FAC Explorer

Finding 428 (2022-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-10-20
Audit: 905
Organization: Puerto Rico Industrial Development Company (PR)
Auditor: CPA Diaz Martinez Psc

AI Summary

  • Core Issue: PRIDCO lacks sufficient accounting records for both non-Federal and Federal funds.
  • Impacted Requirements: Financial statements may not be prepared accurately or on time due to inadequate records and controls.
  • Recommended Follow-Up: PRIDCO should enhance internal controls and ensure timely availability of supporting documentation.

Finding Text

RECOMMENDATION We recommend PRIDCO maintain adequate accounting records related to the non-Federal and Federal funds in order to properly prepare the financial statements accurately and in a timely manner. In addition, PRIDCO needs to implement adequate internal controls procedures in order to ensure that the supporting documentation is available in a timely manner.

Corrective Action Plan

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 issuance of the financial statement and the uniform guidance report.

Categories

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 576870 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $881,110
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $96,244
21.027 Coronavirus State and Local Fiscal Recovery Funds $15,188