Finding 375448 (2022-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-03-11
Audit: 294495
Organization: Municipality of Ciales (PR)

AI Summary

  • Issue: The Municipality failed to submit the Data Collection Form and Reporting Package to the Federal Clearinghouse within the required timeframe, missing the nine-month deadline after the fiscal year ended.
  • Impacted Requirements: This non-compliance with 2 CFR § 200.512 could jeopardize future federal funding and affect the Municipality's status as a low-risk auditee for the next two years.
  • Recommended Follow-Up: The Municipality should enhance its financial statement preparation process and establish stronger internal controls to ensure timely availability of necessary documentation.

Finding Text

Condition The Municipality did not submit the Data Collection Form and Reporting Package to the Federal Clearinghouse for the fiscal year ended June 30, 2022, into the following nine months after fiscal year ended, as required. 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. Effect The Municipality did not comply with the submission date required to the Federal Clearinghouse, this could affect the continuance and new approvals of federal programs funds. In addition, the Municipally cannot be considered by the auditor as a low-risk auditee for the next two years. Cause The Municipality was unable to provide timely the financial statements and related supporting documentation in order to apply required audit procedures. Questioned Costs Not determined Recommendation The Municipality should enforce the financial statements preparation process will be on a timely basis. The Municipality needs too, to implement adequate internal controls procedures in order to assure that the supporting documentation is available in a timely manner. Management Response and Corrective Action The Finance Department will implement additional internal controls to manage the financial statement process in a timely manner as recommended.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 375437 2022-002
    Material Weakness
  • 375438 2022-003
    Material Weakness
  • 375439 2022-003
    Material Weakness
  • 375440 2022-003
    Material Weakness
  • 375441 2022-003
    Material Weakness
  • 375442 2022-003
    Material Weakness
  • 375443 2022-003
    Material Weakness
  • 375444 2022-003
    Material Weakness
  • 375445 2022-003
    Material Weakness
  • 375446 2022-003
    Material Weakness
  • 375447 2022-003
    Material Weakness
  • 951879 2022-002
    Material Weakness
  • 951880 2022-003
    Material Weakness
  • 951881 2022-003
    Material Weakness
  • 951882 2022-003
    Material Weakness
  • 951883 2022-003
    Material Weakness
  • 951884 2022-003
    Material Weakness
  • 951885 2022-003
    Material Weakness
  • 951886 2022-003
    Material Weakness
  • 951887 2022-003
    Material Weakness
  • 951888 2022-003
    Material Weakness
  • 951889 2022-003
    Material Weakness
  • 951890 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.575 Child Care and Development Block Grant $539,202
21.019 Coronavirus Relief Fund $375,203
14.871 Section 8 Housing Choice Vouchers $369,325
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $51,401
10.558 Child and Adult Care Food Program $33,988
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $20,277
14.241 Housing Opportunities for Persons with Aids $13,510
21.027 Coronavirus State and Local Fiscal Recovery Funds $5,000
20.205 Highway Planning and Construction $4,770