PUBLIC BUILDING AUTHORITYLocal Government

Finding Number: 2021-002 Agency: Department of Homeland Security Federal Program: DISASTER GRANTS - PUBLIC ASSISTANCE (Presidentially Declared Disasters) Assistant listing number: 97.036 Grant Number: All grants in SEFA Grant Period: July 1, 2018 through June 30, 2021 Compliance Requirement: Reporting Category: Significant Deficiency and noncompliance over federal program Criteria: OMB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal years ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. Condition: During our audit of June 30, 2021 financial statements, we noted that single audit report for fiscal year 2020-2021 was not submitted by September 30, 2022. Cause: Lack of internal controls over financial reporting to produce financial statements on timely basis to comply with OMB reporting deadlines. Effect: Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Recommendation: To improve, execute and monitors accounting periods end closings as planned in order to get a financial statement on time to comply with required deadlines. Also, keep track and communication of federal programs compliances with regulatory parties and among Authority responsible departments involve and establish a program deadline calendar. Questioned Costs: None Perspective of the information: Single audit report was issued after due date. The information was not drawn from a statistical sample. Prior Year Finding: Yes. Management response: Due to government closures that occurred during the pandemic it was impossible to obtain the external and internal information to comply with established requirements. Responsible Officer: Mr. José R. González De la Vega Estimated Completion Date: To work it on or before December 2023.

PUBLIC BUILDINGS AUTHORITY (A Component Unit of the Commonwealth of Puerto Rico) SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2021 Finding Number: 2021-003 Agency: Department of Homeland Security Federal Program: DISASTER GRANTS - PUBLIC ASSISTANCE (Presidentially Declared Disasters) Assistant listing number: 97.036 Grant Number: All grants in SEFA Grant Period: July 1, 2018 through June 30, 2021 Compliance Requirement: Reporting Category: Significant Deficiency Criteria: As per § 200.328 Financial reporting. Unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB- approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information. Condition: During the audit, we noted differences between quarterly reports amounts submitted to grantee agency and expense amounts accrued during the year. PW Number on large projects//Quarter//Quater ended//Deadline//Reported costs as per QPR//Costs as per SEFA 2021 PW-4339-2602 // 3 // 6-30-2021 // 7-31-2021 // - // 502,879 PW-4339-4206 // 3 // 6/30/2021 // 7/31/2021 // - // 1,290,050 PW-4339-5823 // 3 // 6/30/2021 // 7/31/2021 // - // 223,731 PW-4339-7235 // 3 // 6/30/2021 // 7/31/2021 // - // 259,085 PW-4339-8298 // 3 // 6/30/2021 // 7/31/2021 // - // 462,364 PW-4339-8314 // 3 // 6/30/2021 // 7/31/2021 // - // 251,917 PW-4339-8342 // 3 // 6/30/2021 // 7/31/2021 // - // 465,357 Cause: Missing of supporting documentation and underlying data. Effect: Wrong reported amounts could significantly affect program outcomes. Recommendation: To keep, document, file and trace supporting data to support quarterly reports Questioned Costs: None Perspective of the information: The information was not drawn from a statistical sample. Prior Year Finding: No Management response: A specialized funds firm was hired that is working on internal controls to improve the method of accounting of federal funds that meet accounting and FEMA requirements. Responsible Officer: Mr. José R. González De la Vega Estimated Completion Date: To work it on or before December 2023.

Finding Number: 2020-002 Agency: Department of Homeland Security Federal Program: DISASTER GRANTS - PUBLIC ASSISTANCE (Presidentially Declared Disasters) Assistant listing number: 97.036 Grant Number: All grants in SEFA Grant Period: July 1, 2018 through June 30, 2019 Compliance Requirement: Reporting Category: Significant deficiency and noncompliance over federal program Criteria: OMB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $750,000 or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. Condition: During our audit of June 30, 2020 financial statements, we noted that single audit report for fiscal year 2019-2020 was not submitted by September 30, 2021. Cause: Lack of internal controls over financial reporting to produced financial statements on timely basis to comply with OMB reporting deadlines. Effect: Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Recommendation: Keep track and communication of federal programs compliances with regulatory parties and among Authority responsible departments involve and establish a program deadline calendar. Questioned Costs: None Perspective of the information: Single audit report was issued after due date. The information was not drawn from a statistical sample. Prior Year Finding: no Management response: The financial statements, with their respective findings, were delivered to the Agency on June 20, 2022. Due to multiple changes in management, in addition to the Pandemic our Financial Statement were behind schedule, therefore, management will be working on the Single Audit's action plans required during this period of 2023, to comply with all the things that are still in force. Responsable Oficial: Mr. Mr. José R. González de la Vega Estimated Completion Date: On or before December, 2023.

Finding Number: 2020-003 Agency: Department of Homeland Security Federal Program: DISASTER GRANTS - PUBLIC ASSISTANCE (Presidentially Declared Disasters) Assistant listing number: 97.036 Grant Number: All grants in SEFA Grant Period: July 1, 2018 through June 30, 2020 Compliance Requirement: Reporting Category: Significant Deficiency Criteria: As per § 200.328 Financial reporting. Unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information. Condition: During the audit, we note differences between quarterly reports amounts submitted to grantee agency and expense amounts accrued during the year. Grant Report (Name) PW Number Date submitted Deadline Extension date approved Report submitted on time? Yes/No Expenditures as per QPR Expenditures as per SEFA FEMA 1798-DR-PR Proyecto Completado PW-4339-430 6/30/2020 7/30/2020 No Yes - 1,710,856 FEMA 1798-DR-PR Proyecto sin comenzar PW-4339-1335 6/30/2020 7/30/2020 NO Yes - 532,350 Cause: Missing of supporting documentation and underlying data support reporting figures amount. Effect: Wrong reported amounts could significantly affect program outcomes. Recommendation: To keep, document, file and trace supporting data for to support quarterly reports Questioned Costs: None Perspective of the information: The information was not drawn from a statistical sample. Prior Year Finding: No Management response: A specialized federal funds firm was hired. It is working with internal controls to improve the method of accounting for federal funds that meet accounting and FEMA requirements. Responsible Official: Mr. José R. González de la Vega Estimated Completion Date: To complete on or before December 2023

Finding Number: 2019-003 Agency: Department of Homeland Security Federal Program: DISASTER GRANTS - PUBLIC ASSISTANCE (Presidentially Declared Disasters) Assistant listing number: 97.036 Grant Number: All grants in SEFA Grant Period: July 1, 2018 through June 30, 2019 Compliance Requirement: Reporting Category: Significant deficiency and noncompliance over federal program Criteria: OMB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $750,000 or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. Condition: During our audit of June 30, 2019 financial statements, we noted that single audit report for fiscal year 2018-2019 was not submitted by September 30, 2020. Cause: Lack of internal controls over financial reporting to produced financial statements on timely basis to comply with OMB reporting deadlines. Effect: Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Recommendation: Keep track and communication of federal programs compliances with regulatory parties and among Authority responsible departments involve and establish a program deadline calendar. Questioned Costs: None Perspective of the information: Single audit report was issued after due date. The information was not drawn from a statistical sample. Prior Year Finding: no Management response: The financial statements, with their respective findings, were delivered to the Agency on November 10, 2021. Due to multiple changes in management, in addition to the Pandemic our Financial Statement were behind schedule, therefore, management will be working on the Single Audit's action plans required during this period of 2023, to comply with all the things that are still in force. Responsable Oficial: Mr. Mr. José R. González de la Vega Estimated Completion Date: On or before December, 2023