Finding 58714 (2022-001)

Finding No. 2022-001 Audit Requirements for Auditees ? Report Submission Federal program Drinking Water State Revolving Funds Cluster: ALN 66.468 Capitalization Grants for Drinking Water State Revolving Funds Name of federal agency U.S. Environmental Protection Agency (EPA) Pass-through entity Puerto Rico Department of Health Category Compliance/Internal Control Compliance requirements Other Criteria As required by the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), ? 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 auditors? 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?. Condition found The data collection form and the reporting package for the year ended on June 30, 2022 was not submitted to the Federal Audit Clearinghouse within the timeframe prescribed by the Uniform Guidance. Cause Accounting and reporting processes are being delayed and thus, the information necessary to complete the financial statement audit procedures was not available within the timeframe prescribed by the Uniform Guidance. Effect As a result of this condition, the EPA may issue warnings and/or impose penalties to the Revolving Fund. Also, the EPA was prevented the use of accurate reporting data, which is critical for the effective administration of the federal program and for EPA budgetary policy analysis. Questioned cost None. Context N/A Identification of a repeat finding This is not a repeat finding from the immediate previous audit. Views of responsible officials and planned corrective actions The management of the Revolving Fund agree with this finding. Please refer to the corrective action plan section on page 44. Recommendation The data collection form and single audit package must be submitted within the required due dates. Also, we strongly suggest the accounting department to take the necessary steps to ensure that senior management receives current and accurate financial information on a timely basis. If it is determined that the department is understaffed, steps should be taken to alleviate this problem so that work can remain current without an undue hardship on any one employee. Once up to date, the accounting staff must consistently provide management with the accurate financial reports and information necessary to effectively manage the Revolving Fund?s operations.