Finding Text
Criteria
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards, Part 200.512, Report Submission, (a) General, (I) states that the audit must be completed,
and the data collection form and reporting package must be submitted within the earlier of 30
calendar days after receipt of the auditors' report(s), or nine months after the end of the audit period.
Condition
The Department did not comply with the required due date for the submission of the Single Audit
Report Package as a result of systematic issues which have led to delays in the receipt and processing
of information required as part of the Single Audit.
Effect
The Department will be considered delinquent in the submission of the Single Audit Report Package
and if it does not respond to follow-up procedures from federal agencies, may face sanctions such
as:
• Draw-Down Restrictions
• Reimbursable Draw Down
• Withholding a Percentage of Federal Funds
• Suspension of Federal Funds
• Termination of Grant
Cause
During March 2020, the government of Puerto Rico declared a general lockdown as a result of the
COVID-19 Pandemic which had a significant impact in governmental agencies and businesses
across Puerto Rico, delaying operations on an island-wide scale. This resulted in significant delays
in the completion of the Single audits for the past fiscal periods which in turn has resulted in
complications regarding filing within required deadlines. In addition, the Department experienced
a high rate of turnover in personnel, in addition to the observations regarding reconciliation of
financial information as mentioned in audit finding 2021-01 and 2021-02, which resulted in
additional efforts to properly organize information, therefor causing significant delays in the flow
of information and completion of the 2021 audit.
Recommendation
The Department must designate work teams amongst all relevant administrations which serve as
liaisons with auditors and be responsible for the delivery of information and documentation to
ensure compliance with due dates. The Department should maintain a clear line of communication
throughout its administrations and follow up accordingly to maintain a continuous flow of
information during audit procedures. In addition, the Department should request periodic follow-up
meetings with auditors to address any audit issues encountered which may affect meeting
established deadlines.
Questioned Costs
None
Management's Response
Refer to Grantee's Corrective Action Plan