Audit 315825

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR Part 200 Section 328 established unless otherwise approved by 0MB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information. 2 CFR Part 200 Section 303 states that the entity must be establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal awards. Evaluate and monitor the non-Federal entity's compliance with statutes, regulations and the terms and conditions of Federal awards. Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings. Take reasonable measures to safeguard protected personally identifiable information and other information the Federal awarding agency or pass-through entity designates as sensitive or the non-Federal entity considers sensitive consistent with applicable Federal, State, local, and tribal laws regarding privacy and responsibility over confidentiality. Cause The PRDH has not established effective procedures for the timely filing of the required financial reports. Effect The PRDH is not in compliance with the federal regulations on reporting. The inaccurate and untimely reporting prevents the Federal awarding agency and PRDF's management from monitoring the program financial activities, assessing the achievements of the program, and evaluating the grant award for subsequent years. Questioned Costs None Perspective Information As part of our audit procedures over reporting requirements, we evaluated Federal Financial Reports (SF-425) for the quarter ended on July 31, 2023. The test revealed that the report was not in compliance. Prior Year Audit Finding None Recommendation Management should take appropriate actions to implement internal controls procedures should be enforced to ascertain that required reports are timely filed; otherwise, a waiver or extension of time must be obtained. Views of responsible officials The PRDOH agrees with the finding. Also, for that particular report there was a confusion on the date as to when was need it to be submitted by the federal government. However, we have established procedures to meet the reporting requirements to all federal programs be submitted on time. Responsible Officials Mrs. Sylvianette Luna Anavitate Program Director 787-765-2929 ext. 3121 Mr. Bryan Santos Martinez Financial and Accountant Analyst 787-765-2929 ext. 3361 Estimated Completion Date Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR Part 200 Section 328 established unless otherwise approved by 0MB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information. 2 CFR Part 200 Section 303 states that the entity must be establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal awards. Evaluate and monitor the non-Federal entity's compliance with statutes, regulations and the terms and conditions of Federal awards. Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings. Take reasonable measures to safeguard protected personally identifiable information and other information the Federal awarding agency or pass-through entity designates as sensitive or the non-Federal entity considers sensitive consistent with applicable Federal, State, local, and tribal laws regarding privacy and responsibility over confidentiality. Cause The PRDH has not established effective procedures for the timely filing of the required financial reports. Effect The PRDH is not in compliance with the federal regulations on reporting. The inaccurate and untimely reporting prevents the Federal awarding agency and PRDF's management from monitoring the program financial activities, assessing the achievements of the program, and evaluating the grant award for subsequent years. Questioned Costs None Perspective Information As part of our audit procedures over reporting requirements, we evaluated Federal Financial Reports (SF-425) for the quarter ended on July 31, 2023. The test revealed that the report was not in compliance. Prior Year Audit Finding None Recommendation Management should take appropriate actions to implement internal controls procedures should be enforced to ascertain that required reports are timely filed; otherwise, a waiver or extension of time must be obtained. Views of responsible officials The PRDOH agrees with the finding. Also, for that particular report there was a confusion on the date as to when was need it to be submitted by the federal government. However, we have established procedures to meet the reporting requirements to all federal programs be submitted on time. Responsible Officials Mrs. Sylvianette Luna Anavitate Program Director 787-765-2929 ext. 3121 Mr. Bryan Santos Martinez Financial and Accountant Analyst 787-765-2929 ext. 3361 Estimated Completion Date Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR sections 92.20(a) and (b) (1) to (4) establish that: a) A State must expend and account for grant funds in accordance with State laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub grantees and cost-type contractors, must be enough to, 1. Permit preparation of reports required by this part and the statutes authorizing the grant, and 2. Permit the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of other grantees and sub grantees must meet the following standards: 1. Financial reporting. Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or subgrant. 2. Budget control. Actual expenditures or outlays must be compared with budgeted amounts for each grant or subgrant. Financial information must be related to performance or productivity data, including the development of unit cost information whenever appropriate or specifically required in the grant or subgrant agreement. if unit cost data are required, estimates based on available documentation will be accepted whenever possible. Condition We noted the following deficiencies related to the grant awards B04MC40159, B04MC45241: a. The PRDH does not segregate financial records sufficiently in order to permit the tracing of funds to a level of expenditures adequate to establish that such funds have not been used in violation of the percentage restrictions of the grant award. b. We could not evaluate if the program is in compliance with the established earmarking requirements since the expenses were recorded for each of the award components and not the earmarking activity. Cause This situation occurs because the accounting records currently used by the PRDH do not have a reliable system to account for funds awarded to them. The chart of accounts in the financial system is not sufficiently expanded to account for each of the earmark requirements. Effect The PRDH could exceed the established expenditures limits per activity for the grant award. Noncompliance with the earmarking requirements could lead to significant administrative sanctions by the grantor, including reduction in the amounts to be awarded. It could also be interpreted as a failure to achieve program objectives. Questioned Costs None Perspective Information Finding represents a significant problem. The agency will review internal controls to ensure that comply with federal government requirements. Prior Year Audit Finding 2022-004 Recommendation The PRDH must expand the chart of accounts in order to account for the amounts claimed for administrative expenditures independently. This expansion would permit the tracing of funds to a level of expenditure to establish that such funds have not been used in violation of the restrictions and prohibitions of the program as defined in 42 USC 705(a)(3). Also, payroll expenses must be recorded into each of the corresponding program activities, as follows: a) Preventive and primary care services for children. b) Services for children with special health care needs. Views of Responsible Officials The PRDOH agrees with the finding. PRDOH has fixed the segregation of financial records, we have systems in place within our system People Soft 8.4 in which permit the tracing of funds to a level of the expenditures that will be adequate. PRDOH will implement this system for the proposal of 2024. Also, the same system will be used in the new ERP system by the treasury Department that should be starting by July 2025. Responsible Officials Dr. Manuel Vargas Bernier Mrs. Diana Ferrer Rivera Estimate Date of Completion Program Director Senior Accountant 787-765-2929 ext. 4583 787-765-2929 ext. 4551 Implementation is expected to be completed on or before the end of October 2024.

Criteria SMAs must establish and maintain a program for conducting periodic risk analyses to ensure appropriate and cost-effective safeguards are incorporated into new and exjsting systems. State agencies must perfollTl risk analyses whenever significant system changes occur. SMAs shall review ADP system security installations involved in the administration of HHS programs on a biennial basis. At a minimum the revjews shall include an evaluation of physical and data security operating procedures and personnel practices. The SMA shall maintain reports on its biennial ADP system security reviews, together with pertinent supporting documentation, for HHS on-site reviews (45 CFR section 95.621). Condition The security plan for ADP (Automatic Data Processing) system, including policies and procedmes to address contingency plans in the event of unforeseen interruptions has not been implemented and tested. Cause This situation was primarily caused by the lack of effective internal control over ADP Risk Analysis and System Security Review. Effect Critical business functions may not be resumed on time in case an emergency or disaster causes the ADP system resources to become unable to meet critical processing needs in the event of a short or long-term interruption of service. Questioned Costs None Prior Year Audit Finding 2022-007 Recommendation The State Medical Agency (SMA) should carry-out or contract to perform independent audit no less than once every three years to each Manage Care Organizations to validate the accuracy, truthfulness, and completeness of the financial information submitted, and post the results on its websites. Views of Responsible Officials The DOH disagrees with this finding as they believe the MCO should have received a SOC 1 Type I and Type 2 Report. The DOH has requested this information from the MCO however it has not been provided yet due to the short time frame for gathering the requested information. Responsible Officials Dinorah Collazo Ortiz Felmarie Cruz Morales Marcia Berrios De La Torre Estimated Completion Date Executive Director Fiscal Director Financial Advisor 787-765-2929 ext. 3402 787-765-2929 ext. 6721 787-765-2929 ext. 6746 Implementation is expected to be completed on or before the end of the year 2025.

Criteria SMAs must establish and maintain a program for conducting periodic risk analyses to ensure appropriate and cost-effective safeguards are incorporated into new and exjsting systems. State agencies must perfollTl risk analyses whenever significant system changes occur. SMAs shall review ADP system security installations involved in the administration of HHS programs on a biennial basis. At a minimum the revjews shall include an evaluation of physical and data security operating procedures and personnel practices. The SMA shall maintain reports on its biennial ADP system security reviews, together with pertinent supporting documentation, for HHS on-site reviews (45 CFR section 95.621). Condition The security plan for ADP (Automatic Data Processing) system, including policies and procedmes to address contingency plans in the event of unforeseen interruptions has not been implemented and tested. Cause This situation was primarily caused by the lack of effective internal control over ADP Risk Analysis and System Security Review. Effect Critical business functions may not be resumed on time in case an emergency or disaster causes the ADP system resources to become unable to meet critical processing needs in the event of a short or long-term interruption of service. Questioned Costs None Prior Year Audit Finding 2022-007 Recommendation The State Medical Agency (SMA) should carry-out or contract to perform independent audit no less than once every three years to each Manage Care Organizations to validate the accuracy, truthfulness, and completeness of the financial information submitted, and post the results on its websites. Views of Responsible Officials The DOH disagrees with this finding as they believe the MCO should have received a SOC 1 Type I and Type 2 Report. The DOH has requested this information from the MCO however it has not been provided yet due to the short time frame for gathering the requested information. Responsible Officials Dinorah Collazo Ortiz Felmarie Cruz Morales Marcia Berrios De La Torre Estimated Completion Date Executive Director Fiscal Director Financial Advisor 787-765-2929 ext. 3402 787-765-2929 ext. 6721 787-765-2929 ext. 6746 Implementation is expected to be completed on or before the end of the year 2025.

Criteria SMAs must establish and maintain a program for conducting periodic risk analyses to ensure appropriate and cost-effective safeguards are incorporated into new and exjsting systems. State agencies must perfollTl risk analyses whenever significant system changes occur. SMAs shall review ADP system security installations involved in the administration of HHS programs on a biennial basis. At a minimum the revjews shall include an evaluation of physical and data security operating procedures and personnel practices. The SMA shall maintain reports on its biennial ADP system security reviews, together with pertinent supporting documentation, for HHS on-site reviews (45 CFR section 95.621). Condition The security plan for ADP (Automatic Data Processing) system, including policies and procedmes to address contingency plans in the event of unforeseen interruptions has not been implemented and tested. Cause This situation was primarily caused by the lack of effective internal control over ADP Risk Analysis and System Security Review. Effect Critical business functions may not be resumed on time in case an emergency or disaster causes the ADP system resources to become unable to meet critical processing needs in the event of a short or long-term interruption of service. Questioned Costs None Prior Year Audit Finding 2022-007 Recommendation The State Medical Agency (SMA) should carry-out or contract to perform independent audit no less than once every three years to each Manage Care Organizations to validate the accuracy, truthfulness, and completeness of the financial information submitted, and post the results on its websites. Views of Responsible Officials The DOH disagrees with this finding as they believe the MCO should have received a SOC 1 Type I and Type 2 Report. The DOH has requested this information from the MCO however it has not been provided yet due to the short time frame for gathering the requested information. Responsible Officials Dinorah Collazo Ortiz Felmarie Cruz Morales Marcia Berrios De La Torre Estimated Completion Date Executive Director Fiscal Director Financial Advisor 787-765-2929 ext. 3402 787-765-2929 ext. 6721 787-765-2929 ext. 6746 Implementation is expected to be completed on or before the end of the year 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR, Part 74, Subpart C, Section 74.21; 7 CFR, Part 3016, Subpart C, Section 3016.20 establishes the following: a) A State must expend and account for grant funds in accordance with State Laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to: 1. Allow preparation of reports required by this part and the statutes authorizing the grant, and 2. Allow the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of the grantees and sub-grantees must meet the following standards: 1. Financial reporting - Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant. 2. Accounting records - Grantees and sub-grantees must maintain records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures and income.3. Internal control - Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees and sub-grantees must adequately safeguard all such property and must ensure that it is used solely for authorized purposes. 4. Budget control - Actual expenditures or outlays must be compared with budgeted amounts for each grant or sub-grant. Financia1 information must be related to performance or productivity data including the development of unit cost information whenever appropriate or specifically required in the grant or sub_x0002_grant agreement. If unit cost data are required, estimates based on available documentation will be accepted, whenever possible. s. Source documentation - Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records contract and sub-grant award documents, etc. During our audit procedures for the fiscal year ended June 30, 2023, we noted the following deficiencies related with the accounting procedures and financial reporting practices of the PRDH: a) The PRDH has inappropriate and/or incomplete cut-off procedures, as well as incomplete month-end and year-end reconciliation and closing procedures which prevent the timely processing of adjustments. Many transactions and adjustments are posted months after the applicable closing with a retroactive effect due to delays in the processing of information, especially those related to payroll transactions. b) During our audit procedures related to compliance with the reporting requirements, we noted that the Finance Department does not reconcile on a timely basis the accounting transactions recorded in their system with the ubsidiary ledger and reports prepared by the federal programs administration. Cause PRDH management has not implemented effective internal controls to ensure a reliable accounting system to accurately account for funds administered. Also, is caused by the lack of analysis of financial transactions recorded during the fiscal year and the lack of monitoring and supervision by the PRDH's management. Effect The PRDH is unable to prepare accurate and complete financial reports on a timely basis. Due to significant reconciliation efforts, report may contain significant errors that may pass undetected. Questioned Costs NonePerspective Information Finding represents a significant problem. The Department of Health must plan to improve accounting and financial reporting practices. Prior Year Audit Finding 2022-001 Recommendation PRDH should evaluate their current accounting and financial reporting software to ensure that the PRDH maximizes its use, establishment or revision of policies and procedures, establishment of periodic reconciliation and analysis of accounting transactions and additional training to accounting personnel related to accounting and financial reporting matters, including year-end closing procedures. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented various corrective actions. Regarding Project Costing Module, the PRDOH already has implemented the Travel and Expenses Module, Payment Management System, which integrates with the Account Receivable to streamline revenue records and Payroll Solutions. The effectiveness of these will be observed during the fiscal year 2024-2025. Also, the PRDOH and Central Government are currently working on ERP implementation in all Government Agencies. This new ERP will be in place in the fiscal year 2024-2025. Furthermore, the PRDOH has established control in order for all program to ensure the timely performed reconciliations between the finance office, the federal affair office, this procedure has started since august 2022. In the other hand the State Department of Treasury has begun a series of training with regard the new ERP that will, be in place by October 2024. This new system in order to close the monthly period all programs will need to reconcile first before closing of the period. Responsible Officials Mrs. Velmary Martinez Y ace Finance Director Mrs. Mayra Reyes Accounting Office Supervisor Estimated Completion Date Tel. 787-765-2929 ext. 3291 Tel. 787-765-2929 ext. 3294 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR 200.303 establish that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.430 establishes that the cost of compensation for personnel services is allowable to the extent that it follows an appointment made in accordance with the governmental unit's laws and rules and meets the merit system or other requirements required by federal law, where applicable. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. (i) The Non-Federal entity establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards. Condition a. During our audit, on a sample of sixty (60) personnel files, we observed that the personnel files are not being kept current and in some instances were incomplete. b. The PRDH does not have established written policies and manuals which can define standard internal controls for each program and/ or region of the entity. Cause PRDH has not established an effective internal control designed to ensure the accuracy and completeness of the employee files. Also, the incompleteness of the files may depend on the time that the employee started working in the agency. Effect Due to law and regulation changes, incomplete files may result in inadequate documentation to support compliance with the criteria over management and administration of personnel files. Also, in the case of employees paid with federal funds it may result in cost disallowances for personnel that do not meet the requirements to be employed by the corresponding federal program. Questioned Costs None Perspective Information Finding does not represent a significant problem. The Department has addressed this finding and it's been taking the steps necessary to reduce incidences to a minimum. We selected 60 employee files from the agency. Prior Year Audit Finding 2022-002 Recommendation PRDH should immediately undertake a process to review all personnel files and validate that the minimum requirement documents are appropriately completed and included in each personnel file. Also, the PRDH must update the salary change form in file in order to reflect current salary as stated in the digital information system. Views of Responsible Officials The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee's files for the required documentation that is need it in the files. Responsible Officials Ledo. Luis Rivera Villanueva Mrs. Luz S. Ramos Pedroza Mrs. Maribel Zayas Estimated Completion Date Sec. Auxiliar de Recursos Humanos Specialist Payroll Officer Director 787-765-2929 ext. 4273 787-765-2929 ext. 4273 787-765-2929 ext. 4209 Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR Part 200 Section 328 established unless otherwise approved by 0MB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information. 2 CFR Part 200 Section 303 states that the entity must be establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal awards. Evaluate and monitor the non-Federal entity's compliance with statutes, regulations and the terms and conditions of Federal awards. Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings. Take reasonable measures to safeguard protected personally identifiable information and other information the Federal awarding agency or pass-through entity designates as sensitive or the non-Federal entity considers sensitive consistent with applicable Federal, State, local, and tribal laws regarding privacy and responsibility over confidentiality. Cause The PRDH has not established effective procedures for the timely filing of the required financial reports. Effect The PRDH is not in compliance with the federal regulations on reporting. The inaccurate and untimely reporting prevents the Federal awarding agency and PRDF's management from monitoring the program financial activities, assessing the achievements of the program, and evaluating the grant award for subsequent years. Questioned Costs None Perspective Information As part of our audit procedures over reporting requirements, we evaluated Federal Financial Reports (SF-425) for the quarter ended on July 31, 2023. The test revealed that the report was not in compliance. Prior Year Audit Finding None Recommendation Management should take appropriate actions to implement internal controls procedures should be enforced to ascertain that required reports are timely filed; otherwise, a waiver or extension of time must be obtained. Views of responsible officials The PRDOH agrees with the finding. Also, for that particular report there was a confusion on the date as to when was need it to be submitted by the federal government. However, we have established procedures to meet the reporting requirements to all federal programs be submitted on time. Responsible Officials Mrs. Sylvianette Luna Anavitate Program Director 787-765-2929 ext. 3121 Mr. Bryan Santos Martinez Financial and Accountant Analyst 787-765-2929 ext. 3361 Estimated Completion Date Implementation is expected to be completed on or before the end of October 2024.

Criteria 2 CFR Part 200 Section 328 established unless otherwise approved by 0MB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information. 2 CFR Part 200 Section 303 states that the entity must be establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal awards. Evaluate and monitor the non-Federal entity's compliance with statutes, regulations and the terms and conditions of Federal awards. Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings. Take reasonable measures to safeguard protected personally identifiable information and other information the Federal awarding agency or pass-through entity designates as sensitive or the non-Federal entity considers sensitive consistent with applicable Federal, State, local, and tribal laws regarding privacy and responsibility over confidentiality. Cause The PRDH has not established effective procedures for the timely filing of the required financial reports. Effect The PRDH is not in compliance with the federal regulations on reporting. The inaccurate and untimely reporting prevents the Federal awarding agency and PRDF's management from monitoring the program financial activities, assessing the achievements of the program, and evaluating the grant award for subsequent years. Questioned Costs None Perspective Information As part of our audit procedures over reporting requirements, we evaluated Federal Financial Reports (SF-425) for the quarter ended on July 31, 2023. The test revealed that the report was not in compliance. Prior Year Audit Finding None Recommendation Management should take appropriate actions to implement internal controls procedures should be enforced to ascertain that required reports are timely filed; otherwise, a waiver or extension of time must be obtained. Views of responsible officials The PRDOH agrees with the finding. Also, for that particular report there was a confusion on the date as to when was need it to be submitted by the federal government. However, we have established procedures to meet the reporting requirements to all federal programs be submitted on time. Responsible Officials Mrs. Sylvianette Luna Anavitate Program Director 787-765-2929 ext. 3121 Mr. Bryan Santos Martinez Financial and Accountant Analyst 787-765-2929 ext. 3361 Estimated Completion Date Implementation is expected to be completed on or before the end of October 2024.

Criteria 45 CFR sections 92.20(a) and (b) (1) to (4) establish that: a) A State must expend and account for grant funds in accordance with State laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub grantees and cost-type contractors, must be enough to, 1. Permit preparation of reports required by this part and the statutes authorizing the grant, and 2. Permit the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. b) The financial management systems of other grantees and sub grantees must meet the following standards: 1. Financial reporting. Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or subgrant. 2. Budget control. Actual expenditures or outlays must be compared with budgeted amounts for each grant or subgrant. Financial information must be related to performance or productivity data, including the development of unit cost information whenever appropriate or specifically required in the grant or subgrant agreement. if unit cost data are required, estimates based on available documentation will be accepted whenever possible. Condition We noted the following deficiencies related to the grant awards B04MC40159, B04MC45241: a. The PRDH does not segregate financial records sufficiently in order to permit the tracing of funds to a level of expenditures adequate to establish that such funds have not been used in violation of the percentage restrictions of the grant award. b. We could not evaluate if the program is in compliance with the established earmarking requirements since the expenses were recorded for each of the award components and not the earmarking activity. Cause This situation occurs because the accounting records currently used by the PRDH do not have a reliable system to account for funds awarded to them. The chart of accounts in the financial system is not sufficiently expanded to account for each of the earmark requirements. Effect The PRDH could exceed the established expenditures limits per activity for the grant award. Noncompliance with the earmarking requirements could lead to significant administrative sanctions by the grantor, including reduction in the amounts to be awarded. It could also be interpreted as a failure to achieve program objectives. Questioned Costs None Perspective Information Finding represents a significant problem. The agency will review internal controls to ensure that comply with federal government requirements. Prior Year Audit Finding 2022-004 Recommendation The PRDH must expand the chart of accounts in order to account for the amounts claimed for administrative expenditures independently. This expansion would permit the tracing of funds to a level of expenditure to establish that such funds have not been used in violation of the restrictions and prohibitions of the program as defined in 42 USC 705(a)(3). Also, payroll expenses must be recorded into each of the corresponding program activities, as follows: a) Preventive and primary care services for children. b) Services for children with special health care needs. Views of Responsible Officials The PRDOH agrees with the finding. PRDOH has fixed the segregation of financial records, we have systems in place within our system People Soft 8.4 in which permit the tracing of funds to a level of the expenditures that will be adequate. PRDOH will implement this system for the proposal of 2024. Also, the same system will be used in the new ERP system by the treasury Department that should be starting by July 2025. Responsible Officials Dr. Manuel Vargas Bernier Mrs. Diana Ferrer Rivera Estimate Date of Completion Program Director Senior Accountant 787-765-2929 ext. 4583 787-765-2929 ext. 4551 Implementation is expected to be completed on or before the end of October 2024.

Criteria SMAs must establish and maintain a program for conducting periodic risk analyses to ensure appropriate and cost-effective safeguards are incorporated into new and exjsting systems. State agencies must perfollTl risk analyses whenever significant system changes occur. SMAs shall review ADP system security installations involved in the administration of HHS programs on a biennial basis. At a minimum the revjews shall include an evaluation of physical and data security operating procedures and personnel practices. The SMA shall maintain reports on its biennial ADP system security reviews, together with pertinent supporting documentation, for HHS on-site reviews (45 CFR section 95.621). Condition The security plan for ADP (Automatic Data Processing) system, including policies and procedmes to address contingency plans in the event of unforeseen interruptions has not been implemented and tested. Cause This situation was primarily caused by the lack of effective internal control over ADP Risk Analysis and System Security Review. Effect Critical business functions may not be resumed on time in case an emergency or disaster causes the ADP system resources to become unable to meet critical processing needs in the event of a short or long-term interruption of service. Questioned Costs None Prior Year Audit Finding 2022-007 Recommendation The State Medical Agency (SMA) should carry-out or contract to perform independent audit no less than once every three years to each Manage Care Organizations to validate the accuracy, truthfulness, and completeness of the financial information submitted, and post the results on its websites. Views of Responsible Officials The DOH disagrees with this finding as they believe the MCO should have received a SOC 1 Type I and Type 2 Report. The DOH has requested this information from the MCO however it has not been provided yet due to the short time frame for gathering the requested information. Responsible Officials Dinorah Collazo Ortiz Felmarie Cruz Morales Marcia Berrios De La Torre Estimated Completion Date Executive Director Fiscal Director Financial Advisor 787-765-2929 ext. 3402 787-765-2929 ext. 6721 787-765-2929 ext. 6746 Implementation is expected to be completed on or before the end of the year 2025.

Criteria SMAs must establish and maintain a program for conducting periodic risk analyses to ensure appropriate and cost-effective safeguards are incorporated into new and exjsting systems. State agencies must perfollTl risk analyses whenever significant system changes occur. SMAs shall review ADP system security installations involved in the administration of HHS programs on a biennial basis. At a minimum the revjews shall include an evaluation of physical and data security operating procedures and personnel practices. The SMA shall maintain reports on its biennial ADP system security reviews, together with pertinent supporting documentation, for HHS on-site reviews (45 CFR section 95.621). Condition The security plan for ADP (Automatic Data Processing) system, including policies and procedmes to address contingency plans in the event of unforeseen interruptions has not been implemented and tested. Cause This situation was primarily caused by the lack of effective internal control over ADP Risk Analysis and System Security Review. Effect Critical business functions may not be resumed on time in case an emergency or disaster causes the ADP system resources to become unable to meet critical processing needs in the event of a short or long-term interruption of service. Questioned Costs None Prior Year Audit Finding 2022-007 Recommendation The State Medical Agency (SMA) should carry-out or contract to perform independent audit no less than once every three years to each Manage Care Organizations to validate the accuracy, truthfulness, and completeness of the financial information submitted, and post the results on its websites. Views of Responsible Officials The DOH disagrees with this finding as they believe the MCO should have received a SOC 1 Type I and Type 2 Report. The DOH has requested this information from the MCO however it has not been provided yet due to the short time frame for gathering the requested information. Responsible Officials Dinorah Collazo Ortiz Felmarie Cruz Morales Marcia Berrios De La Torre Estimated Completion Date Executive Director Fiscal Director Financial Advisor 787-765-2929 ext. 3402 787-765-2929 ext. 6721 787-765-2929 ext. 6746 Implementation is expected to be completed on or before the end of the year 2025.

Criteria SMAs must establish and maintain a program for conducting periodic risk analyses to ensure appropriate and cost-effective safeguards are incorporated into new and exjsting systems. State agencies must perfollTl risk analyses whenever significant system changes occur. SMAs shall review ADP system security installations involved in the administration of HHS programs on a biennial basis. At a minimum the revjews shall include an evaluation of physical and data security operating procedures and personnel practices. The SMA shall maintain reports on its biennial ADP system security reviews, together with pertinent supporting documentation, for HHS on-site reviews (45 CFR section 95.621). Condition The security plan for ADP (Automatic Data Processing) system, including policies and procedmes to address contingency plans in the event of unforeseen interruptions has not been implemented and tested. Cause This situation was primarily caused by the lack of effective internal control over ADP Risk Analysis and System Security Review. Effect Critical business functions may not be resumed on time in case an emergency or disaster causes the ADP system resources to become unable to meet critical processing needs in the event of a short or long-term interruption of service. Questioned Costs None Prior Year Audit Finding 2022-007 Recommendation The State Medical Agency (SMA) should carry-out or contract to perform independent audit no less than once every three years to each Manage Care Organizations to validate the accuracy, truthfulness, and completeness of the financial information submitted, and post the results on its websites. Views of Responsible Officials The DOH disagrees with this finding as they believe the MCO should have received a SOC 1 Type I and Type 2 Report. The DOH has requested this information from the MCO however it has not been provided yet due to the short time frame for gathering the requested information. Responsible Officials Dinorah Collazo Ortiz Felmarie Cruz Morales Marcia Berrios De La Torre Estimated Completion Date Executive Director Fiscal Director Financial Advisor 787-765-2929 ext. 3402 787-765-2929 ext. 6721 787-765-2929 ext. 6746 Implementation is expected to be completed on or before the end of the year 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.

Criteria 0MB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal yem·s ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. 0MB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (b) (1) and (2)(B) e tablish that the non-Federal Organization shall transmit the reporting package, which shall include the non_x0002_Federal Organization's financial statements, schedule of expenditures of Federal awards corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504 when the 9-month timeframe would place an undue burden on the non_x0002_Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2023, of the PRDH with due date of March 31, 2024, was ubmitted after the 9 months deadline. The Single Audit related to such a period was completed after the 9 months deadline. Cause The PRDH did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the PRDH in the due date established by the Single Audit Act.Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The agency will accelerate the process to contract auditors to carry out the audit and submit the report on time. Prior Year Audit Finding 2022-008 Recommendations The PRDH shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of PRDH to the Federal Clearinghouse before the 9 months deadline. Also, the PRDH should establish procedures for the monthly and year end closing process to allow enough time for the performance and completion of the required single audit by its external auditors. Views of Responsible Officials PRDOH accepts the finding, due to a misinterpretation on the waiver given by the F AC with regard to Hurricane Fiona, the PRDOH incurred in a delay for the contracting for the 2023 single audit. Currently the Department has accelerated the hiring process of the auditors for 2023 and 2024. The 2023 report is in the final stages of revision. On the other hand, the 2024 report is in the process for the renewal of the contract which is expected to start at the end of August 2024. Responsible Official Hector Stewart Torres Velmary Martinez Y ace Estimated Completion Date Director Federal Programs Division Finance Department Director 787-765-2929 Ext.4871 787-765-2929 Ext.3291 Implementation is expected to be completed on or before the end of March 2025.