FAC Explorer

Audit 295898

FY End
2023-09-30
Total Expended
$980,759
Findings
4
Programs
2
Organization: International Pacific Halibut Commission (WA)
Year: 2023 Accepted: 2024-03-19
Auditor: Clark Nuber P S

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
381175 2023-002 Significant Deficiency - BH
381176 2023-003 Significant Deficiency - I
957617 2023-002 Significant Deficiency - BH
957618 2023-003 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
11.437 Pacific Fisheries Data Program $820,843 Yes 2
11.472 Unallied Science Program $88,310 - 0

Contacts

Name Title Type
TWG2J3J9GQN1 David Wilson Auditee
2066341838 Mitchell Hansen Auditor
No contacts on file

Notes to SEFA

Title: Note 1-Basic of Presentation Accounting Policies: Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: IPHC has elected to use the 10-percent de minimis indirect cost under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of International Pacific Halibut Commission (IPHC) under programs of the federal government for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of IPHC, it is not intended to and does not present the financial position, changes in net assets, functional expenses or cash flows of IPHC.
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: IPHC has elected to use the 10-percent de minimis indirect cost under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3 - Indirect Cost Rate Accounting Policies: Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: IPHC has elected to use the 10-percent de minimis indirect cost under the Uniform Guidance. IPHC has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
Finding 2023-002 Significant deficiency in internal controls over compliance related to allowable costs and period of performance. Federal Agency: U.S. Department of Commerce Program Title: Pacific Fisheries Data Program Assistance Listing Number: 11.437 Award Numbers: NOAA-NMFS-AK-2023-2007663 Award Period: October 1, 2022 to September 30, 2027 Criteria 2 U.S. CFR Part 200.403, 404, and 405 of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards require that costs must be necessary and reasonable for the performance of the Federal Award, that costs be determined in accordance with GAAP, and that costs be adequately documented including the allocation of those costs. Condition/Context for Evaluation IPHC’s internal controls over non-payroll charges to the Federal Award did not include review for allowability, accrual in the proper period, or that adequate documentation existed to support the amounts charged or allocated. Three out of 25 non-payroll disbursements tested did not include evidence supporting one or more of these controls. Questioned Costs $2,674 Cause IPHC’s operation of internal controls were not sufficient to ensure allowable costs were charged in accordance with 2 U.S. CFR Part 200.403, 404, and 405 of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Effect or Potential Effect As a result, charges were made to Federal awards that were not allowable or allocable to the award. Repeat Finding Not applicable. Recommendation We recommend that IPHC ensure internal controls include reviewing costs charged to the Federal Award for conformity with 2 U.S. CFR Part 200.403, 404, and 405 of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards for allowability, allocability, and reasonableness. Views of Responsible Officials of Auditee Management concurs with the finding and has provided the accompanying corrective action plan.
Finding 2023-003
Finding 2023-003 Significant deficiency in internal controls over compliance related to procurement. Federal Agency: U.S. Department of Commerce Program Title: Pacific Fisheries Data Program Assistance Listing Number: 11.437 Award Numbers: NOAA-NMFS-AK-2023-2007663 Award Period: October 1, 2022 to September 30, 2027 Criteria 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Procurement Standards require that awardees use documented procurement procedures for the acquisition of property or services required under a Federal award or subaward. Condition/Context for Evaluation IPHC's internal controls over procurement do not include the controls and procedures required by 2 CFR 200.318(a) Questioned Costs Not applicable. Cause IPHC has not yet modified its procurement policies with the requirements of the 2 CFR Part 200 Subpart D Procurement Standards. Effect or Potential Effect As a result, IPHC cannot be certain that procurements were conducted in accordance with the 2 CFR Part 200 Subpart D Procurement Standards. Repeat Finding Not applicable. Recommendation We recommend that IPHC update its procurement policy to include all procurement requirements of 2 CFR Part 200 Subpart D. Views of Responsible Officials of Auditee Management concurs with the finding and has provided the accompanying corrective action plan.
Finding 2023-002
Finding 2023-002 Significant deficiency in internal controls over compliance related to allowable costs and period of performance. Federal Agency: U.S. Department of Commerce Program Title: Pacific Fisheries Data Program Assistance Listing Number: 11.437 Award Numbers: NOAA-NMFS-AK-2023-2007663 Award Period: October 1, 2022 to September 30, 2027 Criteria 2 U.S. CFR Part 200.403, 404, and 405 of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards require that costs must be necessary and reasonable for the performance of the Federal Award, that costs be determined in accordance with GAAP, and that costs be adequately documented including the allocation of those costs. Condition/Context for Evaluation IPHC’s internal controls over non-payroll charges to the Federal Award did not include review for allowability, accrual in the proper period, or that adequate documentation existed to support the amounts charged or allocated. Three out of 25 non-payroll disbursements tested did not include evidence supporting one or more of these controls. Questioned Costs $2,674 Cause IPHC’s operation of internal controls were not sufficient to ensure allowable costs were charged in accordance with 2 U.S. CFR Part 200.403, 404, and 405 of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Effect or Potential Effect As a result, charges were made to Federal awards that were not allowable or allocable to the award. Repeat Finding Not applicable. Recommendation We recommend that IPHC ensure internal controls include reviewing costs charged to the Federal Award for conformity with 2 U.S. CFR Part 200.403, 404, and 405 of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards for allowability, allocability, and reasonableness. Views of Responsible Officials of Auditee Management concurs with the finding and has provided the accompanying corrective action plan.
Finding 2023-003
Finding 2023-003 Significant deficiency in internal controls over compliance related to procurement. Federal Agency: U.S. Department of Commerce Program Title: Pacific Fisheries Data Program Assistance Listing Number: 11.437 Award Numbers: NOAA-NMFS-AK-2023-2007663 Award Period: October 1, 2022 to September 30, 2027 Criteria 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Procurement Standards require that awardees use documented procurement procedures for the acquisition of property or services required under a Federal award or subaward. Condition/Context for Evaluation IPHC's internal controls over procurement do not include the controls and procedures required by 2 CFR 200.318(a) Questioned Costs Not applicable. Cause IPHC has not yet modified its procurement policies with the requirements of the 2 CFR Part 200 Subpart D Procurement Standards. Effect or Potential Effect As a result, IPHC cannot be certain that procurements were conducted in accordance with the 2 CFR Part 200 Subpart D Procurement Standards. Repeat Finding Not applicable. Recommendation We recommend that IPHC update its procurement policy to include all procurement requirements of 2 CFR Part 200 Subpart D. Views of Responsible Officials of Auditee Management concurs with the finding and has provided the accompanying corrective action plan.