Finding 501812 (2023-006)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-10-04
Audit: 323896
Organization: Municipality of Naranjito (PR)

AI Summary

  • Core Issue: The audit report for the fiscal year ending June 30, 2023, was not submitted within the required nine-month timeframe.
  • Impacted Requirements: This noncompliance with the Single Audit Act could jeopardize federal grants and reflects a significant deficiency in internal controls.
  • Recommended Follow-Up: Implement procedures to ensure timely compliance with federal regulations, with progress monitored by the Finance Director.

Finding Text

Finding Reference 2023-006 Federal Agency and Program: All Federal Programs Identified in the Schedule of Expenditures of Federal Awards Compliance Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Controls (SD), Instance of Noncompliance (NC) Statement of Condition The Single Audit Report for the fiscal year ended June 30, 2023 was not issued within nine (9) months after the end of the audit period. The Data Collection Form and the reporting package were not submitted on a timely basis. Criteria The Single Audit Act, as amended, requires that the audit report must be submitted to the Federal Audit Clearinghouse no later than nine (9) months after the end of the audit period. Cause of Condition The Municipality did not comply with the established regulation as prescribed by the Office of Management and Budget (OMB) CFR Part 200. Effect of Condition The Municipality could lose federal grants due to the noncompliance with the Single Audit Act requirements. Recommendation Procedures should be implemented to ensure that the Agency complies with the established Federal Regulation, as prescribed by OMB CFR Part 200. Questioned Cost None Prior Year Finding Yes. This finding is similar to prior-year finding 2022-003. Views of Responsible Officials and Planned Corrective Action We concur with the finding. The preparation of the financial statements for the fiscal year ending June 30, 2024 has begun. In addition, the progress of the audit will be continuously monitored with the external auditors hired by the Municipality to ensure that they are issued on or before March 30, 2025. Implementation Date: March 31, 2025 Responsible Person: Belinda Álvarez Finance Director

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 501805 2023-003
    Significant Deficiency
  • 501806 2023-004
    Significant Deficiency
  • 501807 2023-004
    Significant Deficiency
  • 501808 2023-005
    Significant Deficiency
  • 501809 2023-006
    Significant Deficiency Repeat
  • 501810 2023-006
    Significant Deficiency Repeat
  • 501811 2023-006
    Significant Deficiency Repeat
  • 501813 2023-006
    Significant Deficiency Repeat
  • 1078247 2023-003
    Significant Deficiency
  • 1078248 2023-004
    Significant Deficiency
  • 1078249 2023-004
    Significant Deficiency
  • 1078250 2023-005
    Significant Deficiency
  • 1078251 2023-006
    Significant Deficiency Repeat
  • 1078252 2023-006
    Significant Deficiency Repeat
  • 1078253 2023-006
    Significant Deficiency Repeat
  • 1078254 2023-006
    Significant Deficiency Repeat
  • 1078255 2023-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $3.71M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.08M
14.871 Section 8 Housing Choice Vouchers $857,479
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $475,847
97.030 Community Disaster Loans $118,686
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $79,902
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $69,470
93.575 Child Care and Development Block Grant $62,106
16.575 Crime Victim Assistance $59,033
93.053 Nutrition Services Incentive Program $51,906
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $39,005
93.569 Community Services Block Grant $24,594
16.710 Public Safety Partnership and Community Policing Grants $21,364
10.558 Child and Adult Care Food Program $13,481
14.231 Emergency Solutions Grant Program $902