Finding Text
Finding: 2024-002
Federal Agency: U.S. Department of Housing and Urban Development
Pass-through Agency: N/A
Federal Program Title: All Programs
Assistance Listing Number: N/A
Compliance Requirement: Reporting
Type of Finding: Non-compliance and Significant Deficiency
Responsible Official: Hector Caraballo – Finance Director
Prior year finding: 2023-002
Condition
The Municipality 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.
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.
Context
The Municipality was unable to provide timely the financial statements and related supporting documentation in order to apply required audit procedures.
Cause
Management did not have adequate procedures in place to ensure the timely filing of the single audit reporting package and data collection form to the Federal Audit Clearinghouse.
Effect
The Municipality 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 the Municipality cannot be considered by the auditor as a low-risk auditee.
Questioned costs
Not determined
Recommendation
We recommend the Municipality to maintain adequate accounting records related to the non-federal and federal funds in order to properly prepare the financial statements accurate and in a timely manner. In addition, the Municipality needs to implement adequate internal controls procedures in order to assure that the supporting documentation is available in a timely manner.