TALLER EDUCATIVO DE CAGUAS INC.Non-Profit

Finding No. 2024-002 - Late Filing of Single Audit Reporting Package Criteria Uniform Guidance, Section 200.512(a), establishes that the audit must be completed, and the data collection form and reporting package must be submitted, within the earlier of 30 days after receipt of the auditors' reports or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit, or unless restricted by law or regulation. Condition The Organization did not submit the Single Audit reporting package for the year ended December 31, 2024 within the required nine-month deadline. The reporting package was submitted after the regulatory due date. Cause The Organization had been carrying accumulated delays in the issuance of its audited financial statements and Single Audit reporting packages from prior years. During the current period, these pre-existing delays were compounded by health-related circumstances affecting the Executive Director and by a concurrent federal monitoring review of the program. As a small entity with limited administrative and financial personnel, the Organization had constrained capacity to dedicate the time necessary to attend to, prioritize, and complete the audit, which contributed to the late submission of the reporting package. Effect The accumulated backlog from prior years, together with the Executive Director's health situation and the demands of the concurrent federal monitoring, further delayed the preparation and issuance of the financial statements and the Single Audit reporting package. As a result, the Organization was unable to meet the Uniform Guidance deadline, resulting in a noncompliance finding. While no questioned costs were identified, the late filing exposes the Organization to additional oversight from federal agencies and increases the risk of reputational impact. This deficiency in internal control over compliance is considered a significant deficiency. Repeat Finding This condition was also identified in the prior year audit as Finding No. 2023-001 and remains uncorrected. Recommendation The data collection form and Single Audit reporting package should be submitted within the required due dates. Views of Responsible Officials (Management Response) Management acknowledges the late submission of the data collection form and Single Audit reporting package. The delay resulted from a backlog in the issuance of the audited financial statements carried over from prior years, which during the year was further aggravated by health issues affecting the Executive Director and by a concurrent federal monitoring of the program. As a small organization with limited staff, these circumstances reduced the time available to attend to and prioritize the completion of the audit. Management is committed to allocating the necessary resources and establishing a timeline to ensure that the audit is completed and the reporting package is submitted within the required due dates in future periods.

Criteria Uniform Guidance, Part 200.512 (a) established that the audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 days after receipt of the auditor's reports, or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation. The auditee shall make copies available for public inspection. Condition The Data Collection Form and Single Audit reporting package were not submitted within nine (9) months after the end of the audit period. Also did not submit six (6) months beyond the normal due date nor on the extension date. Casuse and Effect Information to complete the financial statements audit procedures was not available within the required period. Data collection form and single audit report were not submitted in a timely manner as required by the Uniform Guidance. Recommendation Data collection from and single audit package shall be submitted within the required due dates Management Response The delay in submitting the data collection form was an extraordinary event, due to the delay of the audited financial statements. There was some actions related to some grants for year ended December 31, 2022 pending of approval by the Grantor Agency.

Criteria Uniform Guidance, Part 200.512 (a) established that the audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 days after receipt of the auditor's reports, or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation. The auditee shall make copies available for public inspection. Condition The Data Collection Form and Single Audit reporting package were not submitted within nine (9) months after the end of the audit period. Also did not submit six (6) months beyond the normal due date nor on the extension date. Casuse and Effect Information to complete the financial statements audit procedures was not available within the required period. Data collection form and single audit report were not submitted in a timely manner as required by the Uniform Guidance. Recommendation Data collection from and single audit package shall be submitted within the required due dates Management Response The delay in submitting the data collection form was an extraordinary event, due to the delay of the audited financial statements. There was some actions related to some grants for year ended December 31, 2022 pending of approval by the Grantor Agency.