INTERCAMBIOS PUERTO RICO, INCNon-Profit

Finding No. 2025-001 – Late filing of data collection form and reporting package Federal Programs ALN 93.243, Substance Abuse and Mental Health Services Projects of Regional and National Significance Name of Federal Agency U.S. Department of Health and Human Resources Category Internal Control over Compliance; Noncompliance; Significant Deficiency Compliance Requirement Reporting Criteria 2 CFR 200.512 (a) (1) establishes that 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. Condition The Organization did not submit the required data collection form and reporting package within the required period by March 31, 2026 (9 months after the end of fiscal year). Cause The Organization did not comply with this requirement since the audit of its financial statements, and accordingly its reporting package and procedures, were not ready to be released by the due date. Such delay was mainly attributed to the Organization having difficulties with its timely monthly closings due to its limited personnel in the area of Accounting and Organizational Funds. Effect Federal grantors were prevented from being informed on a timely basis of the current audits findings, recommendations and corrective action being taken by the Organization. Also there has been a late disclosure about the Organization’s operating results. Consequently, any action, further requirements or request of support from the federal grantor could not be executed on a timely basis or not executed at all. Context The fiscal year 2025 reporting package and Data Collection Form has not been submitted at the required filing deadline. The Single Audit covered $816,063 of Federal expenditure. Identification of repeat finding This is not a repeat finding from previous audits. Questioned Costs None. Recommendation We recommend that management develop and implement a corrective action plan to ensure compliance with federal reporting requirements. Such plan should include: (1) the establishment of formal month-end and year-end closing schedules; (2) assignment of accountability for completion of key financial reporting tasks; (3) periodic monitoring of progress toward audit and reporting deadlines; and (4) an assessment of staffing and training needs within the Accounting and Organizational Funds area to ensure adequate resources are available to support timely financial reporting and Single Audit compliance. Views of responsible officials and planned corrective actions We agreed with the auditors’ finding and recommendation. See further details regarding this matter within the Corrective Action Plan provided on page 27.