Finding 1240654 (2021-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2021
Accepted
2026-10-19
Audit: 415037
Organization: Public Buildings Authority (PR)

AI Summary

  • Core Issue: The single audit report for fiscal year 2020-2021 was not submitted by the required deadline of September 30, 2022.
  • Impacted Requirements: This non-compliance with OMB Uniform Guidance could result in administrative actions and indicates poor management of federal awards.
  • Recommended Follow-Up: Improve internal controls to ensure timely financial reporting and establish a compliance calendar for federal programs.

Finding Text

Criteria: OMB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal years ending after December 25, 2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. Condition: During our audit of June 30, 2021 financial statements, we noted that single audit report for fiscal year 2020-2021 was not submitted by September 30, 2022. Cause: Lack of internal controls over financial reporting to produce financial statements on timely basis to comply with OMB reporting deadlines. Effect: Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Recommendation: To improve, execute and monitor accounting periods end closings as planned in order to get a financial statement on time to comply with the deadlines required. Also, keep track and communication of federal programs compliances with regulatory parties and among Authority responsible departments involve and establish a program deadline calendar. Questioned Costs: NonePerspective of the information: Single audit report was issued after due date. The information was not drawn from a statistical sample. Prior Year Finding: Yes. Management response: Due to government closures that occurred during the pandemic it was impossible to obtain external and internal information to comply with established requirements. Responsible Officer: Mr. José R. González De la Vega Estimated Completion Date: To work it on or before July 2026.

Corrective Action Plan

Due to government closures that occurred during the pandemic it was impossible to obtain external and internal information to comply with established requirements.

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 1240655 2021-003
    Material Weakness Repeat
  • 1240656 2021-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $1.73M
21.019 CORONAVIRUS RELIEF FUND $160,246