Finding 496856 (2022-008)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-09-13
Audit: 319580
Organization: Municipality of Santa Isabel (PR)

AI Summary

  • Core Issue: The Municipality failed to submit the Single Audit Reporting package on time for the fiscal year ending June 30, 2022, violating federal requirements.
  • Impacted Requirements: This finding indicates a significant deficiency in internal control and noncompliance with the Single Audit Act, similar to previous years' issues.
  • Recommended Follow-Up: Management should enhance internal controls over financial reporting to ensure timely submission of future audit reports, with a target date of March 31, 2025, for the next report.

Finding Text

Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) This finding is similar to prior year finding(s) 2021-009, 2020-007 and 2019-007. Statement of Condition The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023, in accordance with Memorandum M-21-20 and the declared major disaster area under the Stafford Act. Criteria Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause of Condition Due to the delay in the preparation of the financial statements, the Municipality did not comply with the requirements established in the Uniform Guidance. Effect of Condition The Municipality could be sanctioned by the Federal government for the noncompliance of this requirement. Recommendation We recommend management to continue strengthening the internal controls over the accounting records to complete in a timely manner the process of preparation of the financial statements of the Municipality. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instruction to the Finance Department staff to submit, in a timely manner, all the required financial information, to our external auditors, to comply with the datelines for the submission of the Single Audit Report for the fiscal year 2023-2024, which is March 31, 2025. Responsible Official: Mr. Johnny Millán Burgos, Finance and Budget Director Implementation Date: March 31, 2025

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 496855 2022-008
    Significant Deficiency Repeat
  • 496857 2022-008
    Significant Deficiency Repeat
  • 496858 2022-008
    Significant Deficiency Repeat
  • 496859 2022-008
    Significant Deficiency Repeat
  • 496860 2022-008
    Significant Deficiency Repeat
  • 1073297 2022-008
    Significant Deficiency Repeat
  • 1073298 2022-008
    Significant Deficiency Repeat
  • 1073299 2022-008
    Significant Deficiency Repeat
  • 1073300 2022-008
    Significant Deficiency Repeat
  • 1073301 2022-008
    Significant Deficiency Repeat
  • 1073302 2022-008
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.38M
97.030 Community Disaster Loans $882,000
93.575 Child Care and Development Block Grant $512,676
21.027 Coronavirus State and Local Fiscal Recovery Funds $364,222
14.871 Section 8 Housing Choice Vouchers $317,981
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $308,147
21.019 Coronavirus Relief Fund $222,936
10.558 Child and Adult Care Food Program $12,090