Finding 555907 (2022-001)

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Requirement
L
Questioned Costs
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Year
2022
Accepted
2025-04-24
Audit: 354564
Organization: Bluetide Puerto Rico, INC (PR)

AI Summary

  • Core Issue: BTPR failed to submit the audit report package on time as required by regulations.
  • Impacted Requirements: Submission deadlines are 30 days post-report receipt or nine months after the audit period, whichever is earlier.
  • Recommended Follow-up: Management should implement procedures to ensure timely audits and compliance with submission regulations.

Finding Text

FINDING NO. 2022-001 REPORT SUBMISSION - CRITERIA Report submission (a) General- (1) The audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor's report(s) or nine months after the end of the audit period (whichever is earlier). The cognizant agency for audit or oversight agency for audit (in the absence of a cognizant agency for audit) may authorize an extension when the nine-month timeframe would place an undue burden on the auditee. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. (2) The auditee must make copies available for public inspection unless restricted by Federal statute or regulation. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. PART 200—Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards Subpart F—Audit Requirements 200.512 Report submission. CONDITION Activities Allowed or Unallowed and Allowable Cost/Cost Principles- During our field work we noted that the entity did not comply in submitting the audit report package according to due dates stated in the regulations. EFFECT - BTPR is not in compliance with the according regulations. POTENTIAL EFFECT -The cognizant agency may hold the program funds until receive the corresponding audit report package. QUESTIONED COSTS -$0.00 CAUSE -BTPR was not prepared on a timely basis for the audit and therefore did not send audit package according to regulations. RECOMMENDATION - The management should establish adequate procedures to perform the audit on a timely basis and filed the audit package according to regulations. VIEWS OF RESPONSIBLE OFFICIALS- See the Corrective Action Plan for details of action required.

Corrective Action Plan

Title: Audit Submission and Financial Recovery for Bluetide Puerto Rico Inc. Author: Danixa Rivera-Merced, Executive Director Date: March 3rd,2025 1. Background: • Organization: Bluetide Puerto Rico Inc. Action Plan • Issue: Inability to complete and submit the 2022 audit on time due to delays in reimbursement from the Economic Development Administration (EDA) and subsequent grant suspension. 2. Timeline of Events: • March 2023: o Bluetide Puerto Rico Inc. was awaiting reimbursement from the EDA for over two months. o EDA suspended the grant due to findings, leading to the organization using its operational funds to sustain operations, resulting in a negative budget. • Resolution of Findings: o The executive director, Danixa Rivera-Merced, clarified and resolved the findings. time limit. 3. Current Status: o The EDA reactivated the grant and made the reimbursements, but it was too late to submit the 2022 audit within the original Tel. 787-727-8980 P.O. Box 13832 San Juan, PR 00908 • Bluetide Puerto Rico Inc. is now recovering its financial continuous. • The organization is no longer dependent on federal funds to maintain operations. • The 2022 audit has completed for submission. 4. Action Steps: 1. Audit Submission: o Submit the 2022 audit to the relevant authorities as soon as possible, highlighting the extenuating circumstances that led to the delay. o Ensure all financial documents and evidence of the reimbursement delays and grant suspension are included. 2. Financial Recovery: o Continue to monitor and manage the organization's financial health to ensure sustained recovery. o Implement a robust financial management system to avoid future sole sourced dependencies on federal funds. 3. Future Audits: o Set aside budget and time resources to carryout required financial audits in a timely manner. o Implement a tracking system for grants and reimbursements to avoid future delays. o Ensure all necessary audits are processed as per regulatory requirements. 4. Communication: o Communicate the situation to stakeholders to maintain transparency. o Provide updates on financial recovery and plans for audits and funding management. Tel. 787-727-8980 P.O. Box 13832 San Juan, PR 00908 5. Monitoring and Evaluation: • Quarterly review and assess the progress of the action steps outlined above. • Adjust the plan as necessary to ensure financial stability and compliance with Bluetide Puerto Rico Inc.

Categories

Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
11.307 Economic Adjustment Assistance Program $1.60M