Corrective Action Plans

Finding 572319 (2023-054)

Material Weakness 2023

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 Review the accounting system to ensure consistency with SF– 425 reporting. Establish a protocol for the review and approval of financial reports. Designate a financial compliance officer to validate reports prior to submission. IMPLEMENTATION DATE During Fiscal Year 20...

VIEWS OF RESPONSIBLE OFFICIALS Review the accounting system to ensure consistency with SF– 425 reporting. Establish a protocol for the review and approval of financial reports. Designate a financial compliance officer to validate reports prior to submission. IMPLEMENTATION DATE During Fiscal Year 2025-2026. RESPONSIBLE PERSON Administration for Families and Children (ADFAN, by the Spanish Acronym)

View Audit 363366

Finding 572318 (2023-053)

Material Weakness 2023

Commonwealth of Puerto Rico - Department of the Family

PR

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

VIEWS OF RESPONSIBLE OFFICIALS Draft and approve eligibility criteria in accordance with federal reporting requirements. Implement monthly reconciliations between TANF and internal records. Establish a report review committee with designated personnel. It’s important to note that administrative expe...

VIEWS OF RESPONSIBLE OFFICIALS Draft and approve eligibility criteria in accordance with federal reporting requirements. Implement monthly reconciliations between TANF and internal records. Establish a report review committee with designated personnel. It’s important to note that administrative expenses are listed under Letter F of the Family Preservation program. Other expenses that could be considered administrative under different letters—such as materials, payroll, etc.—are related to direct services, since the employees being paid under these accounts are social workers and the materials are used for activities that are part of the direct service. IMPLEMENTATION DATE During Fiscal Year 2025-2026. RESPONSIBLE PERSON Administration for Families and Children (ADFAN, by the Spanish Acronym)

View Audit 363366

Finding 572317 (2023-052)

Material Weakness 2023

Commonwealth of Puerto Rico - Department of the Family

PR

Subrecipient Monitoring Material Weakness Reporting § 200.302 § 200.305 § 200.334 § 200.335 § 200.336

VIEWS OF RESPONSIBLE OFFICIALS ADSEF has controls and procedural manuals related to data collection. As part of the digitization project process, ADSEF seeks to standardize procedures and ensure the organization and proper location of documents within the files. Annexes IMPLEMENTATION DATE Up to Dat...

VIEWS OF RESPONSIBLE OFFICIALS ADSEF has controls and procedural manuals related to data collection. As part of the digitization project process, ADSEF seeks to standardize procedures and ensure the organization and proper location of documents within the files. Annexes IMPLEMENTATION DATE Up to Date RESPONSIBLE PERSON Administration for Socioeconomic Development of the Family (ADSEF, by its Spanish Acronym) AUDITORS’ COMMENT ADSEF did not provide us with a manual describing the data collection process as requested during the auditing procedures. An unsigned and undated Manual was attached to the Corrective Action Plan. Also, ADSEF was required to provide us with the corresponding participant worksheet appendix and the physical file to corroborate the information included in the report. ADSEF provided us with evidence of the hand-completed forms; however, we were not provided with the physical files to validate the information included in each document. This represents a scope limitation.

View Audit 363366

Finding 572316 (2023-051)

Material Weakness 2023

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 It is recommended, among other things, to establish internal controls that provide certainty, effective monitoring, data validation, and accountability for those employees who execute the reporting processes. To this end, the personnel responsible will be convened and ...

VIEWS OF RESPONSIBLE OFFICIALS It is recommended, among other things, to establish internal controls that provide certainty, effective monitoring, data validation, and accountability for those employees who execute the reporting processes. To this end, the personnel responsible will be convened and written processes will be issued to expedite the information requests and ensure their rapid submission. This will be in accordance with both state and federal regulations. Once the agreements are finalized, they will be submitted to the auditing firm. IMPLEMENTATION DATE During Fiscal Year 2025-2026. RESPONSIBLE PERSON Administration for Socioeconomic Development of the Family (ADSEF, by its Spanish Acronym)

View Audit 363366

Finding 572312 (2023-050)

Significant Deficiency 2023

Commonwealth of Puerto Rico - Department of the Family

PR

Subrecipient Monitoring Reporting Significant Deficiency

VIEWS OF RESPONSIBLE OFFICIALS 1. Assess the need to hire additional staff or reallocate existing resources to ensure the necessary capacity for continued FFATA/FSRS compliance. 2. Create a detailed and comprehensive Procedures Manual for FFATA/FSRS management and reporting, including steps for effe...

VIEWS OF RESPONSIBLE OFFICIALS 1. Assess the need to hire additional staff or reallocate existing resources to ensure the necessary capacity for continued FFATA/FSRS compliance. 2. Create a detailed and comprehensive Procedures Manual for FFATA/FSRS management and reporting, including steps for effective implementation of the process. 3. Develop and deliver a mandatory training program for all Office of Legal Affairs staff, and any other staff involved in the administration or monitoring of sub-awards. 4. Establish regular monitoring to ensure that FSRS reporting is conducted in a timely and accurate manner. IMPLEMENTATION DATE During Fiscal Year 2025-2026. RESPONSIBLE PERSON Office of Legal Affairs Administration for the Care and Comprehensive Development of Children (ACUDEN, by its Spanish Acronym)

View Audit 363366

Finding 572311 (2023-049)

Material Weakness 2023

Commonwealth of Puerto Rico - Department of the Family

PR

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.302 § 200.303 § 200.305 § 200.334 § 200.335

VIEWS OF RESPONSIBLE OFFICIALS It is recommended, among other things, to establish internal controls that provide certainty, effective monitoring, data validation, and accountability for those employees who execute the reporting processes. To this end, the personnel responsible will be convened and ...

VIEWS OF RESPONSIBLE OFFICIALS It is recommended, among other things, to establish internal controls that provide certainty, effective monitoring, data validation, and accountability for those employees who execute the reporting processes. To this end, the personnel responsible will be convened and written processes will be issued to expedite the information requests and ensure their rapid submission. This will be in accordance with both state and federal regulations. Once the agreements are finalized, they will be submitted to the auditing firm. IMPLEMENTATION DATE During Fiscal Year 2025-2026. RESPONSIBLE PERSON Administration for Socioeconomic Development of the Family (ADSEF, by its Spanish Acronym)

View Audit 363366

Finding 572295 (2023-048)

Material Weakness 2023

Commonwealth of Puerto Rico - Department of the Family

PR

Reporting § 200.512

VIEWS OF RESPONSIBLE OFFICIALS We will have dedicated personnel assigned to promptly respond to all required documentation and paperwork, both federally and non-federally funded. In this way, we will remain firmly committed to complying with applicable regulations. IMPLEMENTATION DATE During Fiscal ...

VIEWS OF RESPONSIBLE OFFICIALS We will have dedicated personnel assigned to promptly respond to all required documentation and paperwork, both federally and non-federally funded. In this way, we will remain firmly committed to complying with applicable regulations. IMPLEMENTATION DATE During Fiscal Year 2025-2026. RESPONSIBLE PERSON Office of the Secretariat and Administrations

View Audit 363366

Finding 572279 (2023-047)

Material Weakness 2023

Commonwealth of Puerto Rico - Department of the Family

PR

Subrecipient Monitoring Reporting § 200.510

VIEWS OF RESPONSIBLE OFFICIALS Regarding this finding as it relates to SEFA preparation, we similarly note that grant-level accounting and internal control procedures are supported by PRIFAS. Moreover, the grant-level accounting and internal control are being strengthened through initiatives set for...

VIEWS OF RESPONSIBLE OFFICIALS Regarding this finding as it relates to SEFA preparation, we similarly note that grant-level accounting and internal control procedures are supported by PRIFAS. Moreover, the grant-level accounting and internal control are being strengthened through initiatives set forth in the 2024 Certified Fiscal Plan, certified by FOMB. Section 3.1.2.4 (“Improve federal funds management”) calls for the consolidation of grant management under a centralized financial framework. This will improve transparency and visibility of federal and non-federal funds, enable accurate budgeting aligned with strategic priorities, and ensure compliance requirements are clearly understood by both individual agencies and the Puerto Rico Treasury Department. In conjunction with the ERP rollout, the Plan calls for establishing a central Grants Management Office tasked with enhancing oversight and compliance, supporting corrective-action follow-up on single audit findings, building local capacity to maximize federal funding, and codifying best practices. IMPLEMENTATION DATE During Fiscal Year 2025-2026. RESPONSIBLE PERSON Office of the Secretariat and Administrations

View Audit 363366

Finding 572263 (2023-046)

Material Weakness 2023

Commonwealth of Puerto Rico - Department of the Family

PR

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

VIEWS OF RESPONSIBLE OFFICIALS We wish to clarify that the Puerto Rico Department of the Family does not maintain a standalone accounting system but rather records all financial transactions directly in the Puerto Rico Integrated Financial Accounting System (PRIFAS), the centralized accounting platf...

VIEWS OF RESPONSIBLE OFFICIALS We wish to clarify that the Puerto Rico Department of the Family does not maintain a standalone accounting system but rather records all financial transactions directly in the Puerto Rico Integrated Financial Accounting System (PRIFAS), the centralized accounting platform hosted by the Puerto Rico Treasury Department. Consequently, it is not necessary for PRDF to “update its accounting practices” or “implement” a new financial management system, since PRIFAS already provides a comprehensive and reporting framework that meets state and local agreement requirements. However, it is important to mention that the Certified Fiscal Plan for 2024, certified by the Financial Oversight and Management Board (FOMB), in Section 3.1.7.5, explicitly prioritizes the implementation of an enterprise resource planning (ERP) system to further centralize and streamline financial management across Commonwealth agencies. Once deployed, this ERP will enhance financial transparency, unify budgeting and procurement processes, support real-time transaction recording, and deliver centralized reporting consistent with public sector accounting standards, thereby addressing the core objectives of this finding. IMPLEMENTATION DATE Awaiting system implementation. RESPONSIBLE PERSON Office of the Secretariat and Administrations

View Audit 363366

Finding 572260 (2023-043)

Material Weakness 2023

Commonwealth of Puerto Rico - Department of the Family

PR

Matching / Level of Effort / Earmarking Reporting § 200.303

VIEWS OF RESPONSIBLE OFFICIALS ADSEF establishes eligibility criteria and guidelines for the granting of incentives and bonuses related to compensated efforts assigned to the TANF program. IMPLEMENTATION DATE Up to date RESPONSIBLE PERSON Administration for Socioeconomic Development of the Family (A...

VIEWS OF RESPONSIBLE OFFICIALS ADSEF establishes eligibility criteria and guidelines for the granting of incentives and bonuses related to compensated efforts assigned to the TANF program. IMPLEMENTATION DATE Up to date RESPONSIBLE PERSON Administration for Socioeconomic Development of the Family (ADSEF, by its Spanish Acronym)

View Audit 363366

Finding 572259 (2023-042)

Material Weakness 2023

Commonwealth of Puerto Rico - Department of the Family

PR

Matching / Level of Effort / Earmarking Reporting

VIEWS OF RESPONSIBLE OFFICIALS It is recommended, among other things, to establish internal controls that provide certainty, effective monitoring, data validation, and accountability for those employees who execute the reporting processes. To this end, the personnel responsible will be convened and ...

VIEWS OF RESPONSIBLE OFFICIALS It is recommended, among other things, to establish internal controls that provide certainty, effective monitoring, data validation, and accountability for those employees who execute the reporting processes. To this end, the personnel responsible will be convened and written processes will be issued to expedite the information requests and ensure their rapid submission. This will be in accordance with both state and federal regulations. Once the agreements are finalized, they will be submitted to the auditing firm. IMPLEMENTATION DATE During Fiscal Year 2025-2026. RESPONSIBLE PERSON Administration for Socioeconomic Development of the Family (ADSEF, by its Spanish Acronym) continue

View Audit 363366

Finding 572256 (2023-040)

Material Weakness 2023

Commonwealth of Puerto Rico - Department of the Family

PR

Subrecipient Monitoring Eligibility Material Weakness § 200.334 § 200.337

VIEWS OF RESPONSIBLE OFFICIALS As part of the digitization project process, ADSEF seeks to standardize procedures and ensure the organization and proper location of documents within the files. For this Digitalization project we have available matching funds of approximately 7 million dollars. IMPLEM...

VIEWS OF RESPONSIBLE OFFICIALS As part of the digitization project process, ADSEF seeks to standardize procedures and ensure the organization and proper location of documents within the files. For this Digitalization project we have available matching funds of approximately 7 million dollars. IMPLEMENTATION DATE Awaiting System Implementation RESPONSIBLE PERSON Administration for Socioeconomic Development of the Family (ADSEF, by its Spanish Acronym)

View Audit 363366

Finding 572255 (2023-039)

Material Weakness 2023

Commonwealth of Puerto Rico - Department of the Family

PR

Subrecipient Monitoring Eligibility Material Weakness § 200.303

VIEWS OF RESPONSIBLE OFFICIALS ADSEF will assess and develop, together with program directors and program specialists, retraining sessions aimed at technical staff and supervisors. As part of its ongoing digitization efforts, ADSEF has incorporated the replacement of the Social Security number with ...

VIEWS OF RESPONSIBLE OFFICIALS ADSEF will assess and develop, together with program directors and program specialists, retraining sessions aimed at technical staff and supervisors. As part of its ongoing digitization efforts, ADSEF has incorporated the replacement of the Social Security number with a unique identification number. IMPLEMENTATION DATE December 2025 RESPONSIBLE PERSON Administration for Socioeconomic Development of the Family (ADSEF, by its Spanish Acronym) continue

View Audit 363366

Finding 572253 (2023-038)

Material Weakness 2023

Commonwealth of Puerto Rico - Department of the Family

PR

Subrecipient Monitoring Eligibility Material Weakness § 200.303

VIEWS OF RESPONSIBLE OFFICIALS ADSEF will assess and develop, together with program directors and program specialists, retraining sessions aimed at technical staff and supervisors. As part of its ongoing digitization efforts, ADSEF has incorporated the replacement of the Social Security number with ...

VIEWS OF RESPONSIBLE OFFICIALS ADSEF will assess and develop, together with program directors and program specialists, retraining sessions aimed at technical staff and supervisors. As part of its ongoing digitization efforts, ADSEF has incorporated the replacement of the Social Security number with a unique identification number. Anexes: • Comunicación Límite de tiempo de Beneficios Categoría C • Comunicación sobre periodo de certificación Categoría C, próximos a cumplir los 60 meses. IMPLEMENTATION DATE December 2025 RESPONSIBLE PERSON Administration for Socioeconomic Development of the Family (ADSEF, by its Spanish Acronym)

View Audit 363366

Finding 572248 (2023-036)

Material Weakness 2023

Commonwealth of Puerto Rico - Department of the Family

PR

Subrecipient Monitoring Eligibility Material Weakness § 200.303

VIEWS OF RESPONSIBLE OFFICIALS ADSEF will assess and develop, together with program directors and program specialists, retraining sessions aimed at technical staff and supervisors. As part of its ongoing digitization efforts, ADSEF has incorporated the replacement of the Social Security number with ...

VIEWS OF RESPONSIBLE OFFICIALS ADSEF will assess and develop, together with program directors and program specialists, retraining sessions aimed at technical staff and supervisors. As part of its ongoing digitization efforts, ADSEF has incorporated the replacement of the Social Security number with a unique identification number. IMPLEMENTATION DATE December 2025 RESPONSIBLE PERSON Administration for Socioeconomic Development of the Family (ADSEF, by its Spanish Acronym)

View Audit 363366

Finding 572241 (2023-033)

Material Weakness 2023

Commonwealth of Puerto Rico - Department of the Family

PR

Subrecipient Monitoring Questioned Costs Allowable Costs / Cost Principles § 200.302 § 200.305 § 200.328 § 200.329 § 200.334

VIEWS OF RESPONSIBLE OFFICIALS It is recommended, among other things, to establish internal controls that provide certainty, effective monitoring, data validation, and accountability for those employees who execute the reporting processes. To this end, the personnel responsible will be convened and ...

VIEWS OF RESPONSIBLE OFFICIALS It is recommended, among other things, to establish internal controls that provide certainty, effective monitoring, data validation, and accountability for those employees who execute the reporting processes. To this end, the personnel responsible will be convened and written processes will be issued to expedite the information requests and ensure their rapid submission. This will be in accordance with both state and federal regulations. IMPLEMENTATION DATE During Fiscal Year 2025-2026. RESPONSIBLE PERSON Administration for Socioeconomic Development of the Family (ADSEF, by its Spanish Acronym)

View Audit 363366

Finding 572237 (2023-032)

Material Weakness 2023

Commonwealth of Puerto Rico - Department of the Family

PR

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness § 200.302 § 200.303 § 200.305 § 200.328 § 200.329

VIEWS OF RESPONSIBLE OFFICIALS It is recommended, among other things, to establish internal controls that provide certainty, effective monitoring, data validation, and accountability for those employees who execute the reporting processes. To this end, the personnel responsible will be convened and ...

VIEWS OF RESPONSIBLE OFFICIALS It is recommended, among other things, to establish internal controls that provide certainty, effective monitoring, data validation, and accountability for those employees who execute the reporting processes. To this end, the personnel responsible will be convened and written processes will be issued to expedite the information requests and ensure their rapid submission. This will be in accordance with both state and federal regulations. Once the agreements are finalized, they will be submitted to the auditing firm. IMPLEMENTATION DATE During Fiscal Year 2025-2026. RESPONSIBLE PERSON Administration for Socioeconomic Development of the Family (ADSEF, by its Spanish Acronym)

View Audit 363366

Finding 572232 (2023-029)

Material Weakness 2023

Commonwealth of Puerto Rico - Department of the Family

PR

Reporting Subrecipient Monitoring Internal Control / Segregation of Duties § 200.302 § 200.305 § 200.328 § 200.329 § 200.334

VIEWS OF RESPONSIBLE OFFICIALS It is recommended, among other things, to establish internal controls that provide certainty, effective monitoring, data validation, and accountability for those employees who execute the reporting processes. To this end, the personnel responsible will be convened and ...

VIEWS OF RESPONSIBLE OFFICIALS It is recommended, among other things, to establish internal controls that provide certainty, effective monitoring, data validation, and accountability for those employees who execute the reporting processes. To this end, the personnel responsible will be convened and written processes will be issued to expedite the information requests and ensure their rapid submission. This will be in accordance with both state and federal regulations. Once the agreements are finalized, they will be submitted to the auditing firm. IMPLEMENTATION DATE During Fiscal Year 2025-2026. RESPONSIBLE PERSON Administration for Socioeconomic Development of the Family (ADSEF, by its Spanish Acronym)

View Audit 363366

Finding 572217 (2023-003)

Significant Deficiency 2023

Galveston County Health District

TX

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking

Planned Corrective Action: We will develop internal reports to align with UDS reporting requirements. We will also create a reconciliation log to track changes and justifications. We will assign an individual to oversee data integrity and submission. Name of Contact Person: Ruth Cable, CFO, Lane Bak...

Planned Corrective Action: We will develop internal reports to align with UDS reporting requirements. We will also create a reconciliation log to track changes and justifications. We will assign an individual to oversee data integrity and submission. Name of Contact Person: Ruth Cable, CFO, Lane Baker, COO, and Tomiko Fisher, COO Anticipated completion date: October 31, 2025

View Audit 363352

Finding 572167 (2023-001)

Significant Deficiency 2023

Town of Needham

MA

Reporting Significant Deficiency Internal Control / Segregation of Duties

Re: 2023-001 Improve Internal Controls over Reporting This letter is in response to the above referenced finding in the FY2023 Single Audit. The Town acknowledges the lateness of the filing of the report for FY2023, which was due to a misunderstanding as to the requirements on the use of ARPA fund...

Re: 2023-001 Improve Internal Controls over Reporting This letter is in response to the above referenced finding in the FY2023 Single Audit. The Town acknowledges the lateness of the filing of the report for FY2023, which was due to a misunderstanding as to the requirements on the use of ARPA funds that were considered as the standard allowance for revenue loss. Similarly, a reporting delay also happened for FY2024. We have taken action to ensure the issue does not reoccur.

View Audit 363280

Finding 572094 (2023-001)

Significant Deficiency 2023

Oxford School District

MS

Cash Management Reporting School Nutrition Programs

During our Mississippi Department of Education (MDE) Administrative Review, auditors provided technical assistance on using the Edit Check Report in Mosaic to avoid underreporting or overreporting meals. Since that review, we have implemented the use of the Edit Check Report to enter reimbursable m...

During our Mississippi Department of Education (MDE) Administrative Review, auditors provided technical assistance on using the Edit Check Report in Mosaic to avoid underreporting or overreporting meals. Since that review, we have implemented the use of the Edit Check Report to enter reimbursable meals in the MARS system instead of the Claim Report. This change improves the accuracy of meal counts and reimbursement claims. Additionally, we will establish a formal review process whereby a second staff member verifies montly claims before submission to further ensure accuracy and compliance.

View Audit 363239

Finding 572045 (2023-004)

Material Weakness 2023

City of Bethel, Alaska

AK

Reporting Material Weakness § 200.512

Finding 2023-004 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Cindy Sharp, Deputy Finance Director Corrective Action Plan: Management will carefully review report deadlines and ensure that submission of reports is made before they are due. Management will...

Finding 2023-004 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Cindy Sharp, Deputy Finance Director Corrective Action Plan: Management will carefully review report deadlines and ensure that submission of reports is made before they are due. Management will also carefully review reporting requirements and ensure that requirements are adhered to. This includes the following programs: US Department of the Interior, US Department of the Treasury Federal Payment in Lieu of Taxes (PILT) and Coronavirus State and Local Fiscal Recovery Funds. Proposed Completion Date: Fiscal year 2024.

View Audit 363154

Finding 571854 (2023-004)

Material Weakness 2023

Great Lakes Recovery Centers, Inc.

MI

Reporting Questioned Costs Allowable Costs / Cost Principles

No corrective action plan is need as this was a singular one-time event involving provider relief funding from HRSA. Person(s) Responsible: Tracy Busse and Greg Toutant Timing for Implementation: N/A

View Audit 362889 Questioned Costs: $1

Finding 571853 (2023-003)

Significant Deficiency 2023

Great Lakes Recovery Centers, Inc.

MI

Questioned Costs Reporting Significant Deficiency § 200.512

GLRC is currently experiencing a delay in completion of their required audit which is causing us to miss filing to the single audit clearinghouse by June 30, 2025. We will be out of compliance for the 2024 audit but will be cathing up for meeting the June 2026 deadline for the 2025 audit. GLRC will ...

GLRC is currently experiencing a delay in completion of their required audit which is causing us to miss filing to the single audit clearinghouse by June 30, 2025. We will be out of compliance for the 2024 audit but will be cathing up for meeting the June 2026 deadline for the 2025 audit. GLRC will be engaging a new audit firm for the upcoming fiscal year. Person(s) Responsible: Tracy Busse and Greg Toutant Timing for Implementation: GLRC expects to be caught up for June 30, 2026

View Audit 362889

Finding 571806 (2023-007)

Significant Deficiency 2023

City of Ashton

IA

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking

The annual budget for fiscal year 2023-2024 was submitted late due to a computer crash. The computer had to be repaired so the report could not be completed until the computer was repaired and returned. All reports will be initialed and dated to show independent review and will be timely submitted f...

The annual budget for fiscal year 2023-2024 was submitted late due to a computer crash. The computer had to be repaired so the report could not be completed until the computer was repaired and returned. All reports will be initialed and dated to show independent review and will be timely submitted from now on.

View Audit 362824

Corrective Action Plans

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