Audit 316956

Finding Number: 2023-001 Department: Puerto Rico Office of Management and Budget Federal Program: Coronavirus State and Local Recovery Fund Assistant listing number: 21.027 Grant Number: N/AV Grant Period: July 1, 2022 through June 30, 2023 Compliance Requirement: Reporting Category: Significant Deficiency and noncompliance over federal program Criteria: OMB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that $750,000 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. Condition: Single Audit report for fiscal year 2022-2023 was not submitted by March 31, 2024, as required by regulations. Cause: Missing of internal controls over financial reporting to produce financial statements on timely basis to comply with OMB reporting deadlines. 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. Recommendation: To improve, execute and monitors accounting periods end closings as planned in order to get a financial statement on time to comply with required deadlines. Also, keep track and communication of federal programs compliances with regulatory parties and among Authority responsible departments involve and establish a program deadline calendar. Questioned Costs: None COMMONWEALTH OF PUERTO RICO OFFICE MANAGEMENT AND BUDGET (AN OFFICE OF THE COMMONWEALTH OF PUERTO RICO) SCHEDULE OF FINDINGS AND QUESTIONED COSTS- CONTINUED YEAR ENDED JUNE 30, 2023 Perspective of the information: Single audit report was issued after due date. The information was not drawn from a statistical sample. Prior Year Finding: No Management response: The Office of Management and Budget (OMB) acknowledges the finding and the importance of complying with the OMB Uniform Guidance for single audits. The following actions have been taken and will continue to be implemented to ensure compliance: Contracting External Audit Firms: • Action Taken: OMB has contracted qualified external audit firms to conduct the single audits to ensure compliance with federal requirements. The contract number 2024-000037 for the Single Audit 2023 was signed on August 2, 2023. • Outcome: This measure has resolved the immediate issue of non-compliance by ensuring timely submission of audit reports. Responsible Officer: Mrs. Nivis González Rodriguez Estimated Completion Date: July 2024

Finding Number: 2023-001 Department: Puerto Rico Office of Management and Budget Federal Program: Coronavirus State and Local Recovery Fund Assistant listing number: 21.027 Grant Number: N/AV Grant Period: July 1, 2022 through June 30, 2023 Compliance Requirement: Reporting Category: Significant Deficiency and noncompliance over federal program Criteria: OMB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that $750,000 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. Condition: Single Audit report for fiscal year 2022-2023 was not submitted by March 31, 2024, as required by regulations. Cause: Missing of internal controls over financial reporting to produce financial statements on timely basis to comply with OMB reporting deadlines. 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. Recommendation: To improve, execute and monitors accounting periods end closings as planned in order to get a financial statement on time to comply with required deadlines. Also, keep track and communication of federal programs compliances with regulatory parties and among Authority responsible departments involve and establish a program deadline calendar. Questioned Costs: None COMMONWEALTH OF PUERTO RICO OFFICE MANAGEMENT AND BUDGET (AN OFFICE OF THE COMMONWEALTH OF PUERTO RICO) SCHEDULE OF FINDINGS AND QUESTIONED COSTS- CONTINUED YEAR ENDED JUNE 30, 2023 Perspective of the information: Single audit report was issued after due date. The information was not drawn from a statistical sample. Prior Year Finding: No Management response: The Office of Management and Budget (OMB) acknowledges the finding and the importance of complying with the OMB Uniform Guidance for single audits. The following actions have been taken and will continue to be implemented to ensure compliance: Contracting External Audit Firms: • Action Taken: OMB has contracted qualified external audit firms to conduct the single audits to ensure compliance with federal requirements. The contract number 2024-000037 for the Single Audit 2023 was signed on August 2, 2023. • Outcome: This measure has resolved the immediate issue of non-compliance by ensuring timely submission of audit reports. Responsible Officer: Mrs. Nivis González Rodriguez Estimated Completion Date: July 2024