Information on Federal Program:
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4570-LIHEAP19-
30, 4773-LIHEAP20-30, and 4995-LIHEAP21-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #4780-LIHEAPEF20-30, 4988-LIHEAPEF21-30, 5131-
LIHEAPEF22-30, 5055-LIHEAPEF-ARPA-30)
AL# 93.568
U.S. Department of Energy - Weatherization Assistance for Low-Income Persons (passed
through the North Dakota Division of Community Services, Award # 5073-DOE22-30)
AL# 81.042
Criteria – Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the
schedule of expenditure of federal awards (SEFA). Internal controls should be adequately
designed and implemented to allow for the accurate and timely preparation of the SEFA.
Condition – For the year ended June 30, 2023, we reconciled the auditee prepared SEFA to
underlying general ledger amounts and other records. In doing this, we noted that the
expenditures were misstated.
Cause – Internal controls are not designed to allow for the reconciliation of fund expenses to
grant awards.
Effect or Potential Effect – As the entity’s auditors, we were requested to assist in the
preparation of the SEFA and required notes.
Questioned Costs – None noted.
Context – The auditee-prepared SEFA listed expenditures for the entire grant award regardless
of the fiscal year and all expenses incurred after the grant funds were exhausted.
Repeat Finding – This is a repeat finding of 2022-003 from the prior year.
Recommendation – The entity should pull the internal fund income statements by fiscal year
and reconcile to the grant awards on a regular basis.
Information on Federal Programs
U.S. Department of Energy - Weatherization Assistance for Low-Income Persons (passed
through the North Dakota Division of Community Services, Award # 5073-DOE22-30)
AL# 81.042
Criteria – Section 2 CFR sections 200.320(a) and (b) of the Uniform Guidance requires that the
auditee following specific guidelines for selection of vendors in excess of the micro-purchase
threshold which includes maintaining documentation related to their rationale for selections and
agreement for goods and services to be provided.
Condition – For the year ended June 30, 2023, we requested the entities documentation
supporting rationale for a selection of vendors and signed contracts for expenditures in excess
of the micro-purchase threshold. In a sample of 11 vendors selected for testing, one vendor did
not have proper documentation rationale for selection and a signed contract.
Cause – Internal controls are not designed to allow for the appropriate retention of
documentation to support that appropriate procurement standards have been met.
Effect or Potential Effect – Federal expenditures may be paid to vendors that are not in
compliance with procurement standards under Uniform Guidance.
Questioned Costs – Undeterminable
Context – The vendor selected for testing was a long-standing relationship and while
appropriate documentation may have been obtained at the start of the agreement, it was not
maintained for the year under audit.
Repeat Finding – This is a new finding.
Recommendation – The entity should review their list of vendors to determine which fall under
the Procurement, Suspension and Debarment standards and obtain any additional missing
support or contracts to establish compliance.
Information on Federal Program:
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4570-LIHEAP19-
30, 4773-LIHEAP20-30, and 4995-LIHEAP21-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #4780-LIHEAPEF20-30, 4988-LIHEAPEF21-30, 5131-
LIHEAPEF22-30, 5055-LIHEAPEF-ARPA-30)
AL# 93.568
U.S. Department of Energy - Weatherization Assistance for Low-Income Persons (passed
through the North Dakota Division of Community Services, Award # 5073-DOE22-30)
AL# 81.042
Criteria – Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the
schedule of expenditure of federal awards (SEFA). Internal controls should be adequately
designed and implemented to allow for the accurate and timely preparation of the SEFA.
Condition – For the year ended June 30, 2023, we reconciled the auditee prepared SEFA to
underlying general ledger amounts and other records. In doing this, we noted that the
expenditures were misstated.
Cause – Internal controls are not designed to allow for the reconciliation of fund expenses to
grant awards.
Effect or Potential Effect – As the entity’s auditors, we were requested to assist in the
preparation of the SEFA and required notes.
Questioned Costs – None noted.
Context – The auditee-prepared SEFA listed expenditures for the entire grant award regardless
of the fiscal year and all expenses incurred after the grant funds were exhausted.
Repeat Finding – This is a repeat finding of 2022-003 from the prior year.
Recommendation – The entity should pull the internal fund income statements by fiscal year
and reconcile to the grant awards on a regular basis.
Information on Federal Program:
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4570-LIHEAP19-
30, 4773-LIHEAP20-30, and 4995-LIHEAP21-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #4780-LIHEAPEF20-30, 4988-LIHEAPEF21-30, 5131-
LIHEAPEF22-30, 5055-LIHEAPEF-ARPA-30)
AL# 93.568
U.S. Department of Energy - Weatherization Assistance for Low-Income Persons (passed
through the North Dakota Division of Community Services, Award # 5073-DOE22-30)
AL# 81.042
Criteria – Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the
schedule of expenditure of federal awards (SEFA). Internal controls should be adequately
designed and implemented to allow for the accurate and timely preparation of the SEFA.
Condition – For the year ended June 30, 2023, we reconciled the auditee prepared SEFA to
underlying general ledger amounts and other records. In doing this, we noted that the
expenditures were misstated.
Cause – Internal controls are not designed to allow for the reconciliation of fund expenses to
grant awards.
Effect or Potential Effect – As the entity’s auditors, we were requested to assist in the
preparation of the SEFA and required notes.
Questioned Costs – None noted.
Context – The auditee-prepared SEFA listed expenditures for the entire grant award regardless
of the fiscal year and all expenses incurred after the grant funds were exhausted.
Repeat Finding – This is a repeat finding of 2022-003 from the prior year.
Recommendation – The entity should pull the internal fund income statements by fiscal year
and reconcile to the grant awards on a regular basis.
Information on Federal Program:
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4570-LIHEAP19-
30, 4773-LIHEAP20-30, and 4995-LIHEAP21-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #4780-LIHEAPEF20-30, 4988-LIHEAPEF21-30, 5131-
LIHEAPEF22-30, 5055-LIHEAPEF-ARPA-30)
AL# 93.568
U.S. Department of Energy - Weatherization Assistance for Low-Income Persons (passed
through the North Dakota Division of Community Services, Award # 5073-DOE22-30)
AL# 81.042
Criteria – Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the
schedule of expenditure of federal awards (SEFA). Internal controls should be adequately
designed and implemented to allow for the accurate and timely preparation of the SEFA.
Condition – For the year ended June 30, 2023, we reconciled the auditee prepared SEFA to
underlying general ledger amounts and other records. In doing this, we noted that the
expenditures were misstated.
Cause – Internal controls are not designed to allow for the reconciliation of fund expenses to
grant awards.
Effect or Potential Effect – As the entity’s auditors, we were requested to assist in the
preparation of the SEFA and required notes.
Questioned Costs – None noted.
Context – The auditee-prepared SEFA listed expenditures for the entire grant award regardless
of the fiscal year and all expenses incurred after the grant funds were exhausted.
Repeat Finding – This is a repeat finding of 2022-003 from the prior year.
Recommendation – The entity should pull the internal fund income statements by fiscal year
and reconcile to the grant awards on a regular basis.
Information on Federal Program:
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4570-LIHEAP19-
30, 4773-LIHEAP20-30, and 4995-LIHEAP21-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #4780-LIHEAPEF20-30, 4988-LIHEAPEF21-30, 5131-
LIHEAPEF22-30, 5055-LIHEAPEF-ARPA-30)
AL# 93.568
U.S. Department of Energy - Weatherization Assistance for Low-Income Persons (passed
through the North Dakota Division of Community Services, Award # 5073-DOE22-30)
AL# 81.042
Criteria – Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the
schedule of expenditure of federal awards (SEFA). Internal controls should be adequately
designed and implemented to allow for the accurate and timely preparation of the SEFA.
Condition – For the year ended June 30, 2023, we reconciled the auditee prepared SEFA to
underlying general ledger amounts and other records. In doing this, we noted that the
expenditures were misstated.
Cause – Internal controls are not designed to allow for the reconciliation of fund expenses to
grant awards.
Effect or Potential Effect – As the entity’s auditors, we were requested to assist in the
preparation of the SEFA and required notes.
Questioned Costs – None noted.
Context – The auditee-prepared SEFA listed expenditures for the entire grant award regardless
of the fiscal year and all expenses incurred after the grant funds were exhausted.
Repeat Finding – This is a repeat finding of 2022-003 from the prior year.
Recommendation – The entity should pull the internal fund income statements by fiscal year
and reconcile to the grant awards on a regular basis.
Information on Federal Programs
U.S. Department of Energy - Weatherization Assistance for Low-Income Persons (passed
through the North Dakota Division of Community Services, Award # 5073-DOE22-30)
AL# 81.042
Criteria – Section 2 CFR sections 200.320(a) and (b) of the Uniform Guidance requires that the
auditee following specific guidelines for selection of vendors in excess of the micro-purchase
threshold which includes maintaining documentation related to their rationale for selections and
agreement for goods and services to be provided.
Condition – For the year ended June 30, 2023, we requested the entities documentation
supporting rationale for a selection of vendors and signed contracts for expenditures in excess
of the micro-purchase threshold. In a sample of 11 vendors selected for testing, one vendor did
not have proper documentation rationale for selection and a signed contract.
Cause – Internal controls are not designed to allow for the appropriate retention of
documentation to support that appropriate procurement standards have been met.
Effect or Potential Effect – Federal expenditures may be paid to vendors that are not in
compliance with procurement standards under Uniform Guidance.
Questioned Costs – Undeterminable
Context – The vendor selected for testing was a long-standing relationship and while
appropriate documentation may have been obtained at the start of the agreement, it was not
maintained for the year under audit.
Repeat Finding – This is a new finding.
Recommendation – The entity should review their list of vendors to determine which fall under
the Procurement, Suspension and Debarment standards and obtain any additional missing
support or contracts to establish compliance.
Information on Federal Program:
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4570-LIHEAP19-
30, 4773-LIHEAP20-30, and 4995-LIHEAP21-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #4780-LIHEAPEF20-30, 4988-LIHEAPEF21-30, 5131-
LIHEAPEF22-30, 5055-LIHEAPEF-ARPA-30)
AL# 93.568
U.S. Department of Energy - Weatherization Assistance for Low-Income Persons (passed
through the North Dakota Division of Community Services, Award # 5073-DOE22-30)
AL# 81.042
Criteria – Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the
schedule of expenditure of federal awards (SEFA). Internal controls should be adequately
designed and implemented to allow for the accurate and timely preparation of the SEFA.
Condition – For the year ended June 30, 2023, we reconciled the auditee prepared SEFA to
underlying general ledger amounts and other records. In doing this, we noted that the
expenditures were misstated.
Cause – Internal controls are not designed to allow for the reconciliation of fund expenses to
grant awards.
Effect or Potential Effect – As the entity’s auditors, we were requested to assist in the
preparation of the SEFA and required notes.
Questioned Costs – None noted.
Context – The auditee-prepared SEFA listed expenditures for the entire grant award regardless
of the fiscal year and all expenses incurred after the grant funds were exhausted.
Repeat Finding – This is a repeat finding of 2022-003 from the prior year.
Recommendation – The entity should pull the internal fund income statements by fiscal year
and reconcile to the grant awards on a regular basis.
Information on Federal Program:
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4570-LIHEAP19-
30, 4773-LIHEAP20-30, and 4995-LIHEAP21-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #4780-LIHEAPEF20-30, 4988-LIHEAPEF21-30, 5131-
LIHEAPEF22-30, 5055-LIHEAPEF-ARPA-30)
AL# 93.568
U.S. Department of Energy - Weatherization Assistance for Low-Income Persons (passed
through the North Dakota Division of Community Services, Award # 5073-DOE22-30)
AL# 81.042
Criteria – Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the
schedule of expenditure of federal awards (SEFA). Internal controls should be adequately
designed and implemented to allow for the accurate and timely preparation of the SEFA.
Condition – For the year ended June 30, 2023, we reconciled the auditee prepared SEFA to
underlying general ledger amounts and other records. In doing this, we noted that the
expenditures were misstated.
Cause – Internal controls are not designed to allow for the reconciliation of fund expenses to
grant awards.
Effect or Potential Effect – As the entity’s auditors, we were requested to assist in the
preparation of the SEFA and required notes.
Questioned Costs – None noted.
Context – The auditee-prepared SEFA listed expenditures for the entire grant award regardless
of the fiscal year and all expenses incurred after the grant funds were exhausted.
Repeat Finding – This is a repeat finding of 2022-003 from the prior year.
Recommendation – The entity should pull the internal fund income statements by fiscal year
and reconcile to the grant awards on a regular basis.
Information on Federal Program:
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4570-LIHEAP19-
30, 4773-LIHEAP20-30, and 4995-LIHEAP21-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #4780-LIHEAPEF20-30, 4988-LIHEAPEF21-30, 5131-
LIHEAPEF22-30, 5055-LIHEAPEF-ARPA-30)
AL# 93.568
U.S. Department of Energy - Weatherization Assistance for Low-Income Persons (passed
through the North Dakota Division of Community Services, Award # 5073-DOE22-30)
AL# 81.042
Criteria – Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the
schedule of expenditure of federal awards (SEFA). Internal controls should be adequately
designed and implemented to allow for the accurate and timely preparation of the SEFA.
Condition – For the year ended June 30, 2023, we reconciled the auditee prepared SEFA to
underlying general ledger amounts and other records. In doing this, we noted that the
expenditures were misstated.
Cause – Internal controls are not designed to allow for the reconciliation of fund expenses to
grant awards.
Effect or Potential Effect – As the entity’s auditors, we were requested to assist in the
preparation of the SEFA and required notes.
Questioned Costs – None noted.
Context – The auditee-prepared SEFA listed expenditures for the entire grant award regardless
of the fiscal year and all expenses incurred after the grant funds were exhausted.
Repeat Finding – This is a repeat finding of 2022-003 from the prior year.
Recommendation – The entity should pull the internal fund income statements by fiscal year
and reconcile to the grant awards on a regular basis.