Finding Text
Condition - The Single Audit Report for the fiscal year ended June 30, 2021 was not issued and submitted to the Federal Audit Clearinghouse within nine (9) months after the end of the audit period. Although, a waivers were approved by the OMB delaying the due date, the Data Collection Form and the reporting package were not submitted on a timely basis. Criteria - Uniform Guidance, Section 500.512, states that the audit must be completed, and the data collection form and reporting package must be submitted within of earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. The Single Audit Reporting Package, as defined and required in 2 CFR 200 for fiscal year ended June 30, 2021, could not be submitted in a timely manner because of the effects of the COVID-19 pandemic. As further discussed in the Municipality’s Notes to the Basic Financial Statements included in its audited financial statements for the same year, the Municipality’s activities were affected by the Executive Orders issued by the Governor of Puerto Rico, and subsequently a waiver was granted by the OMB through the issuance of Memorandum M-21-20 until September 30, 2022, for period ending June 30, 2021. On September 18, 2022, Puerto Rico was declared a major disaster area under the Stafford Act. Consistent with this declaration and the complications created by Hurricane Fiona, OMB has granted a six-month extension for all single audits that cover recipients in Puerto Rico and have due dates between September 18, 2022 and December 31, 2022. Cause - The Municipality did not comply with the stablished regulation as prescribed in OMB Uniform Guidance and due to the lockdown as a result of COVID-19 pandemic, the Municipality did not have the necessary resources to prepare and submit the reporting package on time. Effect - The Municipality could be sanctioned by Federal Government or Agencies due to the noncompliance with the Single Audit requirements. Recommendation - Procedures should be implemented to ensure that the Municipality complies with the established Federal Regulation, as prescribed by OMB Super Circular Uniform Guidance.