Finding Text
FINDING REFERENCE NUMBER 2024-003
FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AWARD NUMBER ALL AWARDS
COMPLIANCE REQUIREMENT REPORTING
TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS
CRITERIA 2 CFR § 200.512 Report Submission, (a) (1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day.
STATEMENT OF CONDITION PRIDCO did not submit the Data Collection Form and Reporting Package to the Federal Audit Clearinghouse of fiscal year ending June 30, 2024, during the required period.
QUESTIONED COSTS None
PERSPECTIVE INFORMATION PRIDCO was unable to provide timely to the Audit Committee of the Board of Directors in accordance with Article VII of the Operational Regulations of the Audit Committee (MA-AUD-003), which required the evaluation of the Draft of the Financial Statements Audit and Single Audit before the issuance of the Management Representation Letter.
STATEMENT OF CAUSE The audit work on the Financial Statements and the Single Audit was completed on March 10, 2025, date of the issuance of the Draft of the Auditors’ Reports thereon. In accordance with PRIDCO's Operational Regulations of the Audit Committee, the Draft of the Auditors' Reports was submitted to the Audit Committee of the Board of Directors for review. As of March 31, 2025, the Audit Committee had not met to consider the Draft and authorize the issuance of the Management Representation Letter. Accordingly, the Reporting Package was not available to be submitted within the required period established to comply with the Federal regulations.
POSSIBLE ASSERTED EFFECT PRIDCO did not comply with the submission date required for the Data Collection Form and Reporting Package, this could affect the continuance and new approvals of Federal funds. In addition, for the next two (2) fiscal years PRIDCO cannot be considered by the auditor as a low-risk auditee.
IDENTIFICATION OF
REPEAT FINDING This is a repeat finding (Finding Reference Number 2023-001).
RECOMMENDATIONS We recommend PRIDCO maintain adequate accounting records related to the non-Federal and Federal funds in order to properly prepare the financial statements accurately and in a timely manner. In addition, PRIDCO needs to implement adequate internal controls procedures in order to ensure that the supporting documentation is available in a timely manner. This provides more time for the Audit Committee of the Board of Directors for evaluation of the Draft and authorizes the issuance of the Management Representation Letter permitting the auditors to issuance their reports and then submit the Reporting Package to the Federal Audit Clearinghouse during the required period.