Corrective Action Plans

Finding 1222839 (2025-002)

Material Weakness 2025

CO

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.328 § 200.329

Finding 2025-002 Federal Agency Name: U.S. Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds FFALN # 21.027 Finding Summary: Eide Bailly LLP prepared our single audit for Federal Coronavirus State and Local Fiscal Recovery Funds where the Town is a subrecipient t...

Finding 2025-002 Federal Agency Name: U.S. Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds FFALN # 21.027 Finding Summary: Eide Bailly LLP prepared our single audit for Federal Coronavirus State and Local Fiscal Recovery Funds where the Town is a subrecipient to Douglas County who is the recipient of the funds. Eide Bailly LLP identified that the Town did not have documented or consistently applied internal controls to ensure compliance with the County’s subrecipient guidance requiring the submission of formal special reports for ALN 21.027. Responsible Individuals: Mark Henderson, Assistant Director of Castle Rock Water Corrective Action Plan: Staff will complete quarterly reports including project progress and estimated project infrastructure costs. The reports will be reviewed by management prior to submission to the recipient of the Federal Funds (Douglas County). Anticipated Completion Date: Ongoing during the period that the Town is a subrecipient of these funds for the project.

View Audit 406402

Finding 1222793 (2025-004)

Material Weakness 2025

Cook County, Illinios

IL

Questioned Costs Subrecipient Monitoring Cash Management § 200.208 § 200.329

Subject: 2025 Single Audit Finding 2025-004 2025-004 Management Response: Management acknowledges the finding. DEMRS did not submit the required quarterly financial and performance reports to the Illinois Emergency Management Agency (IEMA) for the Homeland Security Grant Program during the fiscal ye...

Subject: 2025 Single Audit Finding 2025-004 2025-004 Management Response: Management acknowledges the finding. DEMRS did not submit the required quarterly financial and performance reports to the Illinois Emergency Management Agency (IEMA) for the Homeland Security Grant Program during the fiscal year. Root Cause Analysis: Over multiple years, DEMRS experienced significant turnover in key finance and grant management positions, which created gaps in continuity and delayed the department's transition to IEMA's Amplifund reporting system. As prior management departed and new staff were onboarded, the department faced operational challenges that affected the consistency of its grant reporting processes. Due to Amplifund's requirement that reimbursement requests be submitted sequentially before performance reports can be filed, the delays in prior period submissions prevented DEMRS from accessing and submitting the quarterly reports. Statewide pauses in FEMA and IEMA grant processing further contributed to the backlog. Corrective Action: DEMRS will complete and submit all outstanding reimbursement requests and performance reports for UASI 2022, UASI 2023, and UASI 2024 to bring the County into full compliance with grantor requirements. Preventive Action: DEMRS will implement a grants compliance calendar that tracks all reporting deadlines. Future reports will be prepared by the Manager of Grants & Contracts and reviewed and approved by the Associate Director of Finance, with documented evidence of review. Responsible Party: Damian Albert, Associate Director of Finance, damian.albert@cookcountyil.gov. 312.603.8177 Tina Bhaga, Manager, Grants & Contracts, tina.bhaga@cookcountyil.gov, 312.603.8543 Planned Completion Date: January 1, 2027

View Audit 406385

Finding 1222792 (2025-003)

Material Weakness 2025

Cook County, Illinios

IL

Allowable Costs / Cost Principles Cash Management Questioned Costs § 200.302 § 200.307 § 200.472

Memo: Cause and Corrective Action Plan for Finding 2025-003 This correspondence serves as Cook County Health (CCH) and Cook County Department of Public Health (CCDPH) response to Finding 2025-003. During the FY2025 Single Audit, one audit finding was identified by Washington, Pittman & McKeever, LLC...

Memo: Cause and Corrective Action Plan for Finding 2025-003 This correspondence serves as Cook County Health (CCH) and Cook County Department of Public Health (CCDPH) response to Finding 2025-003. During the FY2025 Single Audit, one audit finding was identified by Washington, Pittman & McKeever, LLC. The root cause and corrective action plan is identified below. Condition During the current audit period, the Cook County Department of Public Health (DPH) did not comply with federal regulations regarding the use and reporting of program income as it relates to funds awarded through the RWHAP Root Cause Analysis The HIV grants transitioned to CCH from an external organization in July 2025. Award amounts were granted in multiple phases, requiring four budget revisions, with the final revision approved in December 2025. The contractual period covered March 2025 through December 2025. During the transition period, CCH lacked formal operational procedures to identify, record, and track program income. Several operational and administrative challenges contributed to this issue, including: • No written internal procedures were in place to define or track program income requirements. • No formal transition teams were established to identify core grant obligations, resulting in unclear interpretation of sponsor requirements. • CCH had not yet identified the appropriate internal systems or interdepartmental collaborations necessary to retrieve and reconcile program income data. • Organizational priorities during the transition focused on maintaining existing deliverables, including vouchering, budget compliance, hiring, and onboarding of direct and administrative staff. • Staffing Shortages, CCH onboarded personnel quickly as contractual employees, direct staff transitioned onboard as CCH employees in phases upon execution of grant contracts. Corrective Action Plan CCH Director of Grants Accounting is implementing formal written processes and procedures to ensure compliance with Federal Uniform Guidance requirements related to program income. The corrective action plan includes: • Developing standardized written procedures that clearly define program income requirements and tracking responsibilities. • Establishing shared roles and responsibilities across departments to support consistent data collection, reconciliation, and reporting. • Identifying the specific data elements required to accurately record and monitor program income. • Formalizing interdepartmental collaboration processes necessary to retrieve and validate program income information. • Defining the systems and reporting tools that will be used to track and maintain program income records. • Providing staff training on program income requirements, documentation standards, and compliance expectations. These actions will strengthen internal controls and ensure timely, accurate identification and tracking of program income moving forward, official approval/implementation is expected December 2026

View Audit 406385

Finding 1222788 (2025-001)

Material Weakness 2025

Community Action Agency of New Haven, Inc.

CT

Reporting Questioned Costs Material Weakness

Material Weakness in Internal Control Over Financial Reporting The Agency’s year-end financial reporting controls did not detect and correct a material misstatement related to client assistance pass-through funding prior to the commencement of audit procedures. The misstatement related, in part, to ...

Material Weakness in Internal Control Over Financial Reporting The Agency’s year-end financial reporting controls did not detect and correct a material misstatement related to client assistance pass-through funding prior to the commencement of audit procedures. The misstatement related, in part, to the year-end confirmation and reconciliation process with State pass-through agencies. As a result, a material audit adjustment was required to properly state the financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). Management concurs with the finding. CAANH terminated its fiduciary services contract with NOI in 2025 and engaged CohnReznick with a start date of October 1, 2025, as its new fiduciary services provider. Management will continue to ensure that all year-end financial reporting, account reconciliations, and confirmation processes are completed in a timely manner. In addition, management will verify that all financial transactions are accurately recorded and reviewed prior to the commencement of the annual audit to support complete, accurate, and timely financial reporting. Amos Smith, President & CEO Will be in operation for all future audit periods.

View Audit 406360

Finding 1222778 (2025-001)

Material Weakness 2025

Neighborhood Health Services Corporation

NJ

Reporting Subrecipient Monitoring § 200.512

Identify a new Auditing firm with proven experience working with FQHCs and their unique compliance requirements and revenue sources. Hire consultant to oversee the Audit process Engage Hough Consults to serve as the Interim CFO in response to the resignation of previous finance consultant. This cons...

Identify a new Auditing firm with proven experience working with FQHCs and their unique compliance requirements and revenue sources. Hire consultant to oversee the Audit process Engage Hough Consults to serve as the Interim CFO in response to the resignation of previous finance consultant. This consultant will review and address finance/Grants compliance gaps, review policies, create audit compliant month end workflows, oversee hiring of financial team. Hough Consults to train new finance team which includes the permanent CFO, accounts payable staff and NH executive team on new policies and procedures. Audit, Tax filing and Grant deadlines to be tracked by the VP/CFO

View Audit 406356

Finding 1222773 (2025-002)

Material Weakness 2025

CITY STAPLES

MN

Reporting Significant Deficiency

Preparation of Financial Statements and Related Footnotes

View Audit 406340

Finding 1222773 (2025-002)

Material Weakness 2025

CITY STAPLES

MN

Reporting Significant Deficiency

Recommendation: This control deficiency is not unusual in a small city. However, it is the responsibility of management and the Council to decide whether to accept the degree of risk associated with this condition based on the cost of correction and other considerations.

View Audit 406340

Finding 1222773 (2025-002)

Material Weakness 2025

CITY STAPLES

MN

Reporting Significant Deficiency

Management’s Response and Actions Planned: The City’s management is aware of this significant deficiency. Management reviews and approves the draft annual audited financial statements and distributes them to the users. For entities of this size, it generally is not practical to obtain the internal e...

Management’s Response and Actions Planned: The City’s management is aware of this significant deficiency. Management reviews and approves the draft annual audited financial statements and distributes them to the users. For entities of this size, it generally is not practical to obtain the internal expertise needed to handle all aspects of the external financial reporting. Management recognizes this and feels it is effectively handling its reporting responsibilities with the procedures described above.

View Audit 406340

Finding 1222756 (2025-001)

Material Weakness 2025

Southwest Developmental Services, Inc.

KS

HUD Housing Programs Special Tests & Provisions Cash Management

2025-001 Finding SDSI Housing Corporation, Inc. (SDSI Housing) received reimbursement from the reserve for replacements of $135,824 for roof repairs that were previously funded with insurance proceeds. The reserve for replacements is under funded by $135,824 due to the reimbursement of ineligible it...

2025-001 Finding SDSI Housing Corporation, Inc. (SDSI Housing) received reimbursement from the reserve for replacements of $135,824 for roof repairs that were previously funded with insurance proceeds. The reserve for replacements is under funded by $135,824 due to the reimbursement of ineligible items. A reimbursement request was submitted for major roof repairs which are traditionally contemplated as eligible for draws under HUD Occupancy Handbook 4350.3 REV-1. However, management did not consider the fact that such repairs had already been funded by insurance proceeds, so the major roof repairs resulted in no cost to the Project. Comments on Finding and Recommendations Management agrees with the finding and recomendations. Actions Taken Management returned ineligible funds of $135,824 to reserve for replacements on April 16, 2026.

View Audit 406339

Finding 1222755 (2025-003)

Material Weakness 2025

The Order of Fishermen Ministry Head Start Program, Inc.

MI

Questioned Costs Subrecipient Monitoring Material Weakness § 200.501 § 200.512 § 200.514

Condition – The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended June 30, 2025. Planned Corrective Action – The Agency will take all reasonable measures to work with the new auditors to complete the audit process and submit the data coll...

Condition – The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended June 30, 2025. Planned Corrective Action – The Agency will take all reasonable measures to work with the new auditors to complete the audit process and submit the data collection report within the required time period. Anticipated Date of Correction – The 2026 data collection form for the year ended June 30, 2026, will be issued to GSA within the required deadline of the earlier of thirty days after issuance of the 2026 audit or prior to March 31, 2027. Point of Contact: James Williams, Fiscal Officer/Program Director

View Audit 406338

Finding 1222692 (2025-001)

Material Weakness 2025

Scranton Primary Health Care Center INC

PA

Reporting

SCRANTON PRIMARY HEALTH CARE CENTER INC IN FUTURE FILINGS OF THE DATA COLLECTION FORM AND REPORTING PACKAGE WILL OBTAIN AND COMPILE ON A TIMELY BASIS TO ALLOW THE REPORT TO BE FILED NO LATER THAN NINE MONTHS AFTER THE END OF THE AUDIT PERIOD OR EXTENDED PERIOD ALLOWED BY THE OFFICE OF MANAGEMENT AND...

SCRANTON PRIMARY HEALTH CARE CENTER INC IN FUTURE FILINGS OF THE DATA COLLECTION FORM AND REPORTING PACKAGE WILL OBTAIN AND COMPILE ON A TIMELY BASIS TO ALLOW THE REPORT TO BE FILED NO LATER THAN NINE MONTHS AFTER THE END OF THE AUDIT PERIOD OR EXTENDED PERIOD ALLOWED BY THE OFFICE OF MANAGEMENT AND BUDGET.

View Audit 406301

Finding 1222687 (2025-004)

Material Weakness 2025

Powell County

MT

Reporting

FINDING 2025-004: Audit report deadline Response: Audit information will be completed and delivered to auditor in a timelier manner by Powell County Finance Officer.

View Audit 406261

Finding 1222684 (2025-002)

Material Weakness 2025

Mazzoni Center

PA

Reporting § 200.302 § 200.328

Material Weakness in Internal Control over Compliance and Compliance - Reporting Federal Program: 93.939- HIV Prevention Activities: Non-Governmental Organization Based Federal Agency: U.S. Department of Health and Human Services. Award Number: NU65PS923746 Fiscal Year: July 1, 2024 – June 30, 2025 ...

Material Weakness in Internal Control over Compliance and Compliance - Reporting Federal Program: 93.939- HIV Prevention Activities: Non-Governmental Organization Based Federal Agency: U.S. Department of Health and Human Services. Award Number: NU65PS923746 Fiscal Year: July 1, 2024 – June 30, 2025 Recommendation: We recommend that management implement procedures to ensure that expenditures reported on the Federal Financial Report reflect actual costs incurred during the reporting period and are supported by appropriate documentation. Staff responsible for preparing the Federal Financial Report should be trained in federal reporting requirements to ensure compliance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: There is not currently a clear internal procedure on how to complete the Federal Financial Reports. This will be added to the finance department procedures and will be trained to all staff who will be responsible for this reporting. Name of the contact person responsible for corrective action: Simon Trowell, Chief Executive Officer. Planned completion date for corrective action plan: June 30, 2026

View Audit 406259

Finding 1222670 (2025-008)

Material Weakness 2025

UNITED COMMUNITY MINISTRIES, INC.

VA

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

2025-008 Auditor’s Recommendation: We recommend the organization strengthen its internal controls over federal financial reporting by establishing and documenting procedures requiring that all reports submitted to federal awarding agencies or pass-through entities be prepared using actual expenditur...

2025-008 Auditor’s Recommendation: We recommend the organization strengthen its internal controls over federal financial reporting by establishing and documenting procedures requiring that all reports submitted to federal awarding agencies or pass-through entities be prepared using actual expenditures recorded in the accounting system. These procedures should include a reconciliation of reported amounts to the general ledger and supporting documentation prior to submission, as well as an independent review process to ensure reported information is accurate, complete, and compliant with Uniform Guidance requirements. Corrective Action: UCM will develop and implement written procedures requiring that all financial reports submitted to federal awarding agencies or pass-through entities are prepared using actual expenditures recorded in UCM’s accounting system. Reported amounts will be reconciled to the general ledger and supported by appropriate documentation before submission, including general ledger detail, payroll records, accounts payable records, allocation schedules, invoices, receipts, proof of payment, and other records supporting the reported costs. UCM will implement a federal financial reporting checklist to document preparation, reconciliation, and review each report. The checklist will require verification that reported costs agree to actual expenditures, are recorded in the correct reporting period, are charged to the correct federal award, are supported by documentation, and are consistent with award terms and Uniform Guidance requirements. A qualified individual independent of the report preparation process will review and approve reports before submission, and evidence of review will be retained. Responsible for Corrective Action: Shruti Jha, Senior Director of Finance Gina Macanlalay, Director of Family Achievement Program Laura D’Ambrogi, Grants Manager Independent Reviewer (CEO, Finance Committee Chair, or another qualified reviewer) Anticipated Completion Date: December 31, 2026

View Audit 406238

Finding 1222664 (2025-003)

Material Weakness 2025

City of Watertown

SD

Internal Control / Segregation of Duties Questioned Costs Material Weakness

Department of Treasury, Passed through the Department of Agriculture and Natural Resources Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Finding Summary: During the engagement, Eide Bailly LLP noted the annual project and expenditure repor...

Department of Treasury, Passed through the Department of Agriculture and Natural Resources Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Finding Summary: During the engagement, Eide Bailly LLP noted the annual project and expenditure report submitted during the year ended December 31, 2025, was not reviewed prior to submission and had amounts reported that did not agree to the general ledger system of the City. Responsible Individuals: Kristen Bobzien, Chief Financial Officer Corrective Action Plan: The City will put procedures in place to ensure the annual project and expenditure report is reviewed for accuracy prior to submission. Anticipated Completion Date: December 31, 2026

View Audit 406234

Finding 1222652 (2025-002)

Material Weakness 2025

Score Association

VA

Reporting Questioned Costs

SCORE believes that this finding stems from exceptional circumstances that occurred during fiscal year 2025 related to the interruption of federal funding. SCORE expensed the last of the authorized fiscal year 2025 federal award funds in March 2025 and is still awaiting authorization for the remaind...

SCORE believes that this finding stems from exceptional circumstances that occurred during fiscal year 2025 related to the interruption of federal funding. SCORE expensed the last of the authorized fiscal year 2025 federal award funds in March 2025 and is still awaiting authorization for the remainder of the appropriated funds under the fiscal year 2025 award. As a result, SCORE was not able to continue submitting monthly draw requests that included the corresponding Detailed Expenditure Worksheets (DEWs). However, in accordance with the Notice of Award requirements, SCORE continued to prepare and submit quarterly financial reports reflecting expenditures that had been earmarked for federal reimbursement. Because the corresponding DEWs and draw requests could not be submitted while federal funding authorization remained pending, these reports could not be fully reconciled to the DEWs that have not yet been filed. Management acknowledges the auditors’ recommendation and will strengthen internal controls around the reconciliation of monthly and quarterly reporting. SCORE will implement enhanced reconciliation procedures to ensure that future reimbursement requests are fully reconciled prior to submission and will establish a documented contingency procedure for reporting periods in which federal funding authorization or reimbursement processing is delayed.

View Audit 406219

Finding 1222640 (2025-004)

Material Weakness 2025

Jones County Junior College

MS

Student Financial Aid Subrecipient Monitoring Reporting § 200.303

The College acknowledges the finding and agrees that reporting to the Common Origination and Disbursement (COD) system must be accurate, complete, and submitted within required timeframes. The condition resulted from the absence of formal procedures and controls to validate key data elements and mon...

The College acknowledges the finding and agrees that reporting to the Common Origination and Disbursement (COD) system must be accurate, complete, and submitted within required timeframes. The condition resulted from the absence of formal procedures and controls to validate key data elements and monitor reporting timeliness. The College is in the process of implementing enhanced controls over COD reporting. The Office of Financial Aid will develop and formalize written procedures governing the reconciliation of awarding and disbursement activity with COD reporting, including defined responsibilities, documentation standards, and review requirements. The College will also engage third-party consultants to review current processes and assist with system enhancements. System configuration and process improvements will be implemented to support the automation of award and disbursement reporting through PeopleSoft. The Office of Financial Aid will implement quality control measures, including systematic validations and documented supervisory review, to ensure accuracy, consistency, and compliance in COD reporting. Implementation of these procedures began in April 2026 and was not in place for the full fiscal year. Fiscal year 2026 represents a transition period during which controls are being implemented and refined. Full implementation is expected for the 2026–2027 award year. These actions are intended to ensure that COD reporting is accurate, timely, and properly controlled, and to prevent recurrence.

View Audit 406216

Finding 1222620 (2025-002)

Material Weakness 2025

Disability Rights South Dakota

SD

Reporting

Finding No. 2025-002: Adjustments to Financial Statements and Schedule of Expenditures of Federal Awards Responsible Individuals: Carrie Watts, Fiscal and Grant Manager Corrective Action Plan: The Organization will seek outside consulting to train existing personnel on accrual accounting and assista...

Finding No. 2025-002: Adjustments to Financial Statements and Schedule of Expenditures of Federal Awards Responsible Individuals: Carrie Watts, Fiscal and Grant Manager Corrective Action Plan: The Organization will seek outside consulting to train existing personnel on accrual accounting and assistance with year-end adjustments. Anticipated Completion Date: September 30, 2026

View Audit 406207

Finding 1222605 (2025-002)

Material Weakness 2025

Lee Health System, Inc.

FL

Internal Control / Segregation of Duties Reporting Questioned Costs § 200.512

2025-002: Reporting – Submission of the Data Collection Form Information on Federal Programs Federal Emergency Management Agency Assistance Listing Number: 97.036 Assistance Listing Name: Disaster Grants - Public Assistance passed through Florida Division of Emergency Management U.S. Department of H...

2025-002: Reporting – Submission of the Data Collection Form Information on Federal Programs Federal Emergency Management Agency Assistance Listing Number: 97.036 Assistance Listing Name: Disaster Grants - Public Assistance passed through Florida Division of Emergency Management U.S. Department of Health and Human Services Assistance Listing Number: 93.778 Assistance Listing Name: Medicaid Cluster – Medical Assistance Program Management will implement and maintain the following corrective actions:  Management has added a validation step with a secondary review by another team member to validate that all steps relating to submission have been clearly completed.  Management has also added this to our reporting checklist that is part of the Single Audit Process Narrative. Responsible Party: Controller, under the oversight of the Vice President of Financial Services/Chief Financial Officer, in coordination with the Grants function. Completion date: June 30, 2026

View Audit 406201

Finding 1222601 (2025-003)

Material Weakness 2025

City of Chillicothe

OH

Reporting § 200.328 § 200.329

The City will review due dates to ensure proper reporting requirements are met.

View Audit 406187

Finding 1222570 (2025-001)

Material Weakness 2025

Prairie Opportunity, Inc.

MS

Reporting Subrecipient Monitoring § 200.512

AUDITEE'S CORRECTIVE ACTION PLAN June 23, 2026 U. S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Prairie Opportunity, Inc., respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting form: Brown, Ewing & Co., P.A. 30...

AUDITEE'S CORRECTIVE ACTION PLAN June 23, 2026 U. S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Prairie Opportunity, Inc., respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting form: Brown, Ewing & Co., P.A. 308 Highland Park Cove, Ridgeland, MS 39157. Audit period: Year Ended September 30, 2025. The findings from the September 30, 2025 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. Section 1 of the schedule, Summary of Audit's Results, does not include findings and is not addressed. Section 3: Findings and Questioned Costs - Major Federal Award Program Audit FINDING 2025-001 FAILURE TO SUBMIT THE DATA COLLECTION FORM AND AUDIT REPORT TO THE FEDERAL AUDIT CLEARINGHOUSE TIMELY Condition: The auditee did not submit the required Data Collection Form (DCF) and reporting package to the Federal Audit Clearinghouse (FAC) within the timeframe mandated by federal regulations. The submission was made after the required deadline of June 30, 2025. Action Taken: Manangement of Prairie Opportunity, Inc. will implement internal administartive contol procedures and policies to ensure that the data collection form and the annual audit is submitted to the federal clearinghouse in a timely manner. If you have any questions regarding this plan, please call me at (662) 323-3397. Sincerely, Tomeka Rhine Tomeka Rhine, Executive Director

View Audit 406172

Finding 1222569 (2025-001)

Material Weakness 2025

Miami-Dade Aviation Department

FL

Reporting Internal Control / Segregation of Duties

The Community Services Department (CSD) acknowledges the untimely submission of the October 2024 report. As indicated in the finding letter, this matter was an isolated event and not a systemic or programmatic concern. The delay resulted from temporary staffing shortages and leadership transitions d...

The Community Services Department (CSD) acknowledges the untimely submission of the October 2024 report. As indicated in the finding letter, this matter was an isolated event and not a systemic or programmatic concern. The delay resulted from temporary staffing shortages and leadership transitions during a high-demand fiscal period, rather than from deficiencies in internal controls. The Department maintains appropriate internal controls, clearly assigned responsibilities, and supervisory review processes. With stabilized leadership and strengthened monitoring procedures in place, the County is confident that timely grant reporting will continue moving forward. Although the County’s internal control structure remains sound and responsibilities are clearly assigned, the following measures have been reinforced to ensure continuity during future staffing transitions or high-volume periods: 1. Affirmation of Existing Internal Controls o Confirmed that established internal controls over grant reporting remain appropriate and effective. o Reaffirmed clearly designated staff responsible for preparation, review, and submission of grant reports. 2. Enhanced Deadline Monitoring o Strengthened use of a centralized tracking log 3. Backup Coverage and Cross-Training o Identified backup personnel to ensure continuity during staff vacancies or absences. 4. Strengthened Management Oversight o With the new Fiscal Division Director in place, oversight and monitoring of grant reporting timelines have been reinforced. Management now conducts proactive check-ins during peak workload periods, including Fiscal Close-Out. Responsible Parties: Fiscal Division Director, Fiscal Unit Management, Assigned Accountant 3 and 2. Implementation and Completion Date: Corrective actions began in November 2024 following stabilization of leadership positions. Enhanced monitoring and oversight procedures are consistently reviewed, evaluated, and refined throughout the year to increase operational efficiency, strengthen internal controls, and ensure continued compliance with all grant reporting requirements.

View Audit 406171

Finding 1222568 (2025-010)

Material Weakness 2025

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

School Nutrition Programs Reporting

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit finding presented by the auditors regarding the timeliness of FFATA reporting to the FSRS portal under the Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559). As noted by the auditors, PRDE sta...

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit finding presented by the auditors regarding the timeliness of FFATA reporting to the FSRS portal under the Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559). As noted by the auditors, PRDE staff have continued implementing corrective measures in response to this requirement since it was first identified as Finding 2024-011. The delays identified during the current fiscal year were related primarily to the reporting of contract amendments, and the PRDE recognizes the need to fully resolve this repeat condition. The Child Nutrition program has already developed and begun implementing its corrective action plan, which includes reinforced monitoring procedures and designated tracking responsibilities for all subaward and contract amendment reporting obligations. With these measures in place, the PRDE expects to submit all required FFATA reports for subaward obligations and contract amendments within the timeframe established under 2 CFR Part 170 going forward. IMPLEMENTATION DATE Implemented on Fiscal Year 2025-2026 RESPONSIBLE PERSON Odalis Menard AESAN Director Lourdes García Santiago AESAN Sub-Director

View Audit 406169

Finding 1222562 (2025-009)

Material Weakness 2025

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

Reporting § 200.512

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the late submission of the Data Collection Form and Reporting Package for the fiscal year ended June 30, 2025, and recognizes the importance of timely compliance with 2 CFR §200.512(a)(1). The PRDE respectfull...

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the late submission of the Data Collection Form and Reporting Package for the fiscal year ended June 30, 2025, and recognizes the importance of timely compliance with 2 CFR §200.512(a)(1). The PRDE respectfully offers the following additional context regarding the factors that contributed to the delay, several of which were outside the Department's control. First, the PRDE acknowledges that the reconciliation of expenditures related to certain federally funded disaster recovery programs administered outside the Department — specifically the CDBG-DR (ALN 14.228) and Disaster Grants – Public Assistance (ALN 97.036) programs — presented recurring challenges. Information regarding these expenditures is provided to the PRDE by external program administrators, and the data received did not always arrive with sufficient clarity to allow the Department to perform the corresponding adjustments to the SEFA without additional follow-up and clarification. Second, and as the principal factor affecting the submission timeline, the 2025 OMB Compliance Supplement was not released until November 2025, substantially later than its customary release date and later than in prior audit cycles. The Department's external auditors communicated to the PRDE that audit testing of major programs could not begin until the Compliance Supplement was available, since it establishes the compliance requirements and audit procedures applicable to each major program. As a direct consequence of this delay, which is publicly documented and affected single audits nationwide, the available window to complete required testing was substantially compressed, and an extension of the submission deadline was requested due to the limited time remaining to perform the necessary audit procedures. The PRDE notes that while it continues to strengthen its internal procedures for accumulating and reconciling SEFA-related information — particularly for programs administered by external entities — the timing of the late submission for this audit cycle was significantly influenced by the delayed availability of the Compliance Supplement, a circumstance affecting auditees and auditors broadly and not unique to the Department. IMPLEMENTATION DATE Fiscal Year 2026-2027 RESPONSIBLE PERSON Evelyn E. Rodríguez Cardé, MBA Director of Finance

View Audit 406169

Finding 1222518 (2025-002)

Material Weakness 2025

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

Equipment & Real Property Management Internal Control / Segregation of Duties Questioned Costs § 200.302 § 200.403

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) accepts the finding identified by the auditors regarding the incorrect coding of five (5) reimbursement payments for equipment purchases in account E6170 (Donations and Contributions to Private Entities), rather than in th...

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) accepts the finding identified by the auditors regarding the incorrect coding of five (5) reimbursement payments for equipment purchases in account E6170 (Donations and Contributions to Private Entities), rather than in the appropriate E5000-series accounts, and the omission of said assets from the institutional property register. The PRDE has initiated the necessary corrective actions to address this deficiency. Specifically, all assets included within the affected reimbursement transactions have been identified, and a detailed inventory is being prepared in which each asset is classified according to the capitalization criteria established in the Restart Program Fiscal Process Guide (unit cost equal to or greater than $500.00 and useful life greater than two (2) years). This inventory distinguishes between capitalizable equipment (E5000 series) and non-capitalizable equipment (E4414), in accordance with applicable regulatory requirements. Once finalized, the inventory file will be submitted to the PRDE’s Office of Property for review and mass upload into the institutional property register, ensuring that all assets acquired with Restart Program funds are properly recorded under PRDE ownership, in compliance with Section 102(h)(3) of the 2018 Hurricane Relief Act and the requirements of 2 CFR §200.302(b)(3)(4). IMPLEMENTATION DATE Fiscal Year 2026-2027 RESPONSIBLE PERSON Edgar Delgado Serrano Interim Director of Federal Affairs Office

View Audit 406169

Corrective Action Plans

Filters