Finding 1240051 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-10-06

AI Summary

  • Core Issue: PRIDCO failed to submit the Data Collection Form and Reporting Package on time for the fiscal year ending June 30, 2025.
  • Impacted Requirements: This non-compliance with 2 CFR § 200.512 could jeopardize future federal funding and affect PRIDCO's risk status for audits.
  • Recommended Follow-Up: PRIDCO should enhance internal controls to ensure timely submissions in line with Uniform Guidance requirements.

Finding Text

FINDING REFERENCE NUMBER 2025-001 FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING TYPE OF FINDING SIGNIFICAN DEFICIENCY CRITERIA 2 CFR § 200.512 Report Submission, (a) (1) 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 auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. STATEMENT OF CONDITION PRIDCO did not submit the Data Collection Form and Reporting Package to the Federal Audit Clearinghouse of fiscal year ending June 30, 2025, during the required period. QUESTIONED COSTS None PERSPECTIVE INFORMATION On January 28, 2026, PRIDCO requested a waiver to US Homeland Security, establishing why the Single Audit might not be issued on or before the due date. Subsequently a follow-up was issued, but no response was received. STATEMENT OF CAUSE PRIDCO was obtaining all required data for the Program ALN 97.036, and validating all required information as the Compliance Supplement 2025 and the Uniform Guidance version of 2024 requires. The Compliance Supplement was issued on November 27, 2025, affecting the timing of the SEFA preparation in accordance with the requirements. POSSIBLE ASSERTED EFFECT PRIDCO did not comply with the submission date required for the Data Collection Form and Reporting Package, this could affect the continuance and new approvals of Federal funds. In addition, for the next two (2) fiscal years PRIDCO cannot be considered by the auditor as a low risk auditee. IDENTIFICATION OF REPEAT FINDING This is a repeat finding (Finding Reference Number 2024-003). RECOMMENDATIONS We recommend PRIDCO to continue in the implementation of internal controls in accordance with the Uniform Guidance.

Corrective Action Plan

VIEWS OF RESPONSIBLE OFFICIALS Management is responsible for designing and maintaining internal controls over financial reporting that is sufficient to provide reasonable assurance that management can prepare the financial statement and the Uniform Guidance Audit Report in conformity with US GAAP and federal regulations. Management will improve accounting and financial reporting policies and procedures to include the timely insurance of the financial statement and the uniform guidance report. IMPLEMENTATION DATE March 31, 2027 RESPONSIBLE PERSON Naelia Cruz Cañals, CFO

Categories

Reporting

Programs in Audit

ALN Program Name Expenditures
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $13.15M
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $692,122