EIN: 020439252
UEI: EL9PTMJ9LXD4
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on October 2, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by April 2, 2026, which was (139 days ago).
What is a management decision? →PAX implemented a process under which employees sign off on their biweekly earnings statements to indicate the percentage of effort attributed to each federal award. However, this process captures only the effort associated with federal programs. The remaining portion of employee effort, relating to non-federal programs and management & general functions, is estimated by management on a monthly basis. As a result, the organization does not maintain employee-supported documentation reflecting 100% of time and effort worked across all cost objectives.
Based upon current auditor’s recommendation, PAX has revised its effort verification reporting system. The previous system recommended by the last auditor was launched in FY23, however, current auditor points out the need to track all efforts rather than only the federal grants in order to provide support for the full effort of each employee. Our latest revised system will accurately capture 100% of the effort spent by each employee on specific grants, other programs, and general and administrative functions, ensuring complete documentation of allocation of wages and salaries to the respective federal awards.
2023-006
The audit package and data collection form were not submitted to the Federal Audit Clearinghouse for the reporting year September 30, 2024, within nine months after the end of the audit period.
PAX has established policies, procedures, and controls to ensure that future submissions of Uniform Guidance reports are filed in a timely manner. The primary deliverable will be timely audit completion and submission.
2023-008
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on October 2, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by April 2, 2026, which was (139 days ago).
What is a management decision? →PAX did not have an effective internal control system in place for monitoring and documenting salaries and wages charged to the federal awards.
Based upon current auditor’s recommendation, PAX established an effort verification reporting system. This system was launched in FY23 and enhanced in FY24 with great specificity and fuller allocation information. The latest system will accurately capture the effort spent by each employee on specific grants, ensuring proper documentation of allocation of wages and salaries to the respective federal awards.
2022-008
Per the terms of the award, PAX agreed to expend a share of the total program cost financed by PAX and others from non-federal funds in accordance with 2 CFR 200.306. PAX’s books and records did not contain the necessary information to verify whether this matching requirement was met.
PAX implemented a dedicated cost center in the books and records specifically for tracking cost shared expenses midyear during FY23 rather than the previous practice of recognition of cost share at year end closing. Full implementation of contemporaneous tracking of cost share was implemented in FY24. Additionally, PAX now reconciles against this cost center to ensure that the expenses reported to the grantor and budgetary allocations align with the actual expenditures.
2022-009
The audit package and data collection form were not submitted to the Federal Audit Clearinghouse for the reporting year September 30, 2023, within nine months after the end of the audit period.
PAX will establish appropriate policies, procedures, and controls to ensure that future submissions of Uniform Guidance reports are filed timely. The primary deliverable will be timely audit completion and submission.
2022-010
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on October 2, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by April 2, 2026, which was (139 days ago).
What is a management decision? →During the year under audit, PAX did not have a time and effort reporting system that met the requirements of the federal cost principles.
In a previous period and by previous auditors, PAX was told that because we were using a percentage of effort calculation in budgeting that time sheets were no longer needed for this purpose. At that time, we abandoned the time sheet process (which was arduous). Based upon current auditor’s advice, PAX established an effort verification reporting system. This system was launched in FY23 and enhanced in FY24. It will accurately capture the effort spent by each employee on specific grants, ensuring proper documentation of allocation of wages and salaries to the respective federal awards.
2021-008
Per the terms of the award, PAX agreed to expend a share of the total program cost financed by PAX and/or others from non-federal funds in accordance with 2 CFR 200.306. PAX’s books and records did not contain the necessary information to verify whether this matching requirement was met.
PAX implemented a dedicated cost center in the books and records specifically for tracking cost shared expenses midyear during FY23 rather than the previous practice of recognition of cost share at year end closing. Full implementation of contemporaneous tracking of cost share was implemented in FY24. Additionally, PAX now reconciles against this cost center to ensure that the expenses reported to the grantor and budgetary allocations align with the actual expenditures.
2021-009
The audit package and data collection form were not submitted to the Federal Audit Clearinghouse for the reporting year September 30, 2022 within nine months after the end of the audit period.
PAX will establish appropriate policies, procedures, and controls to ensure that future submissions of Uniform Guidance reports are filed timely. The primary deliverable will be timely audit completion and submission.
2021-010
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on October 2, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by April 2, 2026, which was (139 days ago).
What is a management decision? →Criteria: The requirements for allowable costs related to wages and salaries are contained in 2 CFR Section 200.430. This states that salaries and wages charged to federal awards must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: During the year under audit, PAX did not have a time and effort reporting system that met the requirements of the federal cost principles. Citation: 2 CFR 200.430 Cause: PAX did not have an effective internal control system in place for monitoring and documenting wages and salaries charged to the federal awards. Effect: PAX did not maintain adequate documentation to support salaries charged to the federal awards throughout the year. However, they provided attestations and other support to demonstrate that the salaries and wages were accurate, allowable, and properly allocated after year-end as part of the audit process. Questioned Costs: PAX charged $1,135,897 of wages and salaries to the major program. Context: This sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: Yes Recommendation: We recommend that management establish internal control process, such as a time sheet reporting system, to capture which grant each employee spends time on. View of Responsible Officials: See Corrective Action Plan attached.
In a previous period and by previous auditors, PAX was told that because we were using a percentage of effort calculation in budgeting that time sheets were no longer needed for this purpose. At that time, we abandoned the time sheet process (which was arduous). Based upon current auditor’s advice, PAX will, going forward, establish an effort verification reporting system. This system will accurately capture the effort spent by each employee on specific grants, ensuring proper allocation of wages and salaries to the respective federal awards. Dije Kucana, Comptroller, effective immediately
2020-008
Criteria: The requirements for matching are contained in 2 CFR Section 200.306, This states that any matching costs meet certain criteria including that they be verifiable from the entity’s records. Per the terms and conditions of the award, it is understood and agreed that PAX must provide the minimum amount of cost sharing as stipulated in the budget approved by the Grants Officer. PAX must maintain written records to support all allowable costs which are claimed as being its contribution to cost participation. Condition: Per the terms of the award, PAX agreed to expend a share of the total program cost financed by PAX and/or others from non-federal funds in accordance with 2 CFR 200.306. PAX’s books and records did not contain the necessary information to verify whether this matching requirement was met. Citation: 2 CFR 200.306 Cause: PAX did not have an effective internal control system in place for monitoring that the cost sharing requirement was being met. Effect: The accounting team did not allocate the expenses related to the cost share in the books and records throughout the year. However, they provided schedules that detailed the expenses related to the cost share after year-end as part of the audit process. Questioned Costs: None. Context: This sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: Yes Recommendation: We recommend that an internal control system be established to monitor PAX’s share of the award costs. This system should include tracking these expenses in a separate cost center in the books and records and reconciling to the amount reported to the grantor as well as the budget. View of Responsible Officials: See Corrective Action Plan attached.
PAX will implement a dedicated cost center in the books and records specifically for tracking these expenses. This will allow for better transparency and accountability in reporting. Additionally, PAX will reconcile against this cost center to ensure that the expenses reported to the grantor and budgetary allocations align with the actual expenditures. Dije Kucana, Comptroller, effective immediately
2020-009
Criteria: Per the requirements contained in 2 CFR 200.512 (a), the auditee is responsible for submitting the data collection form and the reporting package, including the auditors’ reports, within the earlier of 30 days after receipt of the auditors’ report or nine months after the end of the audit period to the federal audit clearinghouse. Condition: The audit package and data collection form were not submitted to the Federal Audit Clearinghouse for the reporting year September 30, 2021 within nine months after the end of the audit period. Citation: 2 CFR 200.512 (a) Cause: Account analyses were not performed in a timely manner throughout the year and this led to delays in the start of the audit process. Effect: PAX is deficient in its submission of the required audit reporting package and data collection form. As such, PAX is noncompliant with the reporting requirements. Questioned Costs: None. Context: This was a universal matter that impacted the entity as a whole. Repeat Finding: Yes Recommendation: We recommend that PAX implement appropriate policies, procedures, and controls to ensure that future submissions of the Uniform Guidance reports are filed timely. View of Responsible Officials: See Corrective Action Plan attached.
PAX will establish appropriate policies, procedures, and controls to ensure that future submissions of Uniform Guidance reports are filed timely. The primary deliverable will be timely audit completion and submission. Dije Kucana, Comptroller, and Bradley Smith, CEO, effective immediately
2020-010
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on October 2, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by April 2, 2026, which was (139 days ago).
What is a management decision? →Criteria: The requirements for allowable costs related to wages and salaries are contained in 2 CFR Section 200.430. This states that salaries and wages charged to federal awards must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: During the year under audit, PAX did not have a time and effort reporting system that met the requirements of the federal cost principles. Citation: 2 CFR 200.430 Cause: PAX did not have an effective internal control system in place for monitoring and documenting wages and salaries charged to the federal awards. Effect: PAX did not maintain adequate documentation to support salaries charged to the federal awards throughout the year. However, they provided attestations and other support to demonstrate that the salaries and wages were accurate, allowable, and properly allocated after year-end as part of the audit process. Questioned Costs: PAX charged $1,109,466 of wages and salaries to the major program. Context: This was a universal matter that impacted the entity as a whole. Repeat Finding: No Recommendation: We recommend that management establish internal control process, such as a time sheet reporting system, to capture which grant each employee spends time on. View of Responsible Officials: See Corrective Action Plan attached.
In a previous period and by previous auditors, PAX was told that because we were using a percentage of effort calculation in budgeting that time sheets were no longer needed for this purpose. At that time, we abandoned the time sheet process (which was arduous). Based upon current auditor’s advice, PAX will, going forward, establish an effort verification reporting system. This system will accurately capture the effort spent by each employee on specific grants, ensuring proper allocation of wages and salaries to the respective federal awards. Dije Kucana, Comptroller, effective immediately
Criteria: The requirements for matching are contained in 2 CFR Section 200.306, This states that any matching costs meet certain criteria including that they be verifiable from the entity’s records. Per the terms and conditions of the award, it is understood and agreed that PAX must provide the minimum amount of cost sharing as stipulated in the budget approved by the Grants Officer. PAX must maintain written records to support all allowable costs which are claimed as being its contribution to cost participation. Condition: Per the terms of the award, PAX agreed to expend a share of the total program cost financed by PAX and/or others from non-federal funds in accordance with 2 CFR 200.306. PAX’s books and records did not contain the necessary information to verify whether this matching requirement was met. Citation: 2 CFR 200.306 Cause: PAX did not have an effective internal control system in place for monitoring that the cost sharing requirement was being met. Effect: The accounting team did not allocate the expenses related to the cost share in the books and records throughout the year. However, they provided schedules that detailed the expenses related to the cost share after year-end as part of the audit process. Questioned Costs: None. Context: This was a universal matter that impacted the entity as a whole. Repeat Finding: Yes Recommendation: We recommend that an internal control system be established to monitor PAX’s share of the award costs. This system should include tracking these expenses in a separate cost center in the books and records and reconciling to the amount reported to the grantor as well as the budget. View of Responsible Officials: See Corrective Action Plan attached.
PAX will implement a dedicated cost center in the books and records specifically for tracking these expenses. This will allow for better transparency and accountability in reporting. Additionally, PAX will reconcile against this cost center to ensure that the expenses reported to the grantor and budgetary allocations align with the actual expenditures. Dije Kucana, Comptroller, effective immediately
2019-007
Criteria: Per the requirements contained in 2 CFR 200.512 (a), the auditee is responsible for submitting the data collection form and the reporting package, including the auditors’ reports, within the earlier of 30 days after receipt of the auditors’ report or nine months after the end of the audit period to the federal audit clearinghouse. Condition: The audit package and data collection form were not submitted to the Federal Audit Clearinghouse for the reporting year September 30, 2020 within nine months after the end of the audit period. Citation: 2 CFR 200.512 (a) Cause: Account analyses were not performed in a timely manner throughout the year and this led to delays in the start of the audit process. Effect: PAX is deficient in its submission of the required audit reporting package and data collection form. As such, PAX is noncompliant with the reporting requirements. Questioned Costs: None. Context: This was a universal matter that impacted the entity as a whole. Repeat Finding: Yes Recommendation: We recommend that PAX implement appropriate policies, procedures, and controls to ensure that future submissions of the Uniform Guidance reports are filed timely. View of Responsible Officials: See Corrective Action Plan attached.
PAX will establish appropriate policies, procedures, and controls to ensure that future submissions of Uniform Guidance reports are filed timely. The primary deliverable will be timely audit completion and submission. Dije Kucana, Comptroller, and Bradley Smith, CEO, effective immediately
2019-008
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on October 2, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by April 2, 2026, which was (139 days ago).
What is a management decision? →Criteria: The requirements for matching are contained in 2 CFR Section 200.306, This states that any matching costs meet certain criteria including that they be verifiable from the entity’s records. Per the terms and conditions of the award, it is understood and agreed that PAX must provide the minimum amount of cost sharing as stipulated in the budget approved by the Grants Officer. PAX must maintain written records to support all allowable costs which are claimed as being its contribution to cost participation. Condition: Per the terms of the award, PAX agreed to expend an amount not less than $365,986 of the total program cost for financing by the PAX and/or others from non-federal funds in accordance with 2 CFR 200.306. PAX’s books and records did not contain the necessary information to verify whether this matching requirement was met. Citation: 2 CFR 200.306 Cause: PAX did not have an effective internal control system in place for monitoring that the cost sharing requirement was being met. Effect: The accounting team did not allocate the expenses related to the cost share in the books and records throughout the year. However, they provided schedules that detailed the expenses related to the cost share after year-end as part of the audit process. Questioned Costs: None. Context: This was a universal matter that impacted the entity as a whole. Repeat Finding: Yes Recommendation: We recommend that an internal control system be established to monitor PAX’s share of the award costs. This system should include tracking these expenses in a separate cost center in the books and records and reconciles to the amount reported to the grantor as well as the budget. View of Responsible Officials: See Corrective Action Plan attached.
PAX will implement a dedicated cost center in the books and records specifically for tracking these expenses. This will allow for better transparency and accountability in reporting. Additionally, PAX will reconcile against this cost center to ensure that the expenses reported to the grantor and budgetary allocations align with the actual expenditures. Dije Kucana, Comptroller, effective immediately
2018-008
Criteria: Per the requirements contained in 2 CFR 200.512 (a), the auditee is responsible for submitting the data collection form and the reporting package, including the auditors’ reports, within the earlier of 30 days after receipt of the auditors’ report or nine months after the end of the audit period to the federal audit clearinghouse. Condition: The audit package and data collection form were not submitted to the Federal Audit Clearinghouse for the reporting year September 30, 2019 within nine months after the end of the audit period. Citation: 2 CFR 200.512 (a) Cause: Account analyses were not performed in a timely manner throughout the year, and this led to delays in the start of the audit process. Effect: PAX is deficient in its submission of the required audit reporting package and data collection form. As such, PAX is noncompliant with the reporting requirements. Questioned Costs: None. Context: This was a universal matter that impacted the entity as a whole. Repeat Finding: Yes Recommendation: We recommend that PAX implement appropriate policies, procedures, and controls to ensure that future submissions of the Uniform Guidance reports are filed timely. View of Responsible Officials: See Corrective Action Plan attached.
PAX will establish appropriate policies, procedures, and controls to ensure that future submissions of Uniform Guidance reports are filed timely. The primary deliverable will be timely audit completion and submission. Dije Kucana, Comptroller, and Bradley Smith, CEO, effective immediately
2018-009
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 26, 2018. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by December 26, 2018, which was (2793 days ago).
What is a management decision? →GSA_MIGRATION
GSA_MIGRATION
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