Audit 311021

Finding 2023-002 – Reporting and Close Out – Significant Deficiency in Internal Controls over Compliance Federal program information Funding Agency: Department of the Treasury Program Title: Tribal Broadband Connectivity Program Federal Assistance Listing Number: 11.029 Questioned Costs: Undeterminable Criteria: Federal regulations and grant and contract conditions require that applicable reports be properly supported by accounting records before submitted. This ensures compliance with regulatory requirements and the terms of the grants and contracts involved. Accuracy and transparency in accounting records are crucial for demonstrating how funds are used and for meeting reporting obligations effectively. Condition: We noted that the District did not have controls in place to ensure that all required reports were supported by underlying accounting records, properly reviewed prior to submission and that all supporting documentation was maintained. Tribal Broadband Connectivity Program (ALN 11.029) - For financial reports (SF 425 report) that were selected for testing, the District did not retain sufficient and accurate documentation to support the amounts reported within the reports that reconciled back to the District’s general ledger. Questioned Costs: The calculation needed for questioned costs was not determinable for these instances of noncompliance. Cause: Control procedures have not been implemented to ensure reports are being prepared and adequately supported. Effect: Without centralized controls for monitoring the retention of documentation that supports the amounts in the reports, the reports may not be properly supported. Auditors’ Recommendations: The District should establish centralized controls that include identifying all required reports, implementing effective controls over report preparation, and a monitoring function to ensure these controls are in place and operating effectively for timely and accurate report submission.

Finding 2023-002 – Reporting and Close Out – Significant Deficiency in Internal Controls over Compliance Federal program information Funding Agency: Department of the Treasury Program Title: Tribal Broadband Connectivity Program Federal Assistance Listing Number: 11.029 Questioned Costs: Undeterminable Criteria: Federal regulations and grant and contract conditions require that applicable reports be properly supported by accounting records before submitted. This ensures compliance with regulatory requirements and the terms of the grants and contracts involved. Accuracy and transparency in accounting records are crucial for demonstrating how funds are used and for meeting reporting obligations effectively. Condition: We noted that the District did not have controls in place to ensure that all required reports were supported by underlying accounting records, properly reviewed prior to submission and that all supporting documentation was maintained. Tribal Broadband Connectivity Program (ALN 11.029) - For financial reports (SF 425 report) that were selected for testing, the District did not retain sufficient and accurate documentation to support the amounts reported within the reports that reconciled back to the District’s general ledger. Questioned Costs: The calculation needed for questioned costs was not determinable for these instances of noncompliance. Cause: Control procedures have not been implemented to ensure reports are being prepared and adequately supported. Effect: Without centralized controls for monitoring the retention of documentation that supports the amounts in the reports, the reports may not be properly supported. Auditors’ Recommendations: The District should establish centralized controls that include identifying all required reports, implementing effective controls over report preparation, and a monitoring function to ensure these controls are in place and operating effectively for timely and accurate report submission.