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