Corrective Action Plans

Finding 519154 (2021-001)

Material Weakness 2021

CA

Reporting Allowable Costs / Cost Principles Material Weakness

Reference Number: 2021-001 Name of Contact Person: Carlene Moore, CEO Corrective Action: As the 22nd DAA returned to financial stability, management hired and trained a combined 5 full-time employees to fill the needs in human resources and accounting departments. In the future, the 22nd DAA will ...

Reference Number: 2021-001 Name of Contact Person: Carlene Moore, CEO Corrective Action: As the 22nd DAA returned to financial stability, management hired and trained a combined 5 full-time employees to fill the needs in human resources and accounting departments. In the future, the 22nd DAA will engage subject matter experts when pursuing and obtaining any federal grant programs. Proposed Completion Date: December 31, 2022

View Audit 337708

Finding 517351 (2021-007)

Material Weakness 2021

Laporte County

IN

Internal Control / Segregation of Duties Material Weakness Period of Performance § 200.1 § 200.303

FINDING 2021-007 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: Material Weakness, Other Matters The County did not have an effective internal control system to ensure compliance with the Reporting compliance requirement. Recipients were...

FINDING 2021-007 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: Material Weakness, Other Matters The County did not have an effective internal control system to ensure compliance with the Reporting compliance requirement. Recipients were required to submit a one-time Interim report to the U.S. Department of the Treasury (Treasury). The County submitted the required interim report during the audit period. The County's process for the completion and submission of the Interim Report was that the County Auditor prepared the Interim Report based on the County's records, without a proper oversight or review process in place prior to submission. The Interim Report was determined to be materially misstated. The County understated the December 31, 2019, Base Year Revenues by $660,302. Contact Person Responsible for Corrective Action: Timothy Stabosz Contact Phone Number and Email Address: 219-326-6808 x2226 tstabosz@laporteco.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: To correct this finding, we will require one person to complete the report and another to review the report prior to submission. The preparer and reviewer will sign/initial to document the review process. Anticipated Completion Date: We will begin requirement a review prior to submission as of November 21, 2024.

View Audit 335349

Finding 514410 (2021-004)

Material Weakness 2021

Town of Newport

IN

Internal Control / Segregation of Duties Material Weakness Reporting § 200.303

FINDING 2021-004 Finding Subject: Water and Waste Disposal System for Rural Communities - Reporting Summary of Finding: There was no documented oversight, review or approval process to ensure the required RD 442-2 (Statement of Budget, Income and Equity) and RD 442-3 (Balance Sheet) reports were com...

FINDING 2021-004 Finding Subject: Water and Waste Disposal System for Rural Communities - Reporting Summary of Finding: There was no documented oversight, review or approval process to ensure the required RD 442-2 (Statement of Budget, Income and Equity) and RD 442-3 (Balance Sheet) reports were completed and submitted timely and accurately to the Department of Agriculture (USDA). Due to the lack of internal controls, the Town did not submit required RD 442-2 and 442-3 reports to the USDA during the audit period. Contact Person Responsible for Corrective Action: Rachel West, Clerk-Treasurer Contact Phone Number and Email Address: 765.492.8110 / newport.indiana@gmail.com Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Establish and maintain effective internal control over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Required forms will be prepared and submitted for approval prior to submission. Anticipated Completion Date: March 1, 2025

View Audit 332703

Finding 514409 (2021-003)

Material Weakness 2021

Town of Newport

IN

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.303

FINDING 2021-003 Finding Subject: Water and Waste Disposal Systems for Rural Communities - Internal Controls Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the Town in order to ensure compliance with requirements related to th...

FINDING 2021-003 Finding Subject: Water and Waste Disposal Systems for Rural Communities - Internal Controls Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the Town in order to ensure compliance with requirements related to the grant agreement and the following compliance requirements: Activities Allowed or Unallowed, Allowable Costs/Cost Principles & Matching. Contact Person Responsible for Corrective Action: Rachel West, Clerk-Treasurer Contact Phone Number and Email Address: 765.492.8110 / newport.indiana@gmail.com Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Implement a system of checks and balances to ensure disbursements made are allowable and in accordance with contract provisions relating to grants. Include federal expenditures in monthly board minutes. Anticipated Completion Date: November 12, 2024

View Audit 332703

Finding 508340 (2021-004)

None 2021

Elle Foundation

LA

Matching / Level of Effort / Earmarking

Corrective Action Planned: Elle Foundation will implement policies, procedures, and related oversight activities to ensure Management and key staff maintain awareness of due dates for all compliance reporting including but not limited to submitting Single Audits to the FAC. Contact Person: Cassand...

Corrective Action Planned: Elle Foundation will implement policies, procedures, and related oversight activities to ensure Management and key staff maintain awareness of due dates for all compliance reporting including but not limited to submitting Single Audits to the FAC. Contact Person: Cassandra Montgomery, Executive Director Anticipated Completion Date: I was aware we were required to have audits for federal compliance. I honestly did not know of this Federal Clearing House compliance requirement. The previous auditor may have advised us but as I said above, based on previous federal audits, we believed we were fine. We have engaged our current auditor, the appropriate personnel and implemented procedures accordingly. Our anticipated date of full compliance with this audit reporting requirement is September 30, 2024.

View Audit 328912

Finding 504930 (2021-002)

Material Weakness 2021

City of Long Beach

CA

Reporting Matching / Level of Effort / Earmarking Cash Management § 200.303 § 200.502 § 200.510

Program: Transportation Infrastructure Finance & Innovation Action (TIFIA) Program (ALN 20.223) Finding: 2021-002 Contact Person: Wei Chi Director of Finance City of Long Beach Harbor Department Phone: (562) 283-7594 Email: wei.chi@polb.com Corrective Action Plan: Going forward, the Harbor Depart...

Program: Transportation Infrastructure Finance & Innovation Action (TIFIA) Program (ALN 20.223) Finding: 2021-002 Contact Person: Wei Chi Director of Finance City of Long Beach Harbor Department Phone: (562) 283-7594 Email: wei.chi@polb.com Corrective Action Plan: Going forward, the Harbor Department will ensure that federal loans are reported on the SEFA. The expected completion date for implementation of these planned actions is no later than June 30, 2025.

View Audit 327686

Finding 503832 (2021-002)

Material Weakness 2021

City of Framingham

MA

Procurement, Suspension & Debarment Material Weakness Reporting § 200.318

2021-002 Special Education Cluster - CFDA No. 84.027 and 84.173 Recommendation: We recommend procedures to maintain records sufficient to detail the history of all procurements be strengthened. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Ac...

2021-002 Special Education Cluster - CFDA No. 84.027 and 84.173 Recommendation: We recommend procedures to maintain records sufficient to detail the history of all procurements be strengthened. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: As of 7/1/2022, Framingham Public Schools will no longer claim the Massachusetts Chapter 30B SPED exemption (Appendix A. #8 & #22) for any SPED contracts being paid with federal funds. Instead, these contracts will be subject to the standard Chapter 30B procurement policies. FPS Executive Director of Finance and Operations, Lincoln Lynch IV, will meet with Director of SPED, Laura Spear, and City of Framingham Chief Procurement Officer, Jennifer Pratt, to make them aware of this finding and request that 1) all SPED grant funded contracts going forward will follow standard Chapter 30-B procurement policies and 2) City of Framingham updates their accounting procedures/procurement policies to reflect this change by 7/1/2022. Name(s) of the contact person(s) responsible for corrective action: Lincoln Lynch, IV - Executive Director of Finance and Operations Framingham Public Schools Planned completion date for corrective action plan: In progress with a start date of 7/1/2022.

View Audit 326125

Finding 503666 (2021-001)

Significant Deficiency 2021

Public Defender Association

WA

Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency

Significant deficiency in internal control over compliance for allowable costs related to adequate documentation. Management Response: We acknowledge the finding and provide the following corrective action plan. Corrective Action Plan: • This is primarily related to the absence of receipts for expen...

Significant deficiency in internal control over compliance for allowable costs related to adequate documentation. Management Response: We acknowledge the finding and provide the following corrective action plan. Corrective Action Plan: • This is primarily related to the absence of receipts for expense items under $75. There are three items contributing to this finding: 1) Receipts that were not able to be located related to employees who had left the organization and did not provide receipts prior to departure - $96.12 of sample list. 2) Receipts that were simply not able to be found - $18.86 from sample list. 3) In general, PDA relies on our credit card platform for the repository of credit card receipts. The forum used during 2021 was “Elan”. Elan only retains receipts up to a maximum of 12 months from the date of spending. Due to the timing of the audit, in most cases 7-12 months had passed when the receipts were requested, and we were not able to extract from that system and therefore relied on employees’ records (see #1-2 above). • PDA’s policy is to retain and upload receipts for all spending, no minimum. • In May of 2022, PDA moved to a new credit card platform (“Center”), which retains receipts into perpetuity. Anticipated completion date: Quarter 1, 2024 Name(s) of the contact person(s) responsible for corrective action: Co-Executive Directors, Finance team

View Audit 325873

Finding 502334 (2021-006)

Material Weakness 2021

Alfalfa County

OK

Special Tests & Provisions Allowable Costs / Cost Principles Period of Performance § 200.303

We will research the compliancerequirements for each Major Federal Grant the County receives. Withthe compliance requirements in mind, we will establish policies and procedures to satisfy those requirements and practice oversight over federal grant activity.

View Audit 324377

Finding 502216 (2021-004)

Significant Deficiency 2021

American Association of Physics Teachers, Inc.

MD

Matching / Level of Effort / Earmarking Procurement, Suspension & Debarment Significant Deficiency § 200.303

Finding 2021-004: Payroll Federal Program: Research and Development Cluster (Education and Human Resources) Assistance Listing Number and Title: 47.076 STEM Education Name of Federal Agency, Pass Through Entity (when applicable), Award Number and Year: National Science Foundation: 1624185 (9/16/2016...

Finding 2021-004: Payroll Federal Program: Research and Development Cluster (Education and Human Resources) Assistance Listing Number and Title: 47.076 STEM Education Name of Federal Agency, Pass Through Entity (when applicable), Award Number and Year: National Science Foundation: 1624185 (9/16/2016 – 8/31/2022), 1726113 (8/1/2017 – 9/30/2023) Condition: Payroll approvals for individuals are not always made by individuals who are the employee’s supervisors or are otherwise knowledgeable about their level of effort during the payroll periods paid for. Of the 31 individual payroll payments tested to 7 separate individuals, totaling $63,848, we identified 16 total payments to 4 separate individuals, totaling $14,907 charged to federal grants, where the timesheet was approved by the CFO, who we do not consider to be knowledgeable of the employee’s activities during a given pay period. One of these four individuals was a full-time employee and the other three were part-time employees. Views of Responsible Officials and Planned Corrective Actions: AAPT has made changes to correctly reflect the employee’s assigned supervisor based on the position and job duties of the employees. Anticipated Completion Date: 04/01/2024 Responsible Official: Michael Brosnan, CFO

View Audit 324370

Finding 502209 (2021-003)

Material Weakness 2021

American Association of Physics Teachers, Inc.

MD

Cash Management Material Weakness Period of Performance § 200.302 § 200.508 § 200.510

Finding 2021-003: Reconciliation of Accounts Federal Program: Research and Development Cluster (Education and Human Resources) Assistance Listing Number and Title: 47.076 STEM Education Name of Federal Agency, Pass Through Entity (when applicable), Award Number and Year: National Science Foundation:...

Finding 2021-003: Reconciliation of Accounts Federal Program: Research and Development Cluster (Education and Human Resources) Assistance Listing Number and Title: 47.076 STEM Education Name of Federal Agency, Pass Through Entity (when applicable), Award Number and Year: National Science Foundation: 1524963 (11/1/2015 – 9/30/2021), 1812860 (9/1/2018 – 8/31/2020) Condition: The year-end schedules for federal grants receivable, for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $80,978 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 10/15/2024 Responsible Official: Michael Brosnan, CFO

View Audit 324370

Finding 502205 (2021-002)

Material Weakness 2021

American Association of Physics Teachers, Inc.

MD

Internal Control / Segregation of Duties Material Weakness Matching / Level of Effort / Earmarking § 200.303

Finding 2021-002: Segregation of Duties Federal Program: Research and Development Cluster (Education and Human Resources) Assistance Listing Number and Title: 47.076 STEM Education Name of Federal Agency, Pass Through Entity (when applicable), Award Number and Year: National Science Foundation: 1431...

Finding 2021-002: Segregation of Duties Federal Program: Research and Development Cluster (Education and Human Resources) Assistance Listing Number and Title: 47.076 STEM Education Name of Federal Agency, Pass Through Entity (when applicable), Award Number and Year: National Science Foundation: 1431638 (9/1/2014 – 8/31/2022), 1524963 (11/1/2015 – 9/30/2021), 1500529 (9/1/2015 – 8/31/2022), 1624185 (9/16/2016 – 8/31/2022), 1640791 (9/15/2016 – 8/31/2022), 1720869 (5/15/2017 – 4/30/2022), 1726113 (8/1/2017 – 9/30/2023), 1821462 (7/1/2018 – 6/30/2024), 1812860 (9/1/2018 – 8/31/2020), 1940925 (1/15/2020 – 12/31/2023), 1907950 (7/1/2019 – 6/30/2024), 2015205 (4/1/2020 – 3/31/2022), 2021059 (10/1/2020 – 9/30/2024) Federal Program: Research and Development Cluster (Mathematical and Physical Sciences) Assistance Listing Number and Title: 47.049 Mathematical and Physical Sciences Name of Federal Agency, Pass Through Entity, Award Number and Year: National Science Foundation: 1821372 (10/1/2018 – 9/30/2024 pass through entity American Physical Society), 1834530 (9/1/2018 – 8/31/2025 pass through entity American Physical Society), 1938815 (8/1/2020 – 7/31/2024) Federal Program: Research and Development Cluster (Science) Assistance Listing Number and Title: 43.001 Science Name of Federal Agency, Pass Through Entity: National Aeronautics and Space Administration: NNX16AR36A (8/24/2016 – 8/23/2021 pass through entity Temple University of the Commonwealth System of Higher Education), 80NSSC21K1560 (6/28/2021 – 6/27/2022 pass through entity Temple University of the Commonwealth System of Higher Education) Condition: The Chief Financial Officer is responsible for posting entries into the accounting system without a second level review, and obtaining all bank statements unopened while also having the ability to add or modify payees and unilaterally initiate and authorize electronic fund transfers such as automated clearing house payments. The CFO is also responsible for opening the mail which may contain payments by check, and can manually reduce receivable balances. Views of Responsible Officials and Planned Corrective Actions: AAPT has instituted the segregation of duties of submitting and approval of electronic payments. The senior accountant has been authorized to submit the ACH/Wire transfer requests. The CFO has the authorization of approval of submitted electronic payments. The change was activated around March 15, 2024 The staff will be trained on generating journal entries previous prepared by the CFO and supervised and approve by the CFO – completed date May 15, 2024 The administrative assistant of the CEO will come to AAPT twice weekly to process incoming mail and create an initial recordation log of checks or cash received. The administrative assistant will not have access in any system to enter/modify/delete any information related to checks that are received. Anticipated Completion Date: January 2025 Responsible Official: Michael Brosnan, CFO

View Audit 324370

Finding 496367 (2021-103)

Material Weakness 2021

Inter-Tribal Council of Nevada, Inc.

NV

Matching / Level of Effort / Earmarking Cash Management Reporting § 200.305

We agree with the finding and acknowledge that this issue has been previously identified in past audits. The repeat occurrence was primarily due to understaffing and turnover within the finance department compounded by the COVID 19 pandemic of 2020, which significantly impacted the internal controls...

We agree with the finding and acknowledge that this issue has been previously identified in past audits. The repeat occurrence was primarily due to understaffing and turnover within the finance department compounded by the COVID 19 pandemic of 2020, which significantly impacted the internal controls on the accounts payable process. While deferred revenue at 9/30/2021 was $1,377,071 and a due to grantor agency at $269,375 total grant accounts receivable net at 9/30/2021 is $2,206,868 which exceeds these two liability balances. The fundamental cause for deferred revenue is insufficient financial and grant administration staffing to maintain current on agency advances, expenditures reimbursements and reporting. As reported in Findings 2021-102, finance has implemented a Grant Tracker system that will provide timely information on the status of grant reporting with timely reporting and review to grant managers, program directors and the executive director. Complete adoption of this tool by all grant administrators will be completed by September 30, 2024. Anticipated Completion Date: Ongoing

View Audit 319246

Finding 496357 (2021-101)

Material Weakness 2021

Inter-Tribal Council of Nevada, Inc.

NV

Internal Control / Segregation of Duties Reporting Matching / Level of Effort / Earmarking § 200.303

We agree with the findings 2021-001, 2021-003, and 2021-004, and acknowledge that this issue has been previously identified in past audits. The repeat occurrence was primarily due to understaffing and turnover within the finance, WIC, CCDF, Head Start, FVPP, and WIC departments, followed by addition...

We agree with the findings 2021-001, 2021-003, and 2021-004, and acknowledge that this issue has been previously identified in past audits. The repeat occurrence was primarily due to understaffing and turnover within the finance, WIC, CCDF, Head Start, FVPP, and WIC departments, followed by additional staffing challenges during and post COVID 19 pandemic of 2020. In addition to the Corrective Action Planned related to Finding 2020-101, with respect to the WIC, CCDF, Head Start and FVPP programs, the Executive Director has required additional training for the Program Directors on internal controls, and relevant fiscal and administrative grant training following review of the prior repeat audit findings. We have been implementing collaboration between program directors and fiscal staff to improve overall compliance for grant funds, including budgeting, reporting, policies and procedures and processes. Anticipated Completion Date: On-going – Final Grants Management Document expected to be presented and adopted by the ITCN executive board by September 30, 2025. The Final FY 2021 Financial Statements, including the Corrective Action Planned will be presented to the executive board and program directors for overview. The Executive Director will be responsible for on-going communication and engagement to improve internal controls, and regularly scheduling meetings for status updates on the Corrective Action Planned and review quarterly reports. Beginning January 2022, we have developed and drafted a grants management handbook as a resource for program and fiscal staff. As we continue to make improvements and amendments to internal processes and policies and procedures, the grants management will be updated, with a final copy presented to the Executive Board for adoption and approval.

View Audit 319246

Finding 485615 (2021-002)

None 2021

Great Redwood Trail Agency

CA

Matching / Level of Effort / Earmarking

Planned Corrective Action: Pursuant to SB1029 (McGuire) as amended in August 2018, management of North Coast Railroad cooperated with the California State Transportation Agency (CalSTA) to discharge the debt obligation to the Federal Railroad Administration Railroad Rehabilitation and Improvement Pr...

Planned Corrective Action: Pursuant to SB1029 (McGuire) as amended in August 2018, management of North Coast Railroad cooperated with the California State Transportation Agency (CalSTA) to discharge the debt obligation to the Federal Railroad Administration Railroad Rehabilitation and Improvement Program. Funds were included in the 2018-2019 State budget to discharge this debt and in July 2021, $2.4 million was paid to pay the RRIF loan in full. Therefore, the financial test requirements set by the Federal Railroad Administration are no longer applicable. Person responsible for Corrective Action Plan: Great Redwood Trail Agency and Elaine Hogan, General Manager. Anticipated Date of Completion: As stated above, with the July 2021 repayment of the RRIF loan in full, the financial test requirements are no longer applicable.

View Audit 318387

Finding 485614 (2021-001)

Significant Deficiency 2021

Great Redwood Trail Agency

CA

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Finding Numbers: 2021-1 & 2020-1 Lack of reporting under Financial and Project Reports requirement 4.6 (Significant Deficiency and Material Noncompliance) Planned Corrective Action: Pursuant to SB1029 (McGuire) as amended in August 2018, management of North Coast Railroad cooperated with the Califor...

Finding Numbers: 2021-1 & 2020-1 Lack of reporting under Financial and Project Reports requirement 4.6 (Significant Deficiency and Material Noncompliance) Planned Corrective Action: Pursuant to SB1029 (McGuire) as amended in August 2018, management of North Coast Railroad cooperated with the California State Transportation Agency (CalSTA) to discharge the debt obligation to the Federal Railroad Administration Railroad Rehabilitation and Improvement Program. Funds were included in the 2018-2019 State budget to discharge this debt and in July 2021, $2.4 million was paid to pay the RRIF loan in full. Person responsible for Corrective Action Plan: Great Redwood Trail Agency and Elaine Hogan, General Manager. Anticipated Date of Completion: This corrective action was completed in July 2021 with the repayment of the RRIF loan in full.

View Audit 318387

Finding 484908 (2021-038)

Material Weakness 2021

Commonwealth of the Northern Mariana Islands

MP

Questioned Costs Matching / Level of Effort / Earmarking

Finding No.: 2021-038 AL Program: 97.036 - Disaster Grants – Public Assistance (Presidentially Declared Disasters) Area: Matching, Level of Effort and Earmarking Questioned Costs: $944,661 Contact Person(s): Patrick Guerrero, Governor’s Authorized Rep., PAO Corrective Action Plan: The CNMI PA...

Finding No.: 2021-038 AL Program: 97.036 - Disaster Grants – Public Assistance (Presidentially Declared Disasters) Area: Matching, Level of Effort and Earmarking Questioned Costs: $944,661 Contact Person(s): Patrick Guerrero, Governor’s Authorized Rep., PAO Corrective Action Plan: The CNMI PAO disagrees with this finding. For that specific transaction, the CNMI Government paid the vendor 100% of the invoice(s), which the CNMI PAO later reimbursed the Government for 90%. As for the following line items we acknowledge that this may be a finding. As we were looking through our documents and through the PW history, we had previously been awarded hazard mitigation to replace wooden poles with concrete poles. Approved hazard mitigation work would be covered at 100%. In the latest version, concrete poles are still written in the scope of work, but the cost of hazard mitigation was removed. We believe this to be an error which we will discuss and work out with our grantor. Proposed Completion Date: Ongoing

View Audit 317760 Questioned Costs: $1

Finding 484896 (2021-030)

Significant Deficiency 2021

Commonwealth of the Northern Mariana Islands

MP

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking

Finding No.: 2021-030 AL Program: 21.023 - Emergency Rental Assistance Program Area: Reporting Questioned Costs: $0 Contact Person(s): Epiphanio Cabrera, Jr., Grants Administrator, OGM-SC Corrective Action Plan: The Office of Grants Management disagrees with the finding because OGM was not i...

Finding No.: 2021-030 AL Program: 21.023 - Emergency Rental Assistance Program Area: Reporting Questioned Costs: $0 Contact Person(s): Epiphanio Cabrera, Jr., Grants Administrator, OGM-SC Corrective Action Plan: The Office of Grants Management disagrees with the finding because OGM was not in charge of reporting in the beginning; we had no access to upload the reports nor knew exactly what to load. The Secretary of Finance Office personnel at that time had all the controls and knowledge of what was needed. Proposed Completion Date: Ongoing

View Audit 317760

Finding 484855 (2021-019)

Significant Deficiency 2021

Commonwealth of the Northern Mariana Islands

MP

Questioned Costs Matching / Level of Effort / Earmarking

Finding No.: 2021-019 AL Program: 15.875 - Economic, Social, and Political Development of the Territories Area: Matching, Level of Effort and Earmarking Questioned Costs: $7,488 Contact Person(s): Nerissa B. Karakaya, CIP COTR (assisting PAO) Corrective Action Plan: We agree with this findin...

Finding No.: 2021-019 AL Program: 15.875 - Economic, Social, and Political Development of the Territories Area: Matching, Level of Effort and Earmarking Questioned Costs: $7,488 Contact Person(s): Nerissa B. Karakaya, CIP COTR (assisting PAO) Corrective Action Plan: We agree with this finding. This is related to FEMA Cost Share (BU5696) and CIP had minimal involvement in this. However, it has been communicated to program managers that they are accountable for maintaining accurate and comprehensive documentation of program expenditures. We are committed to addressing this issue promptly and ensuring that proper procedures are followed to maintain transparency and accountability. Proposed Completion Date: Ongoing

View Audit 317760 Questioned Costs: $1

Finding 480927 (2021-009)

Material Weakness 2021

Puerto Rico Electric Power Authority

PR

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring

Management acknowledges the findings and has implemented a corrective action plan to develop Standard Operating Procedures (SOPs) for current Grant management activities in order to assure that only expenditures incurred in each approved Project Worksheet (PW) that are not subsequently disallowed by...

Management acknowledges the findings and has implemented a corrective action plan to develop Standard Operating Procedures (SOPs) for current Grant management activities in order to assure that only expenditures incurred in each approved Project Worksheet (PW) that are not subsequently disallowed by the Federal Agency are included in the SEFA. In addition, the SEFA was amended to reflect PW expenditure in the accrual basis of accounting. 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 - Nelson Morales Estimated Completion Date - July 2025

View Audit 317030

Finding 480926 (2021-008)

Material Weakness 2021

Puerto Rico Electric Power Authority

PR

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.302 § 200.303

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

View Audit 317030

Finding 480856 (2021-004)

Significant Deficiency 2021

American Association of Physics Teachers, Inc.

MD

Matching / Level of Effort / Earmarking Significant Deficiency § 200.303

Finding 2021-004: Payroll Federal Programs: Research and Development Cluster: 47.0746 Condition: Payroll approvals for individuals are not always made by individuals who are the employee's supervisors or are otherwise knowledgeable about their level of effort during the payroll periods paid for. Vie...

Finding 2021-004: Payroll Federal Programs: Research and Development Cluster: 47.0746 Condition: Payroll approvals for individuals are not always made by individuals who are the employee's supervisors or are otherwise knowledgeable about their level of effort during the payroll periods paid for. Views of Responsible Officials and Planned Corrective Actions: AAPT has made changes to correclty reflect the employee's assigned supervisor based on the position and job duties of the employees. Anticipated Completion Date: 04/01/2024 Responsible Official: Michael Brosnan, CFO

View Audit 316985

Finding 480849 (2021-003)

Material Weakness 2021

American Association of Physics Teachers, Inc.

MD

Material Weakness Reporting Matching / Level of Effort / Earmarking § 200.302 § 200.508 § 200.510

Finding 2021-003: Reconciliation of Accounts Federal Program: Research and Development Cluster: 47.076 Condition: The year-end schedules for federal grants receivable, for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Views of Responsible Officials an...

Finding 2021-003: Reconciliation of Accounts Federal Program: Research and Development Cluster: 47.076 Condition: The year-end schedules for federal grants receivable, for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $73,057 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by April, 30,2024 The remaining balance was earned in 2021. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO

View Audit 316985

Finding 480685 (2021-001)

Significant Deficiency 2021

Puerto Rico Office Management and Budget

PR

Subrecipient Monitoring Reporting Significant Deficiency

3 de julio de 2024 Section II – Federal Award Findings and Questioned Costs Finding Number: 2021-001 Agency: Puerto Rico Office of Management and Budget Federal Program: Coronaviru...

3 de julio de 2024 Section II – Federal Award Findings and Questioned Costs Finding Number: 2021-001 Agency: Puerto Rico Office of Management and Budget Federal Program: Coronavirus Relief Fund Assistant listing number: 21.019 Grant Number: N/AV Grant Period: July 1, 2020 through June 30, 2021 Compliance Requirement: Reporting Category: Significant Deficiency and noncompliance over federal program Condition: During our audit of June 30, 2021 financial statement, we noted that single audit report for fiscal year 2020-2021 was not submitted by September 30, 2022. Cause: Missing of internal controls over financial reporting to produce financial statement on timely basis to comply with OMB reporting deadlines. Effect: Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Recommendation: To improve, execute and monitors accounting periods end closings as planned in order to get a financial statement on time to comply with required deadlines. Also, keep track and communication of federal programs compliances with regulatory parties and among agency’s responsible departments involve and establish a program deadline calendar. Questioned Costs: None Perspective of the information: Single audit report was issued after due date. The information was not drawn from a statistical sample. Calle Cruz #254 Esq. Tetuán, San Juan, PR / PO Box 9023228, San Juan, PR 00902-3228 Management response: 3 de julio de 2024 Section II – Federal Award Findings and Questioned Costs Finding Number: 2021-001 Agency: Puerto Rico Office of Management and Budget Federal Program: Coronavirus Relief Fund Assistant listing number: 21.019 Grant Number: N/AV Grant Period: July 1, 2020 through June 30, 2021 Compliance Requirement: Reporting Category: Significant Deficiency and noncompliance over federal program Condition: During our audit of June 30, 2021 financial statement, we noted that single audit report for fiscal year 2020-2021 was not submitted by September 30, 2022. Cause: Missing of internal controls over financial reporting to produce financial statement on timely basis to comply with OMB reporting deadlines. Effect: Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Recommendation: To improve, execute and monitors accounting periods end closings as planned in order to get a financial statement on time to comply with required deadlines. Also, keep track and communication of federal programs compliances with regulatory parties and among agency’s responsible departments involve and establish a program deadline calendar. Questioned Costs: None Perspective of the information: Single audit report was issued after due date. The information was not drawn from a statistical sample. Calle Cruz #254 Esq. Tetuán, San Juan, PR / PO Box 9023228, San Juan, PR 00902-3228 Management response: The Puerto Rico Office of Management and Budget (OMB) acknowledges the finding and the importance of complying with the OMB Uniform Guidance for single audits. The following actions have been taken and will continue to be implemented to ensure compliance: 1. Contracting External Audit Firms: o Action Taken: OMB has contracted qualified external audit firms to conduct the single audits to ensure compliance with federal requirements. o Outcome: This measure has resolved the immediate issue of non- compliance by ensuring timely submission of audit reports. The OMB complied with instructions from the Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF) regarding reports related to these funds. The OMB presumed that AAFAF was responsible for the final report and audit to the federal government. The OMB will continue monitoring the use and disbursement of federal funds to comply with state and federal regulations. Responsible Officer: Mrs. Nivis González Rodríguez Estimated Completion Date: July 2024

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Finding 480519 (2021-003)

Material Weakness 2021

Virginia Commonwealth University Health System

VA

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Corrective action plan over control environment over lost revenue COVID – 19 – Provider Relief Funding (Assistance Listing #93.498) Recommendation: The Authority’s procedures for calculating lost revenues for the purposes of PRF reporting should be designed to ensure that audited year end numbers ar...

Corrective action plan over control environment over lost revenue COVID – 19 – Provider Relief Funding (Assistance Listing #93.498) Recommendation: The Authority’s procedures for calculating lost revenues for the purposes of PRF reporting should be designed to ensure that audited year end numbers are reported and/or tied back to amounts that are reported. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: As of July 2024, there is no further lost revenue reporting that is required to be reported. Management will implement more robust internal controls in preparation for similar future grant reporting. For lost revenues that have been submitted for PRF that do not tie back to an audited financial statement, a reconciliation will be completed and documented. Name(s) of the contact person(s) responsible for corrective action: Min Cummings, VP of Finance and Accounting, 703-629-8155 Planned completion date for corrective action plan: July 31, 2024 and going forward.

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Corrective Action Plans

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