadline by establishing an audit timeline to ensure that the reporting package is submitted to the FAC annually within the required timeframe. Views of Responsible Management Official and Corrective Action Plan: Management concurs with finding. See Current Year Corrective Action Plan.

Corrective Action Plan

The Authority recognizes the importance of timely Single Audit submissions to maintain compliance and low-risk auditee status. Delays in completing the audit process affected the FY2024 and FY2025 cycles, and residual timing challenges may impact the FY2026 deadline. To address this matter, the Authority has implemented process improvements including a formal Single Audit calendar, monthly progress monitoring, and cross-training of staff. These measures are intended to support full compliance beginning with the FY2027 audit cycle.

Categories

Reporting Special Tests & Provisions

Programs in Audit

ALN Program Name Expenditures
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $1.36M
59.061 STATE TRADE EXPANSION $188,536
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $118,404
15.904 HISTORIC PRESERVATION FUND GRANTS-IN-AID $117,603
15.875 ECONOMIC, SOCIAL, AND POLITICAL DEVELOPMENT OF THE TERRITORIES $44,313