Finding 31209 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-08-28

AI Summary

  • Core Issue: The Puerto Rico Department of Justice failed to submit the Data Collection Form and Single Audit reporting package on time, breaching compliance requirements.
  • Impacted Requirements: This noncompliance relates to the Uniform Administrative Requirements, which mandate submission within nine months post-audit period.
  • Recommended Follow-Up: Ensure timely submission of audit reports and data collection forms moving forward, as outlined in the corrective action plan.

Finding Text

Finding Number: 2022-001 Agency: Department of Justice Federal Program: All Major Federal Programs Compliance Requirement: Reporting Category: Significant Deficiency and Noncompliance Criteria Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal, Part 200.512, Report Submission, (a) General, (1) states that the audit must be completed, and the data collection form and reporting package 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. Condition The Data Collection Form and Single Audit reporting package were not submitted within nine (9) months after the end of the audit period. Cause The Puerto Rico Department of Justice did not submit the single audit reports and reporting package for the year ended June 30, 2022, to the Federal Clearinghouse during the required submission deadline period due to experience the aftermath of the Coronavirus Pandemic. Effect Data collection form and single audit reports were not submitted in a timely manner as required by the Uniform Guidance. Prior Year Audit Finding N/A Recommendation Data collection form and single audit package should be submitted within the required due dates. Questioned Costs None Management?s Response Refer to Grantee?s Corrective Action Plan

Corrective Action Plan

Below we break down the Action Plan to address finding 2022-001. We must begin our comments by informing that, on December 28, 2022, the PRDOJ formalized a professional services contract number 2023-000067 with the company Aquino, De Cordova, Alfaro & Co., LLP (Independent Auditors) to carry out the Agency financial audit process for fiscal year 2021-2022. The clause number six of the contract required that the Independent Auditors submitted on or before March 31, 2023, the final Single Audit Report required as part of the audit process. However, the PRDOJ was obliged to extend the term of the contract because the Independent Auditors could not complete the contracted services and render the Single Audit Report within the stipulated term. The Independent Auditors indicated that the delay in the delivery of the Single Audit Report was since the audit process could not be started until the contract was signed and that the information was not received in a timely manner. Despite the reasons stated by the Independent Auditors, the reality is that the Independent Auditors undertook the contractual clauses agreed in the contract and between them, the agreement to submit the final Single Audit on or before March 31, 2023. Pursuant to the provisions of contract number 2023-000067, the administration of the PRDOJ was under the understanding that the Independent Auditors would comply with the delivery term of the SingleAudit Report within the agreed term. In this way, we ensured that we hired a firm that complied with the term to submit the Single Audit Report to the Federal Audit Clearinghouse provided in federal statute 45 CFR sec. 75.512. However, it is not until the end of the month of March that we become aware that the Independent Auditors could not meet the deadline of submitting the Single Audit Report. As a result of this, the PRDOJ had to extend the contract so that the Independent Auditors could complete the Single Audit Report, take internal measures to alleviate and address the delay, and submit the PRDOJ's Single Audit Report for fiscal year 2021 to the Federal Audit Clearinghouse. Under the contextual framework outlined above, we inform our corrective action plan to finding number 2022-01 presented in the Single Audit Report. First, the PRDOJ requested in June several proposals from Independent Auditors to carry out the Agency?s financial audit process for the 2022-2023 fiscal year. Consequently, a firm of Independent Auditors was selected, and we requested all the information and documentation required at the federal and state level to contract with the government. The contract was drafted in July and will soon be signed. In addition, the new contract provides that the Independent Auditor must submit the Single Audit Report to the PRDOJ on or before March 1, 2024. In this way, the PRDOJ will have the Single Audit Report in advance and, in this way, ensure that the document is submitted before March 31, 2024, to the Federal Audit Clearinghouse.This initiative goes hand in hand with the elaboration of a rigorous and meticulous work plan between the PRDOJ and the Independent Auditors with the delivery dates and exchange of information for the preparation of the Single Audit Report. The work plan provides that the audit process will begin as soon as the contract is signed in early August. For its part, the PRDOJ must submit all the required information to the Independent Auditors before the end of December. ? Regarding the internal administrative aspects of the PRDOJ to comply with this corrective action plan, we inform that we have designated an employee of the Agency to ensure that all our dependencies and their directors submit all the information required to the Independent Auditors on time on the stipulated dates. This includes, but is not limited to, all information in the preliminary PBC and any additional information that is required by the Independent Auditors. ? Likewise, this PRDOJ employee will serve as a link between the firm of Independent Auditors and the agencies of the agency that request information and documentation. Lastly, the PRDOJ official will ensure that the Independent Auditors firm submits the Single Audit Report to the Federal Audit Clearinghouse before March 31, 2024.This is a comprehensive corrective action plan that we have prepared in coordination with all the dependencies of the PRDOJ to guarantee faithful compliance with federal statutes.

Categories

Allowable Costs / Cost Principles Reporting Significant Deficiency

Other Findings in this Audit

  • 31210 2022-001
    Significant Deficiency
  • 31211 2022-001
    Significant Deficiency
  • 607651 2022-001
    Significant Deficiency
  • 607652 2022-001
    Significant Deficiency
  • 607653 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
16.575 Crime Victim Assistance $20.54M
16.034 Coronavirus Emergency Supplemental Funding Program $4.89M
16.738 Edward Byrne Memorial Justice Assistance Grant Program $2.79M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.15M
93.775 State Medicaid Fraud Control Units $922,242
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $665,439
16.588 Violence Against Women Formula Grants $378,882
16.576 Crime Victim Compensation $164,664
21.019 Coronavirus Relief Fund $92,636
20.616 National Priority Safety Programs $60,226
16.751 Edward Byrne Memorial Competitive Grant Program $3,242