Management acknowledges the findings and has
implemented a corrective action plan to enhance
compliance with Federal awards. This plan includes
developing Standard Operating Procedures (SOPs) for grant
management activities, identifying and documenting
existing internal controls, and maintaining con...
Management acknowledges the findings and has
implemented a corrective action plan to enhance
compliance with Federal awards. This plan includes
developing Standard Operating Procedures (SOPs) for grant
management activities, identifying and documenting
existing internal controls, and maintaining constant
communication with stakeholders to prevent material noncompliance.
Additionally, PREPA will provide training to
staff on the new SOPs and establish a monitoring
mechanism to continuously assess and improve the
effectiveness of these controls.
The corrective action plan, supervised by Mr. Ezequiel
Nieves from the PREPA Disaster Funding Management
Office, is expected to be completed by July 2025.
Management is committed to addressing deficiencies,
ensuring that processes and controls are robust and
effective, and that Federal awards are managed
transparently and in full compliance with all regulatory
requirements.
Effective June 1, 2021, the Authority transitioned the
management and operation of its transmission and
distribution network as well as certain back- office
functions, including billing, collections and accounting, to a
third party. The third-party operator is reviewing operating
procedures and controls within its responsibilities to make
the necessary improvements.
Management will work to address these findings with the
assistance of the third-party operators, where applicable.
Also, effective July 1, 2023, the Authority transitioned the
management and operation of its generation assets as well
as certain back- office functions to a third party. The thirdparty
operator is reviewing operating procedures and
controls within its responsibilities to make the necessary
improvements. In addition, the Authority will also be
implementing and monitoring corrective actions taken by
the new generation segment operator.
Contact Name Responsible for Corrective Action Plan - Ezequiel Nieves
Estimated Completion Date - July 2025