Corrective Action Plans

Finding 1221608 (2024-049)

Material Weakness 2024

Commonwealth of Puerto Rico - Department of the Family

PR

Questioned Costs Special Tests & Provisions Eligibility

VIEWS OF RESPONSIBLE OFFICIALS ADSEF is committed to establishing a verification framework. We are prioritizing the formalization of inter-agency data sharing agreements, the implementation of standardized income validation protocols, and the execution of a comprehensive training program to ensure a...

VIEWS OF RESPONSIBLE OFFICIALS ADSEF is committed to establishing a verification framework. We are prioritizing the formalization of inter-agency data sharing agreements, the implementation of standardized income validation protocols, and the execution of a comprehensive training program to ensure all regional staff adhere to federal IEVS requirements. Action Steps: 1. MOU Formalization – Execute and maintain active Memoranda of Understanding (MOUs) with all relevant agencies to secure legal access to real-time wage, unemployment, and benefit data. 2. Develop and mandate a new "Income Eligibility Validation SOP". This protocol will strictly forbid reliance on sworn statements alone and will require technicians to cross-reference application data against verified external agency sources. 3. Integrated Data Exchange Protocol – Implement a recurring, automated schedule for the ingestion of SWICA, UC, and BENDEX/SSA data into our internal eligibility systems, ensuring data is available to technicians at the point of application and during quarterly reviews. 4. Implement a Training Curriculum – Launch a recurring, mandatory training program for all regional eligibility technicians and supervisors, focusing on federal IEVS requirements, standardized data validation procedures, and the legal consequences of non-compliance. 5. Implement a monthly "Eligibility Quality Assurance" review, where central-level management audits a sample of case files to ensure that income has been verified against external sources as required by the State Plan. IMPLEMENTATION DATE During Fiscal Year 2026-2027 RESPONSIBLE PERSON Eddie J. Burgos Auxiliary Administrator for Finance and Budget Carlos Martinez Colón Finance Director Vanessa Ayala Gerena Director of Budget Gerhil Medina Baez Auxiliary Administrator Operational Services

View Audit 405849

Finding 1221604 (2024-047)

Material Weakness 2024

Commonwealth of Puerto Rico - Department of the Family

PR

Internal Control / Segregation of Duties Reporting Questioned Costs § 200.303

VIEWS OF RESPONSIBLE OFFICIALS ADSEF is committed to establishing a comprehensive internal control framework for EBT operations. We are prioritizing the development of current, formal written procedures, the implementation of a rigorous supervisory review cycle, and the enforcement of mandatory trai...

VIEWS OF RESPONSIBLE OFFICIALS ADSEF is committed to establishing a comprehensive internal control framework for EBT operations. We are prioritizing the development of current, formal written procedures, the implementation of a rigorous supervisory review cycle, and the enforcement of mandatory training to ensure that all EBT transactions are fully reconciled, documented, and compliant with federal requirements. Action Steps: 1. ERP-Driven Reconciliation - Configure the ERP system to automatically ingest and reconcile EBT Daily Activity and Payment Summary files against federal drawdowns (PMS/SF-425) and General Ledger expenditure records. 2. Updated Procedures Manual - Develop and approve a new "EBT Reconciliation Procedures Manual" that integrates the ERP's automated workflows, superseding the 2012 document and establishing frequency, roles, and oversight. 3. ERP Variance Reporting - Utilize the ERP to generate "Exception Reports" for any unmatched transactions between EBT disbursements and federal drawdowns. 4. Staff Training & ERP Integration - Execute mandatory training for all staff on the ERP’s automated reconciliation capabilities and the new standardized SOPs for verifying EBT settlement accuracy. IMPLEMENTATION DATE During Fiscal Year 2026-2027 RESPONSIBLE PERSON Eddie J. Burgos Auxiliary Administrator for Finance and Budget Carlos Martinez Colón Finance Director Vanessa Ayala Gerena Director of Budget

View Audit 405849

Finding 1221603 (2024-046)

Material Weakness 2024

Commonwealth of Puerto Rico - Department of the Family

PR

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.302 § 200.303 § 200.305 § 200.328 § 200.329

VIEWS OF RESPONSIBLE OFFICIALS We are resolving these deficiencies by leveraging the new Government ERP system, scheduled for launch in July 2026. This platform will provide the essential functionality to properly configure our Chart of Accounts, ensuring that all TANF and PTTA administrative expend...

VIEWS OF RESPONSIBLE OFFICIALS We are resolving these deficiencies by leveraging the new Government ERP system, scheduled for launch in July 2026. This platform will provide the essential functionality to properly configure our Chart of Accounts, ensuring that all TANF and PTTA administrative expenditures are automatically segregated by federal award and Assistance Listing Number (ALN). This system will be the foundation for accurate, traceable, and reconcilable financial reporting, supported by robust internal controls and multi-level supervisory oversight. Action Steps: 1. ERP Chart of Accounts Configuration – Configure the ERP system with a granular Chart of Accounts that strictly segregates TANF and PTTA administrative expenditures, ensuring every transaction is coded to the correct federal grant and ALN. 2. Automated Reporting Workflow – Utilize the ERP's financial reporting modules to generate ACF-196TR reports directly from the General Ledger, ensuring reported expenditures are 100% traceable to source transactions. 3. Digital Reconciliation Workpaper – Require the ERP to generate an automated "Reconciliation Package" for every ACF-196TR submission, which links reported line items directly to General Ledger accounts, eliminating discrepancies. 4. Staff Training & ERP Stabilization – Execute comprehensive training for all finance staff on the new ERP accounting structure, reconciliation modules, and federal reporting requirements, ensuring the system is utilized for full audit compliance. IMPLEMENTATION DATE During Fiscal Year 2026-2027 RESPONSIBLE PERSON Eddie J. Burgos Auxiliary Administrator for Finance and Budget Carlos Martinez Colón Finance Director Vanessa Ayala Gerena Director of Budget

View Audit 405849

Finding 1221600 (2024-044)

Material Weakness 2024

Commonwealth of Puerto Rico - Department of the Family

PR

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.302 § 200.303 § 200.305 § 200.328 § 200.334

VIEWS OF RESPONSIBLE OFFICIALS ADFAN appreciates the observations presented in the audit and acknowledges the importance of strengthening its reporting processes. The agency recognizes that staffing limitations within the Finance Division have affected the ability to perform timely reviews and ensur...

VIEWS OF RESPONSIBLE OFFICIALS ADFAN appreciates the observations presented in the audit and acknowledges the importance of strengthening its reporting processes. The agency recognizes that staffing limitations within the Finance Division have affected the ability to perform timely reviews and ensure adequate segregation of duties. Additionally, the Finance Procedures Manual referenced during the audit was approved in 2009 and is currently undergoing a comprehensive revision to reflect the agency’s present operational structure and accounting practices. ADFAN is committed to improving its internal controls, enhancing staff training, and implementing the necessary measures to ensure full compliance with federal reporting requirements moving forward. IMPLEMENTATION DATE December 31, 2026 RESPONSIBLE PERSON Yazmín Cruz Colón, Budget Director

View Audit 405849

Finding 1221598 (2024-043)

Material Weakness 2024

Commonwealth of Puerto Rico - Department of the Family

PR

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring § 200.303

VIEWS OF RESPONSIBLE OFFICIALS ADFAN reaffirms its commitment to strengthening its financial reporting processes and ensuring full compliance with federal requirements. The agency will ensure that the SF 425 is completed using the appropriate accounting basis consistent with the financial system in ...

VIEWS OF RESPONSIBLE OFFICIALS ADFAN reaffirms its commitment to strengthening its financial reporting processes and ensuring full compliance with federal requirements. The agency will ensure that the SF 425 is completed using the appropriate accounting basis consistent with the financial system in use, and that all reported expenditures reconcile accurately with the accounting database. A reviewer will be designated to support the verification of information entered by the preparer, and a structured review process will be implemented prior to report submission. These corrective actions will be undertaken while acknowledging the current staffing limitations within the finance area and the ongoing revision of the Procedures Manual. Interim operational guidance will be provided to personnel to promote consistency and compliance until the updated manual is finalized. IMPLEMENTATION DATE December 31, 2026 RESPONSIBLE PERSON José A. Ruiz Quiñones, Interim Director of Finance

View Audit 405849

Finding 1221597 (2024-042)

Material Weakness 2024

Commonwealth of Puerto Rico - Department of the Family

PR

Subrecipient Monitoring Internal Control / Segregation of Duties Questioned Costs § 200.302 § 200.305 § 200.334 § 200.335 § 200.336

VIEWS OF RESPONSIBLE OFFICIALS ADSEF is committed to establishing a comprehensive internal control framework. We are prioritizing the development of formal written policies, the standardization of regional data reporting, and the implementation of a rigorous oversight system to ensure all TANF progr...

VIEWS OF RESPONSIBLE OFFICIALS ADSEF is committed to establishing a comprehensive internal control framework. We are prioritizing the development of formal written policies, the standardization of regional data reporting, and the implementation of a rigorous oversight system to ensure all TANF programmatic reports are complete, accurate, and filed on time. Action Steps: 1. Revise the Protocol of “TANF – Reporting Procedures Manual" that defines the full data lifecycle: collection, regional validation, quality control, supervisory review, and submission. 2. Regional Standardization – Establish mandatory, standardized templates for all regional offices to report programmatic data, ensuring uniformity and minimizing data entry errors. 3. Reporting Calendar & Oversight – Implement a master’s "Federal Reporting Calendar" that tracks all due dates for ACF-199, ACF-209, and other reports, with automated alerts sent to management 30 days prior to submission. 4. Training & Certification – Launch a mandatory training curriculum for all staff involved in reporting, focusing on 45 CFR Part 265 standards, data accuracy, and the consequences of reporting failures. IMPLEMENTATION DATE During Fiscal Year 2026-2027 RESPONSIBLE PERSON Blanca M. Medina Díaz Administrator Gerhil Medina Baez Auxiliary Administrator Operational Services Johana Hernandez Andaluz TANF Program Director

View Audit 405849

Finding 1221596 (2024-041)

Material Weakness 2024

Commonwealth of Puerto Rico - Department of the Family

PR

Reporting Subrecipient Monitoring Internal Control / Segregation of Duties § 200.302 § 200.303 § 200.305 § 200.328 § 200.329

VIEWS OF RESPONSIBLE OFFICIALS To resolve this, we are integrating these reporting requirements into the new Government ERP system, scheduled for launch in July 2026. This platform will provide the capability to generate accurate General Ledger data and automated financial reports, ensuring that all...

VIEWS OF RESPONSIBLE OFFICIALS To resolve this, we are integrating these reporting requirements into the new Government ERP system, scheduled for launch in July 2026. This platform will provide the capability to generate accurate General Ledger data and automated financial reports, ensuring that all LIHEAP performance data is traceable to verified accounting sources and subject to multi-level supervisory approval workflows. Action Steps: 1. ERP-Driven Financial Reporting – Configure the ERP system to generate General Ledger reports that align precisely with LIHEAP financial data requirements. The ERP will serve as the "Single Source of Truth," eliminating discrepancies between accounting and reporting. 2. Automated Reconciliation Workflows – Utilize the ERP’s native reconciliation engine to automatically match expenditure records against reported LIHEAP budget obligations, ensuring figures are accurate and validated before submission. 3. Segregation of Duties (SOPs) – Formalize protocols where the ERP system enforces mandatory "Preparer-Approver-Certifier" roles. This ensures that performance data compiled by program staff is independently validated against ERP financial records by a supervisor. 4. Training on ERP Reporting – Train all staff on how to use ERP reporting modules for financial data extraction and the new protocols for reconciling this data with programmatic LIHEAP performance metrics. IMPLEMENTATION DATE During Fiscal Year 2026-2027 RESPONSIBLE PERSON Eddie J. Burgos Auxiliary Administrator for Finance and Budget Carlos Martinez Colón Finance Director Vanessa Ayala Gerena Director of Budget Nesvia Fontanez Marín Principal Accountant Federal Reports

View Audit 405849

Finding 1221595 (2024-040)

Material Weakness 2024

Commonwealth of Puerto Rico - Department of the Family

PR

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring § 200.302

VIEWS OF RESPONSIBLE OFFICIALS ADSEF is committed to establishing a rigorous compliance framework to ensure all reported Maintenance-of-Effort (MOE) expenditures are internally consistent, fully supported by source documentation, and reconciled prior to submission. We will formalize these processes ...

VIEWS OF RESPONSIBLE OFFICIALS ADSEF is committed to establishing a rigorous compliance framework to ensure all reported Maintenance-of-Effort (MOE) expenditures are internally consistent, fully supported by source documentation, and reconciled prior to submission. We will formalize these processes through new protocols and dedicated oversight to guarantee the integrity of our federal reporting IMPLEMENTATION DATE During Fiscal Year 2026-2027 RESPONSIBLE PERSON Eddie J. Burgos Auxiliary Administrator for Finance and Budget Carlos Martinez Colón Finance Director Vanessa Ayala Gerena Director of Budget Nesvia Fontanez Marín Principal Accountant Federal Reports

View Audit 405849

Finding 1221593 (2024-038)

Material Weakness 2024

Commonwealth of Puerto Rico - Department of the Family

PR

Questioned Costs Subrecipient Monitoring Material Weakness

VIEWS OF RESPONSIBLE OFFICIALS For the purpose of strengthening compliance with the requirements established under the Federal Funding Accountability and Transparency Act (FFATA) and other applicable federal regulations, ACUDEN developed a Standard Operating Procedure (SOP) that establishes clear an...

VIEWS OF RESPONSIBLE OFFICIALS For the purpose of strengthening compliance with the requirements established under the Federal Funding Accountability and Transparency Act (FFATA) and other applicable federal regulations, ACUDEN developed a Standard Operating Procedure (SOP) that establishes clear and uniform guidelines for the collection, validation, and reporting of information related to federal funds. This procedure defines the responsibilities of the areas involved in the management of federal awards, promotes the timely submission of accurate and complete reports, and ensures that processes related to the identification and reporting of eligible subawards are carried out. IMPLEMENTATION DATE July 15, 2026 RESPONSIBLE PERSON Rafael E. Vargas Ortiz Deputy Administrator

View Audit 405849

Finding 1221589 (2024-037)

Material Weakness 2024

Commonwealth of Puerto Rico - Department of the Family

PR

Reporting Internal Control / Segregation of Duties Questioned Costs § 200.302 § 200.303 § 200.305 § 200.334 § 200.335

VIEWS OF RESPONSIBLE OFFICIALS To resolve these systemic issues, the Government of Puerto Rico is transitioning to a new Enterprise Resource Planning (ERP) system, scheduled for live launch in July 2026. This modern platform will centralize our financial data and provide the necessary automation to ...

VIEWS OF RESPONSIBLE OFFICIALS To resolve these systemic issues, the Government of Puerto Rico is transitioning to a new Enterprise Resource Planning (ERP) system, scheduled for live launch in July 2026. This modern platform will centralize our financial data and provide the necessary automation to ensure that all federal reports are accurate, traceable to source documentation, and subject to multi-level supervisory approval workflows. Action Steps: 1. ERP Implementation & Workflow – Deploy the new ERP system to centralize all financial accounting. The system will be configured to require distinct user roles for the preparation, review, and certification of federal reports. 2. Automated Traceability – Utilize ERP reporting tools to ensure all administrative expenditures are linked to valid source documentation (e.g., invoices, payroll registers), providing a clear audit trail from report to General Ledger. 3. Implement report validation tool – No federal report may be submitted until an independent, designated official has digitally validated the report against source accounting records. 4. Reconciliation SOPs – Formalize a written SOP requiring monthly reconciliations of reported federal expenditures against the ERP database. These reconciliations will be retained as evidence of review for audit purposes. 5. Training & Accountability – Conduct mandatory training for all staff on new reporting workflows and the importance of segregation of duties, ensuring all personnel understand their responsibility in maintaining accurate financial data. IMPLEMENTATION DATE During Fiscal Year 2026-2027 RESPONSIBLE PERSON Eddie J. Burgos Auxiliary Administrator for Finance and Budget Carlos Martinez Colón Finance Director Vanessa Ayala Gerena Director of Budget

View Audit 405849

Finding 1221562 (2024-034)

Material Weakness 2024

Commonwealth of Puerto Rico - Department of the Family

PR

Questioned Costs Material Weakness Period of Performance

VIEWS OF RESPONSIBLE OFFICIALS ADSEF is committed to establishing a rigorous compliance framework to ensure all grant funds are timely obligated and expended in accordance with 45 CFR §96.14. We will achieve this by integrating strict monitoring protocols into our operations, ensuring that the risk ...

VIEWS OF RESPONSIBLE OFFICIALS ADSEF is committed to establishing a rigorous compliance framework to ensure all grant funds are timely obligated and expended in accordance with 45 CFR §96.14. We will achieve this by integrating strict monitoring protocols into our operations, ensuring that the risk of Non-Compliance is identified and escalated to the federal agency in writing as required. Action Steps: 1. Protocol Development & Review – Develop new "Period of Performance Management Protocols" and conduct a comprehensive review of all existing financial reporting procedures to ensure alignment with 45 CFR §96.14. 2. Implement a Warning System – that alerts management 90 days before the end of the obligation period if funds remain unobligated, triggering an immediate internal review. 3. Automated ERP Obligation Tracking – Configure the new Government ERP system to track obligation deadlines at the grant and activity level, providing real-time visibility into the availability of funds and pending commitments. 4. Communication & Escalation SOP – Establish a formal SOP requiring that any anticipated non-compliance be communicated to the federal awarding agency in writing at least 60 days prior to the expiration of the obligation period, with all approvals archived centrally. 5. Segregation of Duties 6. Staff Training – Conduct mandatory training for all staff responsible for grant management on the Period of Performance requirements, including the legal consequences of unauthorized report amendments. IMPLEMENTATION DATE During Fiscal Year 2026-2027 RESPONSIBLE PERSON Eddie J. Burgos Auxiliary Administrator for Finance and Budget Carlos Martinez Colón Finance Director Vanessa Ayala Gerena Director of Budget Nesvia Fontanez Marín Principal Accountant Federal Reports Rodolfo Ayala Muñoz Cash Management

View Audit 405849

Finding 1221559 (2024-031)

Material Weakness 2024

Commonwealth of Puerto Rico - Department of the Family

PR

Questioned Costs Subrecipient Monitoring Eligibility § 200.334

VIEWS OF RESPONSIBLE OFFICIALS ADSEF is committed to establishing a rigorous compliance framework to ensure all participant files are complete, accurate, and readily available for audit as required by federal regulations. Action Step: 1. Standardized Documentation Checklist- Implement a mandatory, u...

VIEWS OF RESPONSIBLE OFFICIALS ADSEF is committed to establishing a rigorous compliance framework to ensure all participant files are complete, accurate, and readily available for audit as required by federal regulations. Action Step: 1. Standardized Documentation Checklist- Implement a mandatory, uniform "Eligibility Documentation Checklist" that must be completed for 100% of non-PAN/TANF applicants, ensuring ID, residency, and utility evidence are present before approval. 2. Supervisory Sign-off - Require a supervisor to perform a "Document Completeness Review" for every non-PAN/TANF file before the benefit is authorized. Files lacking mandatory documentation will be rejected by the system/workflow automatically. 3. Analysis of the Existing File Uniformity Procedure for Compliance Verification – Assessment of the physical and digital filing layout across all regions. A uniform legend and organization protocol will be mandated to facilitate monitoring and eliminate systemic filing errors. 4. Compliance Training - Execute mandatory, recurring training sessions for all regional staff on document requirements and the legal necessity of preserving records for the full three-year federal mandate. IMPLEMENTATION DATE During Fiscal Year 2026-2027 RESPONSIBLE PERSON Blanca M. Medina Díaz Administrator Gerhil Medina Baez Auxiliary Administrator Operational Services Marta Soto Ayala NAP Program Director Johana Hernandez Andaluz TANF Program Director

View Audit 405849

Finding 1221558 (2024-030)

Material Weakness 2024

Commonwealth of Puerto Rico - Department of the Family

PR

Questioned Costs Eligibility Significant Deficiency

VIEWS OF RESPONSIBLE OFFICIALS ACUDEN is committed to reinforcing our eligibility determination process by standardizing review workflows. We are prioritizing the completion of all missing documentation for affected files and ensuring that every future Eligibility Certificate reflects the required t...

VIEWS OF RESPONSIBLE OFFICIALS ACUDEN is committed to reinforcing our eligibility determination process by standardizing review workflows. We are prioritizing the completion of all missing documentation for affected files and ensuring that every future Eligibility Certificate reflects the required technical and supervisory validations to guarantee compliance. The following corrective actions will be implemented: 1. ACUDEN will recruit at least two (2) staff members to support the implementation of the eligibility verification protocol and ensure adequate capacity for document review. 2. A verification protocol will be established to confirm that all required supporting documents are present and complete prior to finalizing eligibility determinations. A standardized checklist will be created to ensure no document is missing, including during data migration processes. 3. ACUDEN will implement a mandatory dual- verification procedure for all Eligibility Certificates, requiring both the Technician and the Coordinator to sign prior to issuance. IMPLEMENTATION DATE September 2026 RESPONSIBLE PERSON Child Care Director – Sidnia Velez Assistant Administrator for Human Resources – Alex Lopez

View Audit 405849

Finding 1221551 (2024-026)

Material Weakness 2024

Commonwealth of Puerto Rico - Department of the Family

PR

Subrecipient Monitoring Cash Management Internal Control / Segregation of Duties § 200.302 § 200.303 § 200.305

VIEWS OF RESPONSIBLE OFFICIALS ADSEF is committed to a fundamental restructuring of our cash management lifecycle. By migrating drawdown processes into our ERP system, we will ensure that every request is supported by system-generated documentation, enforced through systematic segregation of duties,...

VIEWS OF RESPONSIBLE OFFICIALS ADSEF is committed to a fundamental restructuring of our cash management lifecycle. By migrating drawdown processes into our ERP system, we will ensure that every request is supported by system-generated documentation, enforced through systematic segregation of duties, and fully reconciled against the general ledger in real-time. Action Step: 1. ERP-Based SOP Manual-Implement of the Procedure Manual of ERP system. This manual will supersede legacy documentation and clearly map every procedural step to a specific ERP function. 2. Systemic Segregation ERP is configurated to enforce mandatory "Preparer" and "Approver" roles. The system will prevent a single user from both creating and authorizing a drawdown request, ensuring logical segregation of duties. 3. Automated Reconciliation-Implement a system-level control where the ERP automatically reconciles drawdown requests. Any variance will trigger a "Pending Review" flag, preventing unauthorized processing. 4. Real-Time Supervisory Review-Require supervisors to conduct an audit of all drawdown documentation directly within the ERP interface. No request will be released for funding without a digital system approval following a reconciliation review IMPLEMENTATION DATE During Fiscal Year 2026-2027 RESPONSIBLE PERSON Eddie J. Burgos Auxiliary Administrator for Finance and Budget

View Audit 405849

Finding 1221550 (2024-025)

Material Weakness 2024

Commonwealth of Puerto Rico - Department of the Family

PR

Subrecipient Monitoring Internal Control / Segregation of Duties Questioned Costs § 200.302 § 200.305 § 200.334 § 200.335 § 200.336

VIEWS OF RESPONSIBLE OFFICIALS ADFAN concurs with the finding. The agency acknowledges the requirement to maintain written procedures in accordance with 2 CFR §200.302, including procedures related to cash management and the determination of allowable costs under federal awards. The condition identi...

VIEWS OF RESPONSIBLE OFFICIALS ADFAN concurs with the finding. The agency acknowledges the requirement to maintain written procedures in accordance with 2 CFR §200.302, including procedures related to cash management and the determination of allowable costs under federal awards. The condition identified was impacted by limited staffing resources within the Finance Area, which affected the timely completion and formalization of the required written procedures. In addition, the Finance Procedures Manual is currently under review and revision to ensure compliance with Uniform Guidance requirements and to strengthen internal controls over federal programs. As corrective action, ADFAN is completing the update and formalization of the Finance Procedures Manual, which will incorporate the written procedures required by Uniform Guidance. Upon completion, the revised manual will be formally approved, communicated to relevant personnel, and implemented across the agency. Management will also continue assessing staffing needs and resource allocation within the Finance Area to support the ongoing maintenance and monitoring of financial policies and procedures. IMPLEMENTATION DATE December 31, 2026 RESPONSIBLE PERSON Rafael López Arocho Assistant Administrator on Administration

View Audit 405849

Finding 1221542 (2024-022)

Material Weakness 2024

Commonwealth of Puerto Rico - Department of the Family

PR

Subrecipient Monitoring Internal Control / Segregation of Duties Questioned Costs § 200.302 § 200.328 § 200.329 § 200.334 § 200.335

VIEWS OF RESPONSIBLE OFFICIALS The data will be evaluated by the IT department to verify the controls in place at the time the files identified as duplicates were issued. Regarding the issuance, the IT department acknowledges an error in the file transmission, which resulted in the information not b...

VIEWS OF RESPONSIBLE OFFICIALS The data will be evaluated by the IT department to verify the controls in place at the time the files identified as duplicates were issued. Regarding the issuance, the IT department acknowledges an error in the file transmission, which resulted in the information not being matched against the issuance. The data will be available as reference for evaluation. For reconciliation purposes, work will be performed efficiently and within the established timeframes to ensure that all transactions are recorded promptly in the system. This will enable the accurate completion of the reconciliation process, as well as the recording of issuances and any other related transactions, in accordance with established procedures. IMPLEMENTATION DATE During Fiscal Year 2026-2027 RESPONSIBLE PERSON Blanca M. Medina Díaz Administrator Eddie J. Burgos Auxiliary Administrator for Finance and Budget Carlos Martinez Colón Finance Director Vanessa Ayala Gerena Director of Budget Carmen Ramírez IT Director

View Audit 405849

Finding 1221472 (2024-002)

Material Weakness 2024

COUNTY OF BLACKFORD

IN

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties § 200.214 § 200.303

Finding 2024-002 – Procurement and Suspension and Debarment Contact Person Responsible for Corrective Action: Lisa Simmons, Auditor (765) 348-1620 lsimmons@blackfordcounty.in.gov Views of Responsible Officials and Corrective Action Planned: Blackford County acknowledges and agrees with the finding r...

Finding 2024-002 – Procurement and Suspension and Debarment Contact Person Responsible for Corrective Action: Lisa Simmons, Auditor (765) 348-1620 lsimmons@blackfordcounty.in.gov Views of Responsible Officials and Corrective Action Planned: Blackford County acknowledges and agrees with the finding related to Suspension and Debarment compliance and will implement additional procedures to ensure all covered transactions comply with federal requirements. To correct this finding, the County will implement the following actions: 1. A formal procurement and suspension and debarment procedure will be documented requiring verification of vendor eligibility for all covered transactions equal to or exceeding $25,000 involving federal funds. 2. Prior to each covered transaction, the County will verify vendor eligibility by one of the following methods: o Checking the System for Award Management (SAM.gov) exclusion records (formerly EPLS) o Obtaining a written certification from the vendor o Including the required suspension and debarment clause within the contract or agreement 3. Documentation supporting the verification process will be retained in the grant procurement file for audit purposes. 4. A standardized procurement checklist will be implemented to ensure all federal compliance requirements, including suspension and debarment, are completed prior to contract execution. 5. Management will perform periodic reviews of procurement files to verify compliance and consistency. 6. Staff involved in procurement and grant administration will receive additional training on federal procurement requirements and compliance expectations. These corrective actions will strengthen internal controls and ensure compliance with federal procurement and suspension and debarment requirements going forward. Anticipated Completion Date: December 31, 2026

View Audit 405742

Finding 1221394 (2024-006)

Material Weakness 2024

Village of Ontario

WI

Questioned Costs Cash Management HUD Housing Programs

Reporting Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants, Assistance Listing Number 14.251 Award Period: March 9, 2022 through August 31, 2030 Recommendation: The Village should im...

Reporting Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants, Assistance Listing Number 14.251 Award Period: March 9, 2022 through August 31, 2030 Recommendation: The Village should implement controls to report accurate information in Federal Reports. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The Village continues to work at updating its policy and procedures manuals. The Village will amend policies as necessary. Name(s) of the contact person(s) responsible for corrective action: Teresa Taylor, Village Clerk-Treasurer. Planned completion date for corrective action plan: The Village will adopt reporting policies in accordance with Uniform Guidance by December 31, 2025.

View Audit 405707

Finding 1221334 (2024-012)

Material Weakness 2024

Iowa City Community School District

IA

Internal Control / Segregation of Duties Questioned Costs Cash Management

Response and Corrective Action Plan: The District will review current processes to determine procedures to ensure federal reports are properly documented and reviewed.

View Audit 405663

Finding 1221329 (2024-011)

Material Weakness 2024

Iowa City Community School District

IA

Questioned Costs Cash Management Internal Control / Segregation of Duties

Response and Corrective Action Plan: The District will review current processes to determine procedures to ensure documentation is properly maintained for District submissions.

View Audit 405663

Finding 1221265 (2024-005)

Material Weakness 2024

GREEN RURAL REDEVELOPMENT ORGANIZATION, INC.

NC

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties

Bill.com is the system being used to approve disbursements and maintain an audit trail.

View Audit 405625

Finding 1220802 (2024-003)

Material Weakness 2024

New Mexico Community Foundation

NM

Reporting Internal Control / Segregation of Duties § 200.512

Corrective Action: The Foundation acknowledges that the 2024 single audit reporting package was not submitted by the September 30, 2025 deadline under 2 CFR 200.512. This delay resulted directly from the challenges detailed in Finding 2024-001. Significant accounting turnover delayed year-end reconc...

Corrective Action: The Foundation acknowledges that the 2024 single audit reporting package was not submitted by the September 30, 2025 deadline under 2 CFR 200.512. This delay resulted directly from the challenges detailed in Finding 2024-001. Significant accounting turnover delayed year-end reconciliations and SEFA preparation. The Foundation has implemented substantial corrective actions to address root causes and ensure future timeliness. As outlined in the response to Finding 2024-001, comprehensive SOPs now govern financial close, revenue/deposit processing, reconciliations, payroll, fiscal sponsorship financial management, and fund setup. These promote consistent monthly GL reconciliations, accurate/timely transaction recording, strong documentation, and efficient inter-departmental coordination. Supporting improvements include standardized monthly reporting, system integrations reducing manual work, clear responsibilities and timelines in SOPs, and emphasis on procedural continuity to mitigate transition risks. The Foundation is completing remaining 2024 items and committed to submitting the package promptly. With the enhanced control environment, the 2025 close and audit will be completed well within required timelines. Ongoing training, procedure reviews, and oversight by the Finance Director and Fiscal Sponsorship Manager will sustain compliance. By these actions, the Foundation has remediated the conditions and is positioned to meet all future single audit deadlines while maintaining strong fund stewardship. Person Responsible: Justin O’Shea, Finance Director Completion Date: Corrective action was completed as of December 31, 2025

View Audit 405518

Finding 1220081 (2024-005)

Material Weakness 2024

Lake County

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

FINDING 2024-005 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Burzynski Thaddeus Contact Phone Number and Email Address: 219-755-3200, burzytx@lakecountyin.org Views of Responsible Officials: We concur wit...

FINDING 2024-005 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Burzynski Thaddeus Contact Phone Number and Email Address: 219-755-3200, burzytx@lakecountyin.org Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The County will develop and implement a proper system of internal controls and segregation of duties. This will ensure accuracy and correctness of all quarterly P & E Reports in the future. Anticipated Completion Date: December 2026

View Audit 405251

Finding 1220073 (2024-002)

Material Weakness 2024

Wetzel County Center for Children and Families

WV

Internal Control / Segregation of Duties

Recommendations: Management should implement compensating controls to address the lack of segregation of duties, such as enhanced and documented review of disbursements and financial activity by an independent member of the Board of Directors, including periodic review of detailed financial reports,...

Recommendations: Management should implement compensating controls to address the lack of segregation of duties, such as enhanced and documented review of disbursements and financial activity by an independent member of the Board of Directors, including periodic review of detailed financial reports, bank reconciliations, and supporting documentation. Views of responsible officials and planned corrective actions: Management agrees with the finding and indicates that, due to limited staffing, complete segregation of duties is not feasible; however, it will strengthen compensating controls by increasing the level of Board oversight and implementing more formalized review and approval procedures over financial activity. Anticipated Completion Date: December 31, 2026

View Audit 405247

Finding 1220072 (2024-001)

Material Weakness 2024

Wetzel County Center for Children and Families

WV

Internal Control / Segregation of Duties

Recommendations: Management should implement a financial reporting process that includes maintaining a complete general ledger and trial balance, recording all balance sheet accounts, and preparing complete financial statements and disclosures on a periodic basis. Management should establish review ...

Recommendations: Management should implement a financial reporting process that includes maintaining a complete general ledger and trial balance, recording all balance sheet accounts, and preparing complete financial statements and disclosures on a periodic basis. Management should establish review procedures to ensure the accuracy and completeness of financial reporting, whether performed internally or with the assistance of external accountants. In addition, management should implement formal policies and procedures requiring the preparation, approval, and retention of complete Board meeting minutes for all meetings, as well as the retention of supporting documentation for significant estimates and transactions, including compensation decisions and bonus determinations, to ensure that all amounts recorded in the financial statements are adequately supported. Views of responsible officials and planned corrective actions: Management agrees with the finding and acknowledges the limitations of its current financial reporting and documentation practices. Management indicates it will evaluate options to improve its accounting system and financial reporting capabilities, strengthen review procedures over financial statements prepared by external accountants, and implement policies to ensure that Board meeting minutes and supporting documentation for compensation decisions are properly maintained going forward. Anticipated Completion Date: September 30, 2026

View Audit 405247

Corrective Action Plans

Filters