Corrective Action Plans

Finding 565056 (2020-007)

Material Weakness 2020

VI

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.303

The Director of Engineering will sign reports submitted to the FAA as validation that the items have been reviewed. The Senior Compliance Officer serves as the record keeper for documents filed between VIPA, the FAA, and other institutions, ensuring that VIPA submits the required filings and maintai...

The Director of Engineering will sign reports submitted to the FAA as validation that the items have been reviewed. The Senior Compliance Officer serves as the record keeper for documents filed between VIPA, the FAA, and other institutions, ensuring that VIPA submits the required filings and maintains a working spreadsheet of items sent. Additionally, a tickler system has been implemented in Accounting as a reminder to submit financial reports to Engineering or the grantor.

View Audit 358984

Finding 524219 (2020-003)

Material Weakness 2020

Town of Monroeville

IN

Material Weakness Reporting Matching / Level of Effort / Earmarking § 200.302 § 200.303 § 200.328 § 200.329

FINDING 2020-003 Finding Subject: Water and Waste Disposal Systems for Rural Communities – Reporting Summary of Finding: The Town did not prepare or file the required reports, submit financial data on other forms, or submit an annual audit in lieu of the forms to the USDA. As such, there was no evid...

FINDING 2020-003 Finding Subject: Water and Waste Disposal Systems for Rural Communities – Reporting Summary of Finding: The Town did not prepare or file the required reports, submit financial data on other forms, or submit an annual audit in lieu of the forms to the USDA. As such, there was no evidence to substantiate the financial operations or the financial status of the project. Contact Person Responsible for Corrective Action: Bobbi Elston (Clerk-Treasurer) Contact Phone Number and Email Address: (260) 433-4800, 104 Allen St, Monroeville, IN 46773 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Town will implement internal controls over the reporting compliance requirement related to the Water and Waste Disposal Systems federal program based on the State Board of Accounts Uniform Internal Controls Standards for Indiana Political Subdivisions. This will include involving the Town Council to assist in verifying the Town has met reporting requirement. Anticipated Completion Date: January 1, 2025

View Audit 343416

Finding 524218 (2020-002)

Material Weakness 2020

Town of Monroeville

IN

Questioned Costs Matching / Level of Effort / Earmarking § 200.303

FINDING 2020-002 Finding Subject: Water and Waste Disposal Systems for Rural Communities - Matching Summary of Finding: The Town had not designed or implemented adequate internal controls and procedures to ensure compliance with the requirements related to the grant agreement and the Matching compli...

FINDING 2020-002 Finding Subject: Water and Waste Disposal Systems for Rural Communities - Matching Summary of Finding: The Town had not designed or implemented adequate internal controls and procedures to ensure compliance with the requirements related to the grant agreement and the Matching compliance requirement. As part of the grant agreement with the Department of Agriculture (USDA), the Town was to contribute $15,000 of local funds toward bond council. The Clerk-Treasurer posted all grant activity in Fund 810, Water Line Construction. No local funds were posted to be used to pay toward bond council. Contact Person Responsible for Corrective Action: Bobbi Elston (Clerk-Treasurer) Contact Phone Number and Email Address: (260) 433-4800, 104 Allen St, Monroeville, IN 46773 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Town will implement internal controls over the matching compliance requirement related to the Water and Waste Disposal Systems federal program based on the State Board of Accounts Uniform Internal Controls Standards for Indiana Political Subdivisions. This will include involving the Town Council to assist in verifying the Town has met matching requirement. Anticipated Completion Date: January 1, 2025

View Audit 343416 Questioned Costs: $1

Finding 504921 (2020-001)

Material Weakness 2020

City of Long Beach

CA

Reporting § 200.303 § 200.502 § 200.510

Program: Highway Planning & Construction (ALN 20.205) Finding: 2020-001 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: The Harbor Department will ensure that federal expenditures are accurately...

Program: Highway Planning & Construction (ALN 20.205) Finding: 2020-001 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: The Harbor Department will ensure that federal expenditures are accurately and completely reported on the SEFA. The expected completion date for implementation of these planned actions will be completed Fiscal Year 2024.

View Audit 327673

Finding 502152 (2020-004)

Significant Deficiency 2020

American Association of Physics Teachers, Inc.

MD

Matching / Level of Effort / Earmarking Significant Deficiency § 200.303

Finding 2020-004: 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: 1500529 (9/1/2015 ...

Finding 2020-004: 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: 1500529 (9/1/2015 – 8/31/2022), 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. 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 324369

Finding 502145 (2020-002)

Material Weakness 2020

American Association of Physics Teachers, Inc.

MD

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

Finding 2020-002: 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 2020-002: 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), 1645003 (3/15/2017 – 2/29/2020), 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: NNX16AR36A (8/24/2016 – 8/23/2021 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 324369

Finding 501741 (2020-011)

Significant Deficiency 2020

Assiniboine and Sioux Rural Water Supply System

MT

Questioned Costs Allowable Costs / Cost Principles § 200.303

U.S. Department of Interior Fort Peck Reservation Rural Water System – CFDA No. 15.516 2020-011 Allowable Costs/Cost Principles –Payroll Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charge...

U.S. Department of Interior Fort Peck Reservation Rural Water System – CFDA No. 15.516 2020-011 Allowable Costs/Cost Principles –Payroll Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Condition: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 18 disbursements were paid at a different rate than the approved wage form. Action taken in response to finding: A Human Resources Manager/Payroll Specialist position has been created, and it includes duties to assist with internal control procedures. This position is responsible for ensuring the wage forms are signed to document authorization, up to date, completed in a timely manner, and correctly entered into the accounting software system in order to ensure correct financial accounting. Name(s) of the contact person(s) responsible for corrective action: Ashleigh Weeks, General Manager, Tanya Bear, Administrative Officer, and Bailey Day, Human Resources Manager/Payroll Specialist Planned completion date for corrective action plan: Complete

View Audit 323813 Questioned Costs: $1

Finding 501740 (2020-010)

Significant Deficiency 2020

Assiniboine and Sioux Rural Water Supply System

MT

Questioned Costs Allowable Costs / Cost Principles § 200.303

U.S. Department of Interior Fort Peck Reservation Rural Water System – CFDA No. 15.516 2020-010 Allowable Costs/Cost Principles – Payroll Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charge...

U.S. Department of Interior Fort Peck Reservation Rural Water System – CFDA No. 15.516 2020-010 Allowable Costs/Cost Principles – Payroll Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Condition: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 14 disbursements were not signed by employee and/or supervisor. Action taken in response to finding: Additional staff have been hired to assist with payroll duties. The Payroll Specialist position was created and filled in June of 2021 and since then internal procedures have been developed to ensure that time sheets are complete and correct, and authorized and signed by both the employee and/or supervisor. Complete documentation is reviewed and approved by the General Manager, which is documented by signature on the payroll cover sheet before the payroll is processed. The Administrative Officer position has also been developed and given authority to act on behalf of the General Manger during absence, so that all documents will be properly and completely approved before processing. Additionally, Time Clock Plus software was also purchased and is now used for time tracking. It has enhanced accuracy and reduced manual error by integrating and transferring data directly into the Black Mountain Accounting Software. The new processes implemented are more efficient and have reduced the processing time and payroll effort. Name(s) of the contact person(s) responsible for corrective action: Ashleigh Weeks, General Manager; Tanya Bear, Administrative Officer; and Bailey Day, Human Resources Manager/Payroll Specialist Planned completion date for corrective action plan: Complete

View Audit 323813 Questioned Costs: $1

Finding 501739 (2020-009)

Significant Deficiency 2020

Assiniboine and Sioux Rural Water Supply System

MT

Questioned Costs Allowable Costs / Cost Principles § 200.303

U.S. Department of Interior Fort Peck Reservation Rural Water System – CFDA No. 15.516 2020-009 Allowable Costs/Cost Principles – Payroll Expenses Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported an...

U.S. Department of Interior Fort Peck Reservation Rural Water System – CFDA No. 15.516 2020-009 Allowable Costs/Cost Principles – Payroll Expenses Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Condition: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 4 disbursements were not supported by an employee wage form on file. Action taken in response to finding: All employees have a current wage from on file. Changes to payroll are not completed until the wage form is signed by both the General Manager and Financial Officer. The wage forms for each employee are completed during orientation and with wage increases following a satisfactory work performance evaluation. The wage forms are kept with each employee’s file stored with the HR Manager. Name(s) of the contact person(s) responsible for corrective action: Ashleigh Weeks, General Manager, Tanya Bear, Administrative Officer, and Bailey Day, Human Resources Manager/Payroll Specialist Planned completion date for corrective action plan: Complete

View Audit 323813 Questioned Costs: $1

Finding 501738 (2020-008)

Significant Deficiency 2020

Assiniboine and Sioux Rural Water Supply System

MT

Questioned Costs Procurement, Suspension & Debarment Significant Deficiency § 200.303

U.S. Department of Interior Fort Peck Reservation Rural Water System – CFDA No. 15.516 2020-008 Allowable Costs/Costs Principles – Nonpayroll Expenses Recommendation: CLA recommend that ASRWSS policies and procedures be followed consistently. We also recommend that supporting documentation be maint...

U.S. Department of Interior Fort Peck Reservation Rural Water System – CFDA No. 15.516 2020-008 Allowable Costs/Costs Principles – Nonpayroll Expenses Recommendation: CLA recommend that ASRWSS policies and procedures be followed consistently. We also recommend that supporting documentation be maintained and properly documented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Management agrees with this recommendation. Condition: During our testing of expenditures, it was noted that of the 60 samples tested, 1 purchase order was created after the invoice. Action taken in response to finding: Corrective action began in May 2019 with implementation of vouchers to document authorization of purchases by the signature or initial of the general manager. Supporting documentation for all purchases is now properly recorded and filed with each expense. Currently, purchase request forms are used rather than vouchers, but they serve the same purpose to document account coding and approval to initiate requisitions. Requisitions are entered by administrative staff, either the Administrative Officer or Secretary. Management reviews and will correct any errors in account coding before approval of requisitions in the accounting software. After requisitions are approved, they are made into purchase orders that encumbrance the accounts. Name(s) of the contact person(s) responsible for corrective action: Ashleigh Weeks, General Manager, and Jodi Miller, Finance Officer Planned completion date for corrective action plan: Complete

View Audit 323813 Questioned Costs: $1

Finding 501735 (2020-005)

Material Weakness 2020

Assiniboine and Sioux Rural Water Supply System

MT

Questioned Costs Allowable Costs / Cost Principles § 200.303

U.S. Department of Interior Bureau of Indian Affairs Facilities Operations and Maintenance – CFDA No. 15.048 2020-005 Allowable Costs/Cost Principles –Payroll Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properl...

U.S. Department of Interior Bureau of Indian Affairs Facilities Operations and Maintenance – CFDA No. 15.048 2020-005 Allowable Costs/Cost Principles –Payroll Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Condition: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 23 disbursements were paid at a different rate than the approved wage form. Action taken in response to finding: A Human Resources Manager/Payroll Specialist position has been created, and it includes duties to assist with internal control procedures. This position is responsible for ensuring the wage forms are signed to document authorization, up to date, completed in a timely manner, and correctly entered into the accounting software system in order to ensure correct financial accounting. Name(s) of the contact person(s) responsible for corrective action: Ashleigh Weeks, General Manager, Tanya Bear, Administrative Officer, and Bailey Day, Human Resources Manager/Payroll Specialist Planned completion date for corrective action plan: Complete

View Audit 323813 Questioned Costs: $1

Finding 501734 (2020-004)

Significant Deficiency 2020

Assiniboine and Sioux Rural Water Supply System

MT

Questioned Costs Allowable Costs / Cost Principles § 200.303

U.S. Department of Interior Bureau of Indian Affairs Facilities Operations and Maintenance – CFDA No. 15.048 2020-004 Allowable Costs/Cost Principles –Payroll Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly...

U.S. Department of Interior Bureau of Indian Affairs Facilities Operations and Maintenance – CFDA No. 15.048 2020-004 Allowable Costs/Cost Principles –Payroll Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Condition: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 4 disbursements were not signed by the employee and/or supervisor. Action taken in response to finding: Additional staff have been hired to assist with payroll duties. The Payroll Specialist position was created and filled in June of 2021 and since then internal procedures have been developed to ensure that time sheets are complete and correct, and authorized and signed by both the employee and/or supervisor. Complete documentation is reviewed and approved by the General Manager, which is documented by signature on the payroll cover sheet before the payroll is processed. The Administrative Officer position has also been developed and given authority to act on behalf of the General Manger during absence, so that all documents would be properly and completely approved before processing. Additionally, Time Clock Plus software was also purchased and is now used for time tracking. It has enhanced accuracy and reduced manual error by integrating and transferring data directly into the Black Mountain Accounting Software. The new processes implemented are more efficient and have reduced the processing time and payroll effort. Name(s) of the contact person(s) responsible for corrective action: Ashleigh Weeks, General Manager; Tanya Bear, Administrative Officer; and Bailey Day, Human Resources Manager/Payroll Specialist Planned completion date for corrective action plan: Complete

View Audit 323813 Questioned Costs: $1

Finding 501733 (2020-003)

Material Weakness 2020

Assiniboine and Sioux Rural Water Supply System

MT

Questioned Costs Allowable Costs / Cost Principles § 200.303

U.S. Department of Interior Bureau of Indian Affairs Facilities Operations and Maintenance – CFDA No. 15.048 2020-003 Allowable Costs/Cost Principles –Payroll Expenses Recommendation: We recommend that ASRWSS follows their internal control policies and procedures to ensure that all expenditures are ...

U.S. Department of Interior Bureau of Indian Affairs Facilities Operations and Maintenance – CFDA No. 15.048 2020-003 Allowable Costs/Cost Principles –Payroll Expenses Recommendation: We recommend that ASRWSS follows their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Condition: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 17 disbursements were not supported by an employee wage form on file. Action taken in response to finding: All employees have current wage forms on file. Changes to payroll are not completed until the wage form is signed by both the General Manager and Financial Officer. The wage forms for each employee are completed during orientation and for approved wage increases. The wage forms are kept with each employee’s file stored with the HR Manager. Name(s) of the contact person(s) responsible for corrective action: Ashleigh Weeks, General Manager, Jodi Miller, Finance Officer; and Bailey Day, Human Resources Manager/Payroll Specialist Planned completion date for corrective action plan: Complete

View Audit 323813 Questioned Costs: $1

Finding 501732 (2020-002)

Significant Deficiency 2020

Assiniboine and Sioux Rural Water Supply System

MT

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency § 200.303

U.S. Department of the Interior Bureau of Indian Affairs Facilities Operations and Maintenance – CFDA No. 15.048 2020-002 Allowable Costs/Costs Principles – Nonpayroll Expenses Recommendation: CLA recommend that ASRWSS policies and procedures be followed consistently. We also recommend that support...

U.S. Department of the Interior Bureau of Indian Affairs Facilities Operations and Maintenance – CFDA No. 15.048 2020-002 Allowable Costs/Costs Principles – Nonpayroll Expenses Recommendation: CLA recommend that ASRWSS policies and procedures be followed consistently. We also recommend that supporting documentation be maintained and properly documented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Management agrees with this recommendation. Condition: During our testing of expenditures, it was noted that of the 60 samples tested, 2 pay applications or invoices were not adequately supported or authorized. Action taken in response to finding: Corrective action began in May 2019 with implementation of vouchers to document authorization of purchases with the signature or initial of the general manager. Supporting documentation for all purchases are recorded and filed with each expense. New procedures were implemented during the last quarter of Fiscal Year 2020. Vouchers were replaced with purchase request forms. The purchase request forms serve the same objective as vouchers to document account coding and approval of purchase. The signed purchase request form then initiates the process to enter requisitions. Requisitions are entered by administrative staff, either the Administrative Officer or Secretary. Management reviews and will correct any errors in account coding before approval of requisitions in the accounting software. After requisitions are approved, they are made into purchase orders that encumbrance the accounts. Prior to payment, the Financial Officer reviews documentation of expenses for the approvals, allowable costs, correct coding, approved budgets. The Financial Officer then provides the General Manager with a Claims Report for final review and approval before posting expenses and making payments. The approval of the Claims Report is documented by the signature of the general manger on the report. This process provides internal controls that ensure pay applications and invoices will provide documentation of support and authorization. Name(s) of the contact person(s) responsible for corrective action: Ashleigh Weeks, General Manager; Jodi Miller, Finance Officer; and Tanya Bear, Administrative Officer Planned completion date for corrective action plan: Completed

View Audit 323813 Questioned Costs: $1

Finding 480924 (2020-008)

Material Weakness 2020

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 non-compliance. 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 third-party 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. Mr. Ezequiel Nieves - PREPA Disaster Funding Management Office July 2025

View Audit 317029

Finding 480785 (2020-004)

Significant Deficiency 2020

American Association of Physics Teachers, Inc.

MD

Matching / Level of Effort / Earmarking Significant Deficiency § 200.303

Finding 2020-004: 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 2020-004: 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 316959

Finding 406035 (2020-002)

Significant Deficiency 2020

Hospital Damas INC

PR

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

Finding No. 2020-002 - Reporting Condition Our audit procedures revealed instances where reports required to be filed under the grant agreement were either not filed at all or filed after the due date. The Hospital did not provide evidence of the June and July 2020 submission. Also, the expenses rep...

Finding No. 2020-002 - Reporting Condition Our audit procedures revealed instances where reports required to be filed under the grant agreement were either not filed at all or filed after the due date. The Hospital did not provide evidence of the June and July 2020 submission. Also, the expenses reports related to November and December 2020 were submitted on December 30, 2020 (15 days later) and February 5, 2021 (21 days later). Hospital’s Response The Hospital agrees with this finding. Corrective Action Plan On March 2, 2022, all pending reports were submitted to AAFAF. Also, commencing immediately, Mr. José R. Rodríguez, Accounting Manager, will be the designated officer in charge of submitting the report by its due date and Mr. Julio Colón, Chief Financial Officer, will be the designated officer in charge of supervising and monitoring compliance with timely submittance each month. Name (s) of the Contact Person (s) Responsible for Corrective Action Julio Colón, Chief Financial Officer Anticipated Completion Date March 2, 2022

View Audit 311581

Finding 401678 (2020-006)

Material Weakness 2020

Island Health, Inc.

MA

Cash Management HUD Housing Programs § 200.302 § 200.303 § 200.305

Recommendation The Center should develop written procedures to review all drawdowns that occur in order to ensure accuracy. Repeat Finding No Action Taken Island Health Care will take the following actions to address this recommendation: • Prepare written procedures to document the process for Dra...

Recommendation The Center should develop written procedures to review all drawdowns that occur in order to ensure accuracy. Repeat Finding No Action Taken Island Health Care will take the following actions to address this recommendation: • Prepare written procedures to document the process for Drawdown requests, including the initial review, documented approval process, submission to the funding agency, and the recording of the drawdown in the accounting system immediately after submission • Maintain detailed records of all drawdown requests, supporting documentation, approvals, and correspondence • Conduct regular internal reviews of drawdown activities to ensure compliance with procedures and maintain audit trail • Review drawdown procedures annually to ensure they remain current with funding agency guidelines and best practices

View Audit 309626

Finding 400499 (2020-006)

Material Weakness 2020

Island Health, Inc.

MA

Cash Management HUD Housing Programs § 200.302 § 200.303 § 200.305

Recommendation The Center should develop written procedures to review all drawdowns that occur in order to ensure accuracy. Repeat Finding No Action Taken Island Health Care will take the following actions to address this recommendation: • Prepare written procedures to document the process for Dra...

Recommendation The Center should develop written procedures to review all drawdowns that occur in order to ensure accuracy. Repeat Finding No Action Taken Island Health Care will take the following actions to address this recommendation: • Prepare written procedures to document the process for Drawdown requests, including the initial review, documented approval process, submission to the funding agency, and the recording of the drawdown in the accounting system immediately after submission • Maintain detailed records of all drawdown requests, supporting documentation, approvals, and correspondence • Conduct regular internal reviews of drawdown activities to ensure compliance with procedures and maintain audit trail • Review drawdown procedures annually to ensure they remain current with funding agency guidelines and best practices

View Audit 308496

Finding 392653 (2020-108)

Significant Deficiency 2020

Pancare of Florida, INC

FL

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.303 § 200.405 § 200.406

2020-108 Lack of Controls over Costs Submitted for Reimbursement Condition: The Organization included an invoice for reimbursement under the program for which a vendor credit memo for the full amount of the invoice had been received due to miscoding of the credit memo to the correct COVID-19 class ...

2020-108 Lack of Controls over Costs Submitted for Reimbursement Condition: The Organization included an invoice for reimbursement under the program for which a vendor credit memo for the full amount of the invoice had been received due to miscoding of the credit memo to the correct COVID-19 class on the general ledger. In addition, the Organization did not include an applicable invoice for COVID-19 expenses for reimbursement due to the same miscoding of the COVID-19 class to the general ledger. Corrective Action Planned: The Organization has hired a new Chief Financial Officer as well as additional supporting staff within the finance department. Management understands the importance of reviewing the posting of credit memos or applicable invoices to ensure they are posted correctly. We will update our policy to include a process for review of credit memos prior to posting. The planned corrective action for this finding is currently in the process of development, approval, and implementation. Person Responsible for Corrective Action: Robert Thompson, Chief Operating Officer Anticipated Completion Date: March 1, 2023

View Audit 302957

Finding 392652 (2020-107)

Material Weakness 2020

Pancare of Florida, INC

FL

Allowable Costs / Cost Principles Subrecipient Monitoring HUD Housing Programs § 200.303

2020-107 Lack of ACH Payment Review and Approval Condition: Payments are not reviewed prior to ACH payments. The Organization has no documented policies and procedures for handling the processing and review of ACH payments. Corrective Action Planned: : The Organization has hired a new Chief Finan...

2020-107 Lack of ACH Payment Review and Approval Condition: Payments are not reviewed prior to ACH payments. The Organization has no documented policies and procedures for handling the processing and review of ACH payments. Corrective Action Planned: : The Organization has hired a new Chief Financial Officer as well as additional supporting staff within the finance department. Management understands the importance of reviewing the posting of credit memos or applicable invoices to ensure they are posted correctly. We will update our policy to include a process for review of credit memos prior to posting. The planned corrective action for this finding is currently in the process of development, approval, and implementation. Person Responsible for Corrective Action: Robert Thompson, Chief Operating Officer Anticipated Completion Date: March 1, 2023

View Audit 302957

Finding 392651 (2020-106)

Material Weakness 2020

Pancare of Florida, INC

FL

Cash Management Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

2020-106 Use of Budgeted Versus Actual Costs for Reimbursements Condition: The Organization made drawdowns after month-end based on budgeted period expenses. Insufficient documentation was kept to clearly document that the amount requested was reviewed for accuracy. Corrective Action Planned: The ...

2020-106 Use of Budgeted Versus Actual Costs for Reimbursements Condition: The Organization made drawdowns after month-end based on budgeted period expenses. Insufficient documentation was kept to clearly document that the amount requested was reviewed for accuracy. Corrective Action Planned: The Organization has hired a new Chief Financial Officer as well as additional supporting staff within the finance department. The Organization has reviewed and updated its grant drawdown procedures to included only actual cost and for the request to be reviewed and approved by someone other than the preparer prior to submission. The corrective action for this finding has been approved and implemented by the Organization. Person Responsible for Corrective Action: Robert Thompson, Chief Operating Officer Anticipated Completion Date: Implemented

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Finding 392650 (2020-105)

Significant Deficiency 2020

Pancare of Florida, INC

FL

Procurement, Suspension & Debarment § 200.303

2020-105 Lack of Required Policies Associated with Procurement Condition: The Organization does not have written policies in regards to procurement to ensure federal awards are being spent in accordance with federal and other specific requirements under the award. Corrective Action Planned: The Or...

2020-105 Lack of Required Policies Associated with Procurement Condition: The Organization does not have written policies in regards to procurement to ensure federal awards are being spent in accordance with federal and other specific requirements under the award. Corrective Action Planned: The Organization has hired a new Chief Financial Officer as well as additional supporting staff within the finance department. The Organization will review and update its existing policies to include procurement to ensure federal awards are being spent in accordance with federal and other specific requirements under the awards. The Organization expects to have this implemented by March 1, 2023. Person Responsible for Corrective Action: Robert Thompson, Chief Operating Officer Anticipated Completion Date: March 1, 2023

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Finding 392649 (2020-104)

Significant Deficiency 2020

Pancare of Florida, INC

FL

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

2020-104 Lack of Documentation Related to Reporting and Lack of Controls Related to Filing Reports Condition: The Organization did not maintain proper documentation in support of reporting requirements and there was no review of the reports prior to submission to the grantor, other than the review...

2020-104 Lack of Documentation Related to Reporting and Lack of Controls Related to Filing Reports Condition: The Organization did not maintain proper documentation in support of reporting requirements and there was no review of the reports prior to submission to the grantor, other than the review done by the preparer. Corrective Action Planned: Planned Corrective Actions: The Organization has hired a new Chief Financial Officer as well as additional supporting staff within the finance department. The Organization has reviewed and updated its reporting policy and implemented the changes. The corrective action for this finding has been approved and implemented by the Organization. Person Responsible for Corrective Action: Robert Thompson, Chief Operating Officer Anticipated Completion Date: Implemented

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Finding 392648 (2020-102)

Significant Deficiency 2020

Pancare of Florida, INC

FL

Cash Management § 200.303

2020-102 Lack of Cash Management Documentation Condition: The Organization made drawdowns after month-end based on budgeted period expenditures. Insufficient documentation was kept to clearly document that the amount requested was reviewed for accuracy. Corrective Action Planned: The Organization...

2020-102 Lack of Cash Management Documentation Condition: The Organization made drawdowns after month-end based on budgeted period expenditures. Insufficient documentation was kept to clearly document that the amount requested was reviewed for accuracy. Corrective Action Planned: The Organization has hired a new Chief Financial Officer as well as additional supporting staff within the finance department. The Organizations policy and procedures related to support documentation retention has been evaluated and updated. Supporting documentation for all drawdown requests are retained by grant. The corrective action for this finding has been approved and implemented by the Organization. Person Responsible for Corrective Action: Robert Thompson, Chief Operating Officer Anticipated Completion Date: Implemented

View Audit 302957

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