FOUNTAIN CHRISTIAN BILINGUAL SCHOOL GUAYAMA. INCNon-Profit

Criteria CFR part 75.320 Equipment: Management requirements. Procedures for managing equipment (including replacement equipment), when in whole or in part under a federal award, until disposition takes place will, as a minimum, meet some of the following requirements. (2) A physical inventory of the property must be taken, and the result reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft shall be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the grantee or subgrantee is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. (6) Property records must be maintained for equipment acquired under a federal award that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition The school did not maintain adequate internal control over property and equipment. The school did not provide a real and personnel property record of all the property and equipment acquired this year with Federal funds and Insurance. Questioned Cost None determined Cause The school doesn’t have accurate property records of Federal funds to trace the personal and real property activities that should be reported to Federal funds. Effect The Fountain Christian Bilingual School-Guayama, Inc. does not present fairly the financial position of the financial statements. Identification of repeated findings: Repeating findings were found. Recommendation A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property; loss, damage, of theft must be investigated. Adequate maintenance procedures must be developed to keep the property in good condition. The school must identify all properties acquired with Federal funds and maintain adequate accounting records in accordance with Federal regulations. The program must maintain an automated accounting and recordkeeping system adequate for effective oversight. Management Response The board of directors will be meeting to hire an accountant to certify the property that is present at Fountain Bilingual School-Guayama, Inc. to make a consistent property listing. Also make a control system to ensure adequate safeguards to prevent loss, damage, or theft of the property and maintain adequate accounting records.

s Criteria 2 CFR part 75.512, the Uniform Guidance established the audit must be completed nine months after the end of audit period and the Single Audit Reporting package and Data Collection Form (SF-SAC) Federal Audit Clearing House, must be submitted within the earlier 30 calendar days after receipt of the auditor’s report, or nine months after the end audit period, whichever comes first. Condition Preliminary Financial reports and programs financial information were available on July 15, 2023, to prepare the Single Audit Reporting Package. Questioned Cost None determined Cause Control procedures were not established to provide on time finance information to prepare the Single Audit reporting package. Effect The Corporation did not comply with the submission date required for the Data Collection Form and Reporting Package, this could affect the continuance and new approvals of federal funds. In addition, for the next two (2) fiscal years the Corporation cannot be considered by the auditor as a low-risk auditee. Identification of repeated findings: Repeating findings were found. Recommendation To prepare a calendar responsibility of Federal funds due dates financial statements to be prepared on time. Adequate training must be provided to finance personnel. The board of directors must create an Audit and Finance Committee to revise monthly financial statements. Management Response Agreed with the Finding: We are actively seeking a company to provide guidance and assistance in report issuance, aiming to streamline and address these processes effectively.

Criteria Annual Form State Department of Puerto Rico under state law number 164- 2009 as amended in article 15.08 State Department of de Puerto Rico must be prepared in accordance to not - for profit organization. Condition The Annual Form of the State Department of Puerto Rico is an annual information return required to be filed with the State Department by most organizations exempt from income tax. The form must be completed by all filing organizations and requires reporting on the organization?s exempt and other activities, finances, governance, compliance with certain tax filing and requirements, and compensation paid to certain persons. Questioned Cost: Not determined Cause Finance personnel do not establish internal control procedures to provide the correct financial information on time to prepare the Annual report correctly on time. Effect The school does not correctly file the Annual Form State Department of Puerto Rico under law number 164-2009 as amended in the article 15.02, a penalty of not less than 100 and not more than $1,000, can be charged when a return is filed late, unless the organization shows that the late filing was due to reasonable cause. Identification of repeated findings: First year single audit. Recommendation: To prepare a calendar of responsibilities of funds due dates financial statements to be prepared on time. Adequate training must be provided to the personnel. The governing body must create an Audit and Finance Committee to revise monthly financial statements to file the return of organization exempt from Income Tax on time. Management Response: The board of directors will be meeting to discuss the financial information of the schools in order to hire an accountant to correct the annual report of the Puerto Rico State Department.

Type of Finding: Compliance Requirement ? Equipment and Real Property Management, Financial Statement. Criteria CFR part 75.320 Equipment: Management requirements. Procedures for managing equipment (including replacement equipment), when in whole or in part under a federal award, until disposition takes place will, as a minimum, meet some of the following requirements. (2) A physical inventory of the property must be taken, and the result reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft shall be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the grantee or sub grantee is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. (6) Disposition. When original or replacement equipment acquired under a federal award is no longer needed for the original project or program or for other activities currently or previously supported by the awarding agency, except as otherwise provided in Federal statues, regulations. Condition The school did not maintain adequate internal control over property and equipment. The school did not provide a real and personnel property record of all the property and equipment acquired this year with Federal funds and Insurance. Questioned Cost None determined. Cause The school doesn?t have accurate property records of Federal funds to trace the personal and real property activities that should be reported to Federal funds. Effect The Fountain Christian Bilingual School-Guayama, Inc. does not present fairly the financial position of the financial statements. Identification of repeated findings: First year single audit. Recommendation A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property; loss, damage, of theft must be investigated. Adequate maintenance procedures must be developed to keep the property in good condition. The school must identify all properties acquired with Federal funds and maintain adequate accounting records in accordance with Federal regulations. The program must maintain an automated accounting and recordkeeping system adequate for effective oversight. Management Response The board of directors will be meeting to hire an accountant to certify the property that is present at Fountain Bilingual School-Guayama, Inc. to make a consistent property listing. Also make a control system to ensure adequate safeguards to prevent loss, damage, or theft of the property and maintain adequate accounting records.

Type of Finding: Reporting Criteria CFR part 75.510 Financial Statement The auditee must prepare interim financial statements that reflect its interim financial position, results of operations. The financial statements must be for the same organizational unit and fiscal year that is chosen to meet the requirement of this part. Condition The school did not maintain adequate internal control over interim financial reporting. The Center did not provide a interim financial statements do not present all internal transactions during this year with Federal funds and other programs. Questioned Cost: Not determined Cause School doesn?t have accurate interim financial statements of the federal funds to trace the internal activities that may be reported to federal funds. Effect The Fountain Christian Bilingual School, Inc. does not present the interim financial results fairly. Identification of repeated findings: First year single audit. Recommendation: The school should improve the operation and procedures of their Computerized Accounting System and their internal control structure to provide reasonable assurance that: ?Transactions are properly recorded and accounted for permit the preparation of reliable interim financial statements and federal reports, main accountability over assets; and demonstrate compliance with laws, regulations, and other compliance requirement. ?Funds properly safeguarded against loss from unauthorized use of disposition. Management Response: Fountain Christian Bilingual School, Inc. will complete the process of the control over the computerized accounting system to ensure that the interim financial information is accurate.