Finding Text
Criteria:
Uniform Administrative Requirements. Cost Principles, and Audit Requirements for Federal Awards. 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 wiithin the earlier of 30 calendar days after receipt of the auditors' report(s). or nine months after the end of the audit period.
Condition:
The Department did not comply with the required due date for the submission of the Single Audit Report Package as a result of-systematic issues which hay e led to delays in the receipt and processing of information required as part of the Single Audit.
Effect:
The Department will be considered delinquent in the submission of the Single Audit Report Package and if it does not respond to follow-up procedures from federal agencies. may face sanctions such as:
• Draw-Down Restrictions
• Reimbursable Draw Down
• Withholding a Percentage of Federal Funds
• Suspension of Federal Funds
• Termination of Grant
Cause:
During March 2020, the government of Puerto Rico declared a general lockdovvn as a result of the COVID-19 Pandemic which had a significant impact in governmental agencies and businesses across Puerto Rico. delaying operations on an island-wide scale. This resulted in significant delays in the completion of the Single audits for the past fiscal periods which in turn has resulted in complications regarding filing within required deadlines.
Recommendation:
The Department must designate work teams amongst all relevant administrations which serve as liaisons vvith auditors and be responsible for the delivery of information and documentation to ensure compliance with due dates. The Department should maintain a clear line of communication throughout its administrations and follow up accordingly to maintain a continuous flow of information during audit procedures. In addition, the Department should request periodic follovv-up meetings with auditors to address any audit issues encountered which may affect meeting established deadlines.
Questioned Costs:
None
Management's Response:
Refer to Grantee's Corrective Action Plan.