Audit 346029

FY End
2023-09-30
Total Expended
$34.97M
Findings
54
Programs
15
Year: 2023 Accepted: 2025-03-13

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
526909 2023-001 Material Weakness Yes L
526910 2023-002 Material Weakness Yes M
526911 2023-001 Material Weakness Yes L
526912 2023-002 Material Weakness Yes M
526913 2023-001 Material Weakness Yes L
526914 2023-002 Material Weakness Yes M
526915 2023-001 Material Weakness Yes L
526916 2023-002 Material Weakness Yes M
526917 2023-001 Material Weakness Yes L
526918 2023-002 Material Weakness Yes M
526919 2023-001 Material Weakness Yes L
526920 2023-001 Material Weakness Yes L
526921 2023-001 Material Weakness Yes L
526922 2023-002 Material Weakness Yes M
526923 2023-001 Material Weakness Yes L
526924 2023-002 Material Weakness Yes M
526925 2023-001 Material Weakness Yes L
526926 2023-001 Material Weakness Yes L
526927 2023-001 Material Weakness Yes L
526928 2023-001 Material Weakness Yes L
526929 2023-001 Material Weakness Yes L
526930 2023-001 Material Weakness Yes L
526931 2023-001 Material Weakness Yes L
526932 2023-001 Material Weakness Yes L
526933 2023-001 Material Weakness Yes L
526934 2023-001 Material Weakness Yes L
526935 2023-001 Material Weakness Yes L
1103351 2023-001 Material Weakness Yes L
1103352 2023-002 Material Weakness Yes M
1103353 2023-001 Material Weakness Yes L
1103354 2023-002 Material Weakness Yes M
1103355 2023-001 Material Weakness Yes L
1103356 2023-002 Material Weakness Yes M
1103357 2023-001 Material Weakness Yes L
1103358 2023-002 Material Weakness Yes M
1103359 2023-001 Material Weakness Yes L
1103360 2023-002 Material Weakness Yes M
1103361 2023-001 Material Weakness Yes L
1103362 2023-001 Material Weakness Yes L
1103363 2023-001 Material Weakness Yes L
1103364 2023-002 Material Weakness Yes M
1103365 2023-001 Material Weakness Yes L
1103366 2023-002 Material Weakness Yes M
1103367 2023-001 Material Weakness Yes L
1103368 2023-001 Material Weakness Yes L
1103369 2023-001 Material Weakness Yes L
1103370 2023-001 Material Weakness Yes L
1103371 2023-001 Material Weakness Yes L
1103372 2023-001 Material Weakness Yes L
1103373 2023-001 Material Weakness Yes L
1103374 2023-001 Material Weakness Yes L
1103375 2023-001 Material Weakness Yes L
1103376 2023-001 Material Weakness Yes L
1103377 2023-001 Material Weakness Yes L

Contacts

Name Title Type
HFX9UH52Z8H1 Miguel A Padilla Vazquez Auditee
7877216121 Fernando Ortiz Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures on the Schedule are reported on the cash basis of accounting. It is drawn primarily from the OAE's internal accounting records, which are the basis of the OAE's Statement of Cash receipts and Disbursements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The OAE did not use the de minimis cost rate since all costs are charged directly to the federal awards. The accompanying Schedule of Expenditures of Federal Awards (Schedule), includes the federal award activity of the OAE under programs of the federal government for the year ended September 30, 2023. The OAE's reporting entity is defined in Note 1 to the financial statement. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and following the cash receipts and cash disbursements basis of accounting. Because the Schedule presents only a selected portion of the operations of the OAE, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the OAE.
Title: SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures on the Schedule are reported on the cash basis of accounting. It is drawn primarily from the OAE's internal accounting records, which are the basis of the OAE's Statement of Cash receipts and Disbursements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The OAE did not use the de minimis cost rate since all costs are charged directly to the federal awards. Expenditures on the Schedule are reported on the cash basis of accounting. It is drawn primarily from the OAE's internal accounting records, which are the basis of the OAE's Statement of Cash receipts and Disbursements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. The titles of federal awards included in the SEFA are presented as described in the Federal Assistance Listing Numbers "ALN".
Title: RELATIONSHIP TO THE FINANCIAL STATEMENT Accounting Policies: Expenditures on the Schedule are reported on the cash basis of accounting. It is drawn primarily from the OAE's internal accounting records, which are the basis of the OAE's Statement of Cash receipts and Disbursements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The OAE did not use the de minimis cost rate since all costs are charged directly to the federal awards. The regulations and guidelines governing the preparation of federal financial reports vary by federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal financial reports do not necessarily agree with the amounts reported in the accompanying schedule, which is prepared on the basis of accounting explained in Note 2. Office of Management and Budget and the Uniform Guidance require that federal financial reports for claims for advances and reimbursements contain information that is supported by the books and records from which the basic financial statements have been prepared. The OAE prepares the federal financial reports and claims for reimbursements primarily based on information from the internal accounting records. Expenditures included in the SEFA amounting to $34,973,078 agree with the amounts included in the accompanying statement of cash receipts and disbursements for purposes of the Federal Financial Assistance.
Title: MATCHING COSTS Accounting Policies: Expenditures on the Schedule are reported on the cash basis of accounting. It is drawn primarily from the OAE's internal accounting records, which are the basis of the OAE's Statement of Cash receipts and Disbursements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The OAE did not use the de minimis cost rate since all costs are charged directly to the federal awards. Matching costs, such as the nonfederal share of certain program costs, are not included in the accompanying Schedule.
Title: LATE SUBMISSION OF THE REPORTING PACKAGE Accounting Policies: Expenditures on the Schedule are reported on the cash basis of accounting. It is drawn primarily from the OAE's internal accounting records, which are the basis of the OAE's Statement of Cash receipts and Disbursements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The OAE did not use the de minimis cost rate since all costs are charged directly to the federal awards. OAE experienced difficulties that caused a late submission of the reporting package to the Federal Audit Clearinghouse for several years. For the year ended September 30, 2023, the OAE is still in the process of regularizing its submission process.
Title: CLUSTER Accounting Policies: Expenditures on the Schedule are reported on the cash basis of accounting. It is drawn primarily from the OAE's internal accounting records, which are the basis of the OAE's Statement of Cash receipts and Disbursements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The OAE did not use the de minimis cost rate since all costs are charged directly to the federal awards. Cluster's programs means federal programs with different Federal ALN that are closely related and have similar compliance requirements. The schedule includes the following clusters:

Finding Details

Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Finding 2023-002: Subrecipient Monitoring Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: 93.044, 93.045, 93.053, 93.052 Program Title: Title III - B Supportive Services and Senior Centers, Title III - C Nutrition Services, Nutrition Services Incentive Program, and Title III - E National Family Caregiver Support Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: 2301PROASS, 2301PROACM, 2301PROANS, 2301PROAFC Name of Federal Agency: U.S. Department of Health and Human Services (HHS) Name of Pass-through Entity: N/A Criteria: 45 CFR Sections 1321.11(b) and 1321.17(f)(9), the State Agency is required to develop policies governing all aspects of programs operated under the State Plan and to monitor their implementation, including assessing performance for quality and effectiveness and specifying data system requirements to collect necessary and appropriate data. The policies developed by the State agency shall address the way the State agency will monitor the performance of all programs and activities initiated under this part for quality and effectiveness. Statement of Condition: OAE requires the monitoring process of 100% of the population of the subrecipients of federal funds, at least once a year. During the year ended September 30, 2023, the OAE distributed federal funds to 118 subrecipients. However, the subrecipients subjected to formal monitoring were only thirteen (13) or 11%. Cause of Condition: For the year ended September 30, 2023, the OAE had inefficient policies and procedures manuals that prevented the full monitoring of all centers. In order to improve efficiency, the OAE subsequently implemented a new risk assessment in April 2024 that will allow the centers to be monitored in a shorter time. Effect of Condition: The failure to monitor subrecipients may lead to inappropriate use of funds by the subrecipients, and the disallowance of such costs by the federal agencies. Questioned Costs: None. Prior year finding: 2022-002 Recommendation: OAE should review the design of the internal policies according to the available resources and modify what is established in the State Plan regarding the monitoring of subrecipients. The monitoring processes should be designed to ensure that the grants were used properly, and all supporting documents were properly assembled and stored. Best practices on subrecipients monitoring should be searched and evaluated for implementation. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 39 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Finding 2023-002: Subrecipient Monitoring Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: 93.044, 93.045, 93.053, 93.052 Program Title: Title III - B Supportive Services and Senior Centers, Title III - C Nutrition Services, Nutrition Services Incentive Program, and Title III - E National Family Caregiver Support Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: 2301PROASS, 2301PROACM, 2301PROANS, 2301PROAFC Name of Federal Agency: U.S. Department of Health and Human Services (HHS) Name of Pass-through Entity: N/A Criteria: 45 CFR Sections 1321.11(b) and 1321.17(f)(9), the State Agency is required to develop policies governing all aspects of programs operated under the State Plan and to monitor their implementation, including assessing performance for quality and effectiveness and specifying data system requirements to collect necessary and appropriate data. The policies developed by the State agency shall address the way the State agency will monitor the performance of all programs and activities initiated under this part for quality and effectiveness. Statement of Condition: OAE requires the monitoring process of 100% of the population of the subrecipients of federal funds, at least once a year. During the year ended September 30, 2023, the OAE distributed federal funds to 118 subrecipients. However, the subrecipients subjected to formal monitoring were only thirteen (13) or 11%. Cause of Condition: For the year ended September 30, 2023, the OAE had inefficient policies and procedures manuals that prevented the full monitoring of all centers. In order to improve efficiency, the OAE subsequently implemented a new risk assessment in April 2024 that will allow the centers to be monitored in a shorter time. Effect of Condition: The failure to monitor subrecipients may lead to inappropriate use of funds by the subrecipients, and the disallowance of such costs by the federal agencies. Questioned Costs: None. Prior year finding: 2022-002 Recommendation: OAE should review the design of the internal policies according to the available resources and modify what is established in the State Plan regarding the monitoring of subrecipients. The monitoring processes should be designed to ensure that the grants were used properly, and all supporting documents were properly assembled and stored. Best practices on subrecipients monitoring should be searched and evaluated for implementation. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 39 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Finding 2023-002: Subrecipient Monitoring Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: 93.044, 93.045, 93.053, 93.052 Program Title: Title III - B Supportive Services and Senior Centers, Title III - C Nutrition Services, Nutrition Services Incentive Program, and Title III - E National Family Caregiver Support Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: 2301PROASS, 2301PROACM, 2301PROANS, 2301PROAFC Name of Federal Agency: U.S. Department of Health and Human Services (HHS) Name of Pass-through Entity: N/A Criteria: 45 CFR Sections 1321.11(b) and 1321.17(f)(9), the State Agency is required to develop policies governing all aspects of programs operated under the State Plan and to monitor their implementation, including assessing performance for quality and effectiveness and specifying data system requirements to collect necessary and appropriate data. The policies developed by the State agency shall address the way the State agency will monitor the performance of all programs and activities initiated under this part for quality and effectiveness. Statement of Condition: OAE requires the monitoring process of 100% of the population of the subrecipients of federal funds, at least once a year. During the year ended September 30, 2023, the OAE distributed federal funds to 118 subrecipients. However, the subrecipients subjected to formal monitoring were only thirteen (13) or 11%. Cause of Condition: For the year ended September 30, 2023, the OAE had inefficient policies and procedures manuals that prevented the full monitoring of all centers. In order to improve efficiency, the OAE subsequently implemented a new risk assessment in April 2024 that will allow the centers to be monitored in a shorter time. Effect of Condition: The failure to monitor subrecipients may lead to inappropriate use of funds by the subrecipients, and the disallowance of such costs by the federal agencies. Questioned Costs: None. Prior year finding: 2022-002 Recommendation: OAE should review the design of the internal policies according to the available resources and modify what is established in the State Plan regarding the monitoring of subrecipients. The monitoring processes should be designed to ensure that the grants were used properly, and all supporting documents were properly assembled and stored. Best practices on subrecipients monitoring should be searched and evaluated for implementation. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 39 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Finding 2023-002: Subrecipient Monitoring Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: 93.044, 93.045, 93.053, 93.052 Program Title: Title III - B Supportive Services and Senior Centers, Title III - C Nutrition Services, Nutrition Services Incentive Program, and Title III - E National Family Caregiver Support Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: 2301PROASS, 2301PROACM, 2301PROANS, 2301PROAFC Name of Federal Agency: U.S. Department of Health and Human Services (HHS) Name of Pass-through Entity: N/A Criteria: 45 CFR Sections 1321.11(b) and 1321.17(f)(9), the State Agency is required to develop policies governing all aspects of programs operated under the State Plan and to monitor their implementation, including assessing performance for quality and effectiveness and specifying data system requirements to collect necessary and appropriate data. The policies developed by the State agency shall address the way the State agency will monitor the performance of all programs and activities initiated under this part for quality and effectiveness. Statement of Condition: OAE requires the monitoring process of 100% of the population of the subrecipients of federal funds, at least once a year. During the year ended September 30, 2023, the OAE distributed federal funds to 118 subrecipients. However, the subrecipients subjected to formal monitoring were only thirteen (13) or 11%. Cause of Condition: For the year ended September 30, 2023, the OAE had inefficient policies and procedures manuals that prevented the full monitoring of all centers. In order to improve efficiency, the OAE subsequently implemented a new risk assessment in April 2024 that will allow the centers to be monitored in a shorter time. Effect of Condition: The failure to monitor subrecipients may lead to inappropriate use of funds by the subrecipients, and the disallowance of such costs by the federal agencies. Questioned Costs: None. Prior year finding: 2022-002 Recommendation: OAE should review the design of the internal policies according to the available resources and modify what is established in the State Plan regarding the monitoring of subrecipients. The monitoring processes should be designed to ensure that the grants were used properly, and all supporting documents were properly assembled and stored. Best practices on subrecipients monitoring should be searched and evaluated for implementation. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 39 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Finding 2023-002: Subrecipient Monitoring Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: 93.044, 93.045, 93.053, 93.052 Program Title: Title III - B Supportive Services and Senior Centers, Title III - C Nutrition Services, Nutrition Services Incentive Program, and Title III - E National Family Caregiver Support Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: 2301PROASS, 2301PROACM, 2301PROANS, 2301PROAFC Name of Federal Agency: U.S. Department of Health and Human Services (HHS) Name of Pass-through Entity: N/A Criteria: 45 CFR Sections 1321.11(b) and 1321.17(f)(9), the State Agency is required to develop policies governing all aspects of programs operated under the State Plan and to monitor their implementation, including assessing performance for quality and effectiveness and specifying data system requirements to collect necessary and appropriate data. The policies developed by the State agency shall address the way the State agency will monitor the performance of all programs and activities initiated under this part for quality and effectiveness. Statement of Condition: OAE requires the monitoring process of 100% of the population of the subrecipients of federal funds, at least once a year. During the year ended September 30, 2023, the OAE distributed federal funds to 118 subrecipients. However, the subrecipients subjected to formal monitoring were only thirteen (13) or 11%. Cause of Condition: For the year ended September 30, 2023, the OAE had inefficient policies and procedures manuals that prevented the full monitoring of all centers. In order to improve efficiency, the OAE subsequently implemented a new risk assessment in April 2024 that will allow the centers to be monitored in a shorter time. Effect of Condition: The failure to monitor subrecipients may lead to inappropriate use of funds by the subrecipients, and the disallowance of such costs by the federal agencies. Questioned Costs: None. Prior year finding: 2022-002 Recommendation: OAE should review the design of the internal policies according to the available resources and modify what is established in the State Plan regarding the monitoring of subrecipients. The monitoring processes should be designed to ensure that the grants were used properly, and all supporting documents were properly assembled and stored. Best practices on subrecipients monitoring should be searched and evaluated for implementation. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 39 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Finding 2023-002: Subrecipient Monitoring Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: 93.044, 93.045, 93.053, 93.052 Program Title: Title III - B Supportive Services and Senior Centers, Title III - C Nutrition Services, Nutrition Services Incentive Program, and Title III - E National Family Caregiver Support Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: 2301PROASS, 2301PROACM, 2301PROANS, 2301PROAFC Name of Federal Agency: U.S. Department of Health and Human Services (HHS) Name of Pass-through Entity: N/A Criteria: 45 CFR Sections 1321.11(b) and 1321.17(f)(9), the State Agency is required to develop policies governing all aspects of programs operated under the State Plan and to monitor their implementation, including assessing performance for quality and effectiveness and specifying data system requirements to collect necessary and appropriate data. The policies developed by the State agency shall address the way the State agency will monitor the performance of all programs and activities initiated under this part for quality and effectiveness. Statement of Condition: OAE requires the monitoring process of 100% of the population of the subrecipients of federal funds, at least once a year. During the year ended September 30, 2023, the OAE distributed federal funds to 118 subrecipients. However, the subrecipients subjected to formal monitoring were only thirteen (13) or 11%. Cause of Condition: For the year ended September 30, 2023, the OAE had inefficient policies and procedures manuals that prevented the full monitoring of all centers. In order to improve efficiency, the OAE subsequently implemented a new risk assessment in April 2024 that will allow the centers to be monitored in a shorter time. Effect of Condition: The failure to monitor subrecipients may lead to inappropriate use of funds by the subrecipients, and the disallowance of such costs by the federal agencies. Questioned Costs: None. Prior year finding: 2022-002 Recommendation: OAE should review the design of the internal policies according to the available resources and modify what is established in the State Plan regarding the monitoring of subrecipients. The monitoring processes should be designed to ensure that the grants were used properly, and all supporting documents were properly assembled and stored. Best practices on subrecipients monitoring should be searched and evaluated for implementation. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 39 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Finding 2023-002: Subrecipient Monitoring Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: 93.044, 93.045, 93.053, 93.052 Program Title: Title III - B Supportive Services and Senior Centers, Title III - C Nutrition Services, Nutrition Services Incentive Program, and Title III - E National Family Caregiver Support Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: 2301PROASS, 2301PROACM, 2301PROANS, 2301PROAFC Name of Federal Agency: U.S. Department of Health and Human Services (HHS) Name of Pass-through Entity: N/A Criteria: 45 CFR Sections 1321.11(b) and 1321.17(f)(9), the State Agency is required to develop policies governing all aspects of programs operated under the State Plan and to monitor their implementation, including assessing performance for quality and effectiveness and specifying data system requirements to collect necessary and appropriate data. The policies developed by the State agency shall address the way the State agency will monitor the performance of all programs and activities initiated under this part for quality and effectiveness. Statement of Condition: OAE requires the monitoring process of 100% of the population of the subrecipients of federal funds, at least once a year. During the year ended September 30, 2023, the OAE distributed federal funds to 118 subrecipients. However, the subrecipients subjected to formal monitoring were only thirteen (13) or 11%. Cause of Condition: For the year ended September 30, 2023, the OAE had inefficient policies and procedures manuals that prevented the full monitoring of all centers. In order to improve efficiency, the OAE subsequently implemented a new risk assessment in April 2024 that will allow the centers to be monitored in a shorter time. Effect of Condition: The failure to monitor subrecipients may lead to inappropriate use of funds by the subrecipients, and the disallowance of such costs by the federal agencies. Questioned Costs: None. Prior year finding: 2022-002 Recommendation: OAE should review the design of the internal policies according to the available resources and modify what is established in the State Plan regarding the monitoring of subrecipients. The monitoring processes should be designed to ensure that the grants were used properly, and all supporting documents were properly assembled and stored. Best practices on subrecipients monitoring should be searched and evaluated for implementation. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 39 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Finding 2023-002: Subrecipient Monitoring Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: 93.044, 93.045, 93.053, 93.052 Program Title: Title III - B Supportive Services and Senior Centers, Title III - C Nutrition Services, Nutrition Services Incentive Program, and Title III - E National Family Caregiver Support Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: 2301PROASS, 2301PROACM, 2301PROANS, 2301PROAFC Name of Federal Agency: U.S. Department of Health and Human Services (HHS) Name of Pass-through Entity: N/A Criteria: 45 CFR Sections 1321.11(b) and 1321.17(f)(9), the State Agency is required to develop policies governing all aspects of programs operated under the State Plan and to monitor their implementation, including assessing performance for quality and effectiveness and specifying data system requirements to collect necessary and appropriate data. The policies developed by the State agency shall address the way the State agency will monitor the performance of all programs and activities initiated under this part for quality and effectiveness. Statement of Condition: OAE requires the monitoring process of 100% of the population of the subrecipients of federal funds, at least once a year. During the year ended September 30, 2023, the OAE distributed federal funds to 118 subrecipients. However, the subrecipients subjected to formal monitoring were only thirteen (13) or 11%. Cause of Condition: For the year ended September 30, 2023, the OAE had inefficient policies and procedures manuals that prevented the full monitoring of all centers. In order to improve efficiency, the OAE subsequently implemented a new risk assessment in April 2024 that will allow the centers to be monitored in a shorter time. Effect of Condition: The failure to monitor subrecipients may lead to inappropriate use of funds by the subrecipients, and the disallowance of such costs by the federal agencies. Questioned Costs: None. Prior year finding: 2022-002 Recommendation: OAE should review the design of the internal policies according to the available resources and modify what is established in the State Plan regarding the monitoring of subrecipients. The monitoring processes should be designed to ensure that the grants were used properly, and all supporting documents were properly assembled and stored. Best practices on subrecipients monitoring should be searched and evaluated for implementation. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 39 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Finding 2023-002: Subrecipient Monitoring Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: 93.044, 93.045, 93.053, 93.052 Program Title: Title III - B Supportive Services and Senior Centers, Title III - C Nutrition Services, Nutrition Services Incentive Program, and Title III - E National Family Caregiver Support Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: 2301PROASS, 2301PROACM, 2301PROANS, 2301PROAFC Name of Federal Agency: U.S. Department of Health and Human Services (HHS) Name of Pass-through Entity: N/A Criteria: 45 CFR Sections 1321.11(b) and 1321.17(f)(9), the State Agency is required to develop policies governing all aspects of programs operated under the State Plan and to monitor their implementation, including assessing performance for quality and effectiveness and specifying data system requirements to collect necessary and appropriate data. The policies developed by the State agency shall address the way the State agency will monitor the performance of all programs and activities initiated under this part for quality and effectiveness. Statement of Condition: OAE requires the monitoring process of 100% of the population of the subrecipients of federal funds, at least once a year. During the year ended September 30, 2023, the OAE distributed federal funds to 118 subrecipients. However, the subrecipients subjected to formal monitoring were only thirteen (13) or 11%. Cause of Condition: For the year ended September 30, 2023, the OAE had inefficient policies and procedures manuals that prevented the full monitoring of all centers. In order to improve efficiency, the OAE subsequently implemented a new risk assessment in April 2024 that will allow the centers to be monitored in a shorter time. Effect of Condition: The failure to monitor subrecipients may lead to inappropriate use of funds by the subrecipients, and the disallowance of such costs by the federal agencies. Questioned Costs: None. Prior year finding: 2022-002 Recommendation: OAE should review the design of the internal policies according to the available resources and modify what is established in the State Plan regarding the monitoring of subrecipients. The monitoring processes should be designed to ensure that the grants were used properly, and all supporting documents were properly assembled and stored. Best practices on subrecipients monitoring should be searched and evaluated for implementation. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 39 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Finding 2023-002: Subrecipient Monitoring Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: 93.044, 93.045, 93.053, 93.052 Program Title: Title III - B Supportive Services and Senior Centers, Title III - C Nutrition Services, Nutrition Services Incentive Program, and Title III - E National Family Caregiver Support Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: 2301PROASS, 2301PROACM, 2301PROANS, 2301PROAFC Name of Federal Agency: U.S. Department of Health and Human Services (HHS) Name of Pass-through Entity: N/A Criteria: 45 CFR Sections 1321.11(b) and 1321.17(f)(9), the State Agency is required to develop policies governing all aspects of programs operated under the State Plan and to monitor their implementation, including assessing performance for quality and effectiveness and specifying data system requirements to collect necessary and appropriate data. The policies developed by the State agency shall address the way the State agency will monitor the performance of all programs and activities initiated under this part for quality and effectiveness. Statement of Condition: OAE requires the monitoring process of 100% of the population of the subrecipients of federal funds, at least once a year. During the year ended September 30, 2023, the OAE distributed federal funds to 118 subrecipients. However, the subrecipients subjected to formal monitoring were only thirteen (13) or 11%. Cause of Condition: For the year ended September 30, 2023, the OAE had inefficient policies and procedures manuals that prevented the full monitoring of all centers. In order to improve efficiency, the OAE subsequently implemented a new risk assessment in April 2024 that will allow the centers to be monitored in a shorter time. Effect of Condition: The failure to monitor subrecipients may lead to inappropriate use of funds by the subrecipients, and the disallowance of such costs by the federal agencies. Questioned Costs: None. Prior year finding: 2022-002 Recommendation: OAE should review the design of the internal policies according to the available resources and modify what is established in the State Plan regarding the monitoring of subrecipients. The monitoring processes should be designed to ensure that the grants were used properly, and all supporting documents were properly assembled and stored. Best practices on subrecipients monitoring should be searched and evaluated for implementation. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 39 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Finding 2023-002: Subrecipient Monitoring Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: 93.044, 93.045, 93.053, 93.052 Program Title: Title III - B Supportive Services and Senior Centers, Title III - C Nutrition Services, Nutrition Services Incentive Program, and Title III - E National Family Caregiver Support Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: 2301PROASS, 2301PROACM, 2301PROANS, 2301PROAFC Name of Federal Agency: U.S. Department of Health and Human Services (HHS) Name of Pass-through Entity: N/A Criteria: 45 CFR Sections 1321.11(b) and 1321.17(f)(9), the State Agency is required to develop policies governing all aspects of programs operated under the State Plan and to monitor their implementation, including assessing performance for quality and effectiveness and specifying data system requirements to collect necessary and appropriate data. The policies developed by the State agency shall address the way the State agency will monitor the performance of all programs and activities initiated under this part for quality and effectiveness. Statement of Condition: OAE requires the monitoring process of 100% of the population of the subrecipients of federal funds, at least once a year. During the year ended September 30, 2023, the OAE distributed federal funds to 118 subrecipients. However, the subrecipients subjected to formal monitoring were only thirteen (13) or 11%. Cause of Condition: For the year ended September 30, 2023, the OAE had inefficient policies and procedures manuals that prevented the full monitoring of all centers. In order to improve efficiency, the OAE subsequently implemented a new risk assessment in April 2024 that will allow the centers to be monitored in a shorter time. Effect of Condition: The failure to monitor subrecipients may lead to inappropriate use of funds by the subrecipients, and the disallowance of such costs by the federal agencies. Questioned Costs: None. Prior year finding: 2022-002 Recommendation: OAE should review the design of the internal policies according to the available resources and modify what is established in the State Plan regarding the monitoring of subrecipients. The monitoring processes should be designed to ensure that the grants were used properly, and all supporting documents were properly assembled and stored. Best practices on subrecipients monitoring should be searched and evaluated for implementation. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 39 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Finding 2023-002: Subrecipient Monitoring Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: 93.044, 93.045, 93.053, 93.052 Program Title: Title III - B Supportive Services and Senior Centers, Title III - C Nutrition Services, Nutrition Services Incentive Program, and Title III - E National Family Caregiver Support Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: 2301PROASS, 2301PROACM, 2301PROANS, 2301PROAFC Name of Federal Agency: U.S. Department of Health and Human Services (HHS) Name of Pass-through Entity: N/A Criteria: 45 CFR Sections 1321.11(b) and 1321.17(f)(9), the State Agency is required to develop policies governing all aspects of programs operated under the State Plan and to monitor their implementation, including assessing performance for quality and effectiveness and specifying data system requirements to collect necessary and appropriate data. The policies developed by the State agency shall address the way the State agency will monitor the performance of all programs and activities initiated under this part for quality and effectiveness. Statement of Condition: OAE requires the monitoring process of 100% of the population of the subrecipients of federal funds, at least once a year. During the year ended September 30, 2023, the OAE distributed federal funds to 118 subrecipients. However, the subrecipients subjected to formal monitoring were only thirteen (13) or 11%. Cause of Condition: For the year ended September 30, 2023, the OAE had inefficient policies and procedures manuals that prevented the full monitoring of all centers. In order to improve efficiency, the OAE subsequently implemented a new risk assessment in April 2024 that will allow the centers to be monitored in a shorter time. Effect of Condition: The failure to monitor subrecipients may lead to inappropriate use of funds by the subrecipients, and the disallowance of such costs by the federal agencies. Questioned Costs: None. Prior year finding: 2022-002 Recommendation: OAE should review the design of the internal policies according to the available resources and modify what is established in the State Plan regarding the monitoring of subrecipients. The monitoring processes should be designed to ensure that the grants were used properly, and all supporting documents were properly assembled and stored. Best practices on subrecipients monitoring should be searched and evaluated for implementation. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 39 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Finding 2023-002: Subrecipient Monitoring Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: 93.044, 93.045, 93.053, 93.052 Program Title: Title III - B Supportive Services and Senior Centers, Title III - C Nutrition Services, Nutrition Services Incentive Program, and Title III - E National Family Caregiver Support Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: 2301PROASS, 2301PROACM, 2301PROANS, 2301PROAFC Name of Federal Agency: U.S. Department of Health and Human Services (HHS) Name of Pass-through Entity: N/A Criteria: 45 CFR Sections 1321.11(b) and 1321.17(f)(9), the State Agency is required to develop policies governing all aspects of programs operated under the State Plan and to monitor their implementation, including assessing performance for quality and effectiveness and specifying data system requirements to collect necessary and appropriate data. The policies developed by the State agency shall address the way the State agency will monitor the performance of all programs and activities initiated under this part for quality and effectiveness. Statement of Condition: OAE requires the monitoring process of 100% of the population of the subrecipients of federal funds, at least once a year. During the year ended September 30, 2023, the OAE distributed federal funds to 118 subrecipients. However, the subrecipients subjected to formal monitoring were only thirteen (13) or 11%. Cause of Condition: For the year ended September 30, 2023, the OAE had inefficient policies and procedures manuals that prevented the full monitoring of all centers. In order to improve efficiency, the OAE subsequently implemented a new risk assessment in April 2024 that will allow the centers to be monitored in a shorter time. Effect of Condition: The failure to monitor subrecipients may lead to inappropriate use of funds by the subrecipients, and the disallowance of such costs by the federal agencies. Questioned Costs: None. Prior year finding: 2022-002 Recommendation: OAE should review the design of the internal policies according to the available resources and modify what is established in the State Plan regarding the monitoring of subrecipients. The monitoring processes should be designed to ensure that the grants were used properly, and all supporting documents were properly assembled and stored. Best practices on subrecipients monitoring should be searched and evaluated for implementation. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 39 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Finding 2023-002: Subrecipient Monitoring Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: 93.044, 93.045, 93.053, 93.052 Program Title: Title III - B Supportive Services and Senior Centers, Title III - C Nutrition Services, Nutrition Services Incentive Program, and Title III - E National Family Caregiver Support Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: 2301PROASS, 2301PROACM, 2301PROANS, 2301PROAFC Name of Federal Agency: U.S. Department of Health and Human Services (HHS) Name of Pass-through Entity: N/A Criteria: 45 CFR Sections 1321.11(b) and 1321.17(f)(9), the State Agency is required to develop policies governing all aspects of programs operated under the State Plan and to monitor their implementation, including assessing performance for quality and effectiveness and specifying data system requirements to collect necessary and appropriate data. The policies developed by the State agency shall address the way the State agency will monitor the performance of all programs and activities initiated under this part for quality and effectiveness. Statement of Condition: OAE requires the monitoring process of 100% of the population of the subrecipients of federal funds, at least once a year. During the year ended September 30, 2023, the OAE distributed federal funds to 118 subrecipients. However, the subrecipients subjected to formal monitoring were only thirteen (13) or 11%. Cause of Condition: For the year ended September 30, 2023, the OAE had inefficient policies and procedures manuals that prevented the full monitoring of all centers. In order to improve efficiency, the OAE subsequently implemented a new risk assessment in April 2024 that will allow the centers to be monitored in a shorter time. Effect of Condition: The failure to monitor subrecipients may lead to inappropriate use of funds by the subrecipients, and the disallowance of such costs by the federal agencies. Questioned Costs: None. Prior year finding: 2022-002 Recommendation: OAE should review the design of the internal policies according to the available resources and modify what is established in the State Plan regarding the monitoring of subrecipients. The monitoring processes should be designed to ensure that the grants were used properly, and all supporting documents were properly assembled and stored. Best practices on subrecipients monitoring should be searched and evaluated for implementation. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 39 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration
Section III. Federal Awards Findings and Questioned Costs Finding 2023-001: Late submission of single audit report package Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: All federal financial assistance listing numbers Program title: All federal financial assistance programs Federal Award Year: 10/1/2022 - 9/30/2023 Federal Award No.: All federal awards Name of federal agency: All federal agencies Name of pass-through entity: All pass-through entities Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditors' report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Statement of Condition: OAE did not submit the single audit report and reporting package for the year ended September 30, 2023, to the Federal Audit Clearinghouse during the required submission deadline period. Cause of Condition: OAE's Single Audit Report for fiscal year 2022 was submitted on December 3, 2024 by the predecessor auditor. The main causes of the late submissions of the Single Audit Reports of fiscal year 2022 and fiscal year 2023 were the delays experienced in the contract process to engage the external auditors. Effect of Condition: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part. Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted, or (d) terminating the federal award. Questioned Costs: None. Prior year finding: 2022-001 Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. View of Responsible Official and Planned Corrective Action Plan: OAE agrees with the finding and will adhere to the corrective action plan on page 41 in this audit report. Responsible Person: Miguel A. Padilla Vázquez-Director of Administration