Finding Text
Finding No. 2022–006 – Audit Requirements for Auditees – Report Submission
Federal Program
ALN 21.019 Coronavirus Relief Fund – COVID – 19
ALN 21.027 Coronavirus State and Local Fiscal Recovery Fund - ARP Act
ALN 93.498 Provider Relief Fund – CARES Act
ALN 97.036 Disaster Grants – Public Assistance (Presidentially Declared Disaster) Program
Name of Federal Agency
U.S. Department of Treasury
U.S. Department of Health and Human Services
U.S Department of Homeland Security
Pass-through Entity
Puerto Rico Department of Treasury
Central Office of Recovery Reconstruction and Resiliency (COR3)
Category
Non-compliance / Significant deficiency in internal controls over compliance
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
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 significantly 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 federal agencies that has granted funds to the Corporation may issue warnings and/or impose penalties to the Corporation. Also, the federal agencies were prevented from the use of accurate reporting data, which is critical for the effective administration of the federal program and for federal agencies’ budgetary policy analysis.
Questioned cost
None.
Context
The Corporation did not comply with the timeframe required to file it’s Uniform Guidance Single Audit Report for the fiscal year ended on June 30, 2022.
Identification of a repeat finding
This is not a repeat finding from immediate previous audit.
Recommendation
We strongly recommend the Corporation to institute policies and procedures that stipulate the specific tasks and the personnel in charge of filing the required reports. Also, the policies and procedures should designate the member of management in charge of monitoring the compliance with the reporting requirements in order to make sure that the Corporation is filing the reports by their respective due dates.
Views of responsible officials and planned corrective actions
The Corporation’s management and responsible officers agree with this finding. Please refer to the corrective action plan section for the Corporation’s response on pages 89 to 98.