Finding 540827 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-31

AI Summary

  • Core Issue: The Single Audit reporting package for the fiscal year ended June 30, 2023, was submitted late, on May 6, 2024, instead of by the March 31, 2024 deadline.
  • Impacted Requirements: This delay violates the submission timeline outlined in 2 CRF 200.512, which mandates submission within nine months after the fiscal year-end.
  • Recommended Follow-Up: Management should ensure timely information submission by the Finance Department to meet future deadlines, with a target implementation date of March 31, 2025.

Finding Text

Condition: The Single Audit reporting package, as defined and required in 2 CRF 200.512 for fiscal year ended June 30, 2023, was not submitted timely. Context: Despite the Municipality’s best efforts to provide, on a timely basis, the information needed to complete the audit, data collection form and reporting package according to 2 CRF 200.512, the audit, data collection form and reporting package for the fiscal year ended June 30, 2023 was submitted to the Federal Audit Clearinghouse on May 6, 2024 Criteria: As per 2 CRF 200.512, the audit, data collection form, and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Cause: The Municipality was not able to provide on a timely basis, the information needed to complete the audit for the year ended on June 30, 2023. This situation prevented the submission of the data collection form and reporting package by the due date of March 31, 2024. Effect: Because of the situation described above, the Senate did not comply with the report submission requirement, since the audit was not submitted within nine months after their fiscal period end date. Auditor’s recommendation: Management should continue to fulfill their auditee responsibilities as stated in 2 CRF 200.508 which among other things, require management to prepare appropriate financial statements and provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit and to ensure that subsequent financial reporting packages are submitted timely. View of Responsible officials and corrective actions: Management gave instructions to the Finance Department staff to submit, in a timely manner, all the required information, to our external consultants and to our external auditors, in order to comply with the datelines for the submission of the Single Audit Report. Implementation Date: March 31, 2025 Responsible Person: Mr. Diego Meléndez – Finance Department Director

Corrective Action Plan

Management gave instructions to the Finance Department staff to submit, in a timely manner, all the required information, to our external consultants and to our external auditors, in order to comply with the datelines for the submission of the Single Audit Report. Implementation Date: March 31, 2025 Responsible Person: Mr. Diego Melendez - Finance Department Director

Categories

Reporting

Other Findings in this Audit

  • 540828 2024-002
    Significant Deficiency
  • 1117269 2024-001
    Significant Deficiency
  • 1117270 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.25M
14.871 Section 8 Housing Choice Vouchers $691,081
21.019 Coronavirus Relief Fund $424,400
93.575 Child Care and Development Block Grant $395,206
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $347,993
93.569 Community Services Block Grant $122,875
20.507 Federal Transit Formula Grants $108,430
14.267 Continuum of Care Program $48,944
10.558 Child and Adult Care Food Program $19,231
14.241 Housing Opportunities for Persons with Aids $14,643
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $10,953