Municipality of Guayanilla

The Single Audit Report for the fiscal year ended June 30, 2024, was not issued within nine (9) months after the ended of the audit period. The Data Collection Form and the reporting package were not submitted on a timely basis

We will improve our internal control procedures related to record keeping and adjustments in order to ensure compliance with the March 31 federal requirement.

2023-007

Compliance Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition: The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2022. The due date for this report was no later than March 31, 2023. Criteria:The Single Audit Act, as amended, requires that the audit report must be submitted to the Federal Audit Clearinghouse no later than nine (9) months after the end of the audit period. Cause of Condition: Government entities are in stabilization period to update administrative work and operations and everything that involves the recovery of Puerto Rico. Effect of Condition: The Municipality do not comply with the requirements established on the Uniform Guidance related to the submission of the Reporting Package. Recommendation: The Municipality shall continue strengthening the internal controls over the accounting records in order to comply with the requirements mentioned above. Questioned Costs:None Prior year finding: This finding is similar to prior-year finding 2021-007. View of Responsible Official and Planned Corrective Action Plan: We will improve our internal controls procedures related to record keeping and adjustments in order to ensure compliance with the March 31 federal requirement.

We will improve our internal controls procedures related to record keeping and year adjustments in order to ensure compliance with the March 31 federal requirement. Implementation Date: During the 2023-2024 fiscal year Responsible Persons: Mr. Luis A. Ramos Feliciano Finance Director

2021-007

Finding Reference 2021-007 Federal Programs: All Mayor Programs and Cluster Compliance Requirement: Single Audit Act Type of Finding: Significant Deficiency in Internal Control (SD), Instance of Noncompliance (NC) Statement of Condition: The Municipality did not submit, in a timely manner, to the Federal Audit Clearinghouse, the Single Audit Reporting package for the fiscal year ending on June 30, 2021. The due date for this report was no later than March 31, 2023. 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 of Condition: Government entities are in stabilization period to update administrative work and operations and everything that involves the recovery of Puerto Rico. Effect of Condition: The Municipality do not comply with the requirements established on the Uniform Guidance related to the submission of the Reporting Package. Recommendation: The Municipality shall continue strengthening the internal controls over the accounting records in order to comply with the requirements mentioned above. Questioned Costs: None Prior year finding: No View of Responsible Official and Planned Corrective Action Plan: We will improve our internal controls procedures related to record keeping and adjustments in order to ensure compliance with the March 31 federal requirement. Implementation Date: March 31, 2024 Responsible Person: Mr. Luis A. Ramos Feliciano, Finance Director

We will improve our internal controls procedures related to record keeping and year adjustments in order to ensure compliance with the March 31 federal requirement. Implementation Date: March 31, 2024 Responsible Persons: Mr. Luis A. Ramos Feliciano Finance Director

GSA_MIGRATION

GSA_MIGRATION