Finding 574658 (2021-011)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2025-08-26
Audit: 364929
Organization: Virgin Islands Port Authority (VI)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The Authority failed to submit required reports on time and lacked proper review, leading to non-compliance with federal reporting requirements.
  • Impacted Requirements: Reports must be complete, accurate, and submitted according to program guidelines; internal controls are necessary to ensure compliance.
  • Recommended Follow-Up: The Authority should improve its policies and procedures for monitoring and reviewing reports to prevent future compliance issues.

Finding Text

Finding Number: 2021-011 Prior Year Finding Number: 2020-010 Compliance Requirement: Reporting Program: U.S. Department of Transportation National Infrastructure Investments ALN: 20.933 Award #: DTMA91G1600010 Award Year: 02/01/2017 - 03/31/2022 Criteria – Each non-Federal entity must file various financial, programmatic, and special reports. Additionally, the requirements necessitate that all submitted reports should be supported by the underlying performance records and presented in accordance with program requirements. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – We reviewed 7 (2 financial and 5 special reports) out of the 13 (4 financial and 9 special) reports required to be submitted during the fiscal year and noted the following: • 3 special reports were not submitted. • 2 special reports did not contain evidence of review and approval. • 2 special reports were not submitted in a timely manner (22 and 40 days late). Cause – It appears that policies and procedures, including review over reporting procedures were not functioning as intended. Effect or Potential Effect – The Authority is not in compliance with the stated provisions and inaccurate information may have been reported to the Federal government. Failure to submit required reports could result in reduction or disallowance of Federal funding. Questioned Costs – None. Context – We tested a sample of 7 reports and found 5 exceptions as noted in the condition. This is a condition identified per review of the Authority’s compliance with the specified requirements not using a statistically valid sample. Recommendation – We recommend that the Authority reevaluate its policies and procedures to ensure proper monitoring and review of the required reports by an appropriate official who would ensure the information submitted is complete, accurate, consistent, and submitted within the required timeframe. Views of Responsible Officials - The Authority concurs with the auditor’s findings and recommendations. The Authority will implement measures to ensure proper monitoring and review of the required reports by an appropriate official. The planned corrective actions are presented in the Authority’s Corrective Action Plan, which is attached as Appendix B.

Corrective Action Plan

The Authority will continue to make progress in meeting required review processes and submission timelines. For the reports where the necessity of submission is in question, the Authority will consult with its federal partner to obtain a determination.

Categories

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 574651 2021-006
    Material Weakness Repeat
  • 574652 2021-008
    Significant Deficiency Repeat
  • 574653 2021-009
    Material Weakness Repeat
  • 574654 2021-007
    Significant Deficiency
  • 574655 2021-008
    Significant Deficiency Repeat
  • 574656 2021-009
    Material Weakness Repeat
  • 574657 2021-010
    Material Weakness
  • 1151093 2021-006
    Material Weakness Repeat
  • 1151094 2021-008
    Significant Deficiency Repeat
  • 1151095 2021-009
    Material Weakness Repeat
  • 1151096 2021-007
    Significant Deficiency
  • 1151097 2021-008
    Significant Deficiency Repeat
  • 1151098 2021-009
    Material Weakness Repeat
  • 1151099 2021-010
    Material Weakness
  • 1151100 2021-011
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $20.49M
11.307 Economic Adjustment Assistance $9.42M
20.933 National Infrastructure Investments $3.55M
97.090 Law Enforcement Officer Reimbursement Agreement Program $211,021
97.072 National Explosives Detection Canine Team Program $154,358
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $126,623