Audit 323232

FY End
2023-12-31
Total Expended
$1.08M
Findings
6
Programs
1
Year: 2023 Accepted: 2024-09-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
500929 2023-001 Significant Deficiency - AB
500930 2023-002 Significant Deficiency - G
500931 2023-003 Significant Deficiency - L
1077371 2023-001 Significant Deficiency - AB
1077372 2023-002 Significant Deficiency - G
1077373 2023-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
81.086 Conservation Research and Development $1.08M Yes 3

Contacts

Name Title Type
XKV8VM6CQHX3 Rhonda Conn (naadowekwe) Auditee
2182095096 Teresa McAlpine Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: Accrual Basis De Minimis Rate Used: Y Rate Explanation: DM rate used The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Organization under programs of the federal government for the year ended December 31, 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. Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
Title: Summary of significant accounting policies Accounting Policies: Accrual Basis De Minimis Rate Used: Y Rate Explanation: DM rate used Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A‐122, Cost Principles for Non‐Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023‐001: Information on the Federal Program: Assistance Listing Number 81.086— Upper Midwest Inter‐Tribal EV Charging Community Network. Compliance Requirement: Allowable Costs and Cost Principles, Activities Allowed or Unallowed Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including Activities Allowed or Unallowed, Allowable Costs and Cost Principles. Condition: Controls were not operating as designed to ensure that all travel reimbursements and payroll expenditures were reviewed and approved prior to payment. Causes: SDK notes that for the two reimbursement draw down dates selected for testing, pay for one of the three workers in each draw down request lacked proper review and approval of hours allocated to the grant. There was not adequate documentation of hours charged to the grant for the executive director as of the date of audit requests. For one of seven remaining non‐payroll transactions tested for allowability, approval documentation did not exist. Effect or Potential Effect: Unallowable costs or activities could be charged to the grant. Questioned Costs: None Context: There was not sufficient documentation available upon request to support a review and approval process of the Executive Director’s pay allocated to the grant nor for a travel reimbursement. Repeat Finding: No Recommendation: We recommend that a process for board review and approval of the executive director’s hours be implemented and performed on a regular (at least quarterly) basis. We additionally recommend approval be documented for all expenditures prior to charging to a federal grant. Views of Responsible Officials: Agree.
Finding 2023‐002: Information on the Federal Program: Assistance Listing Number 81.086— Upper Midwest Inter‐Tribal EV Charging Community Network. Compliance Requirement: Matching Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including Cost Match principles. Condition: Controls were not implemented to monitor cost match partners’ activities to ensure their expenditures comply with allowable cost activities. Causes: For one of three cost matching amounts recorded in 2023, detail of amounts reported as cost match was not available upon request by auditors, and therefore the detail had not been obtained by the Organization. Effect or Potential Effect: Unallowable costs or activities could be counted for cost match by match partners causing Native Sun to fall short of cost match requirements. Questioned Costs: None Context: The Organization did not initially have documentation with sufficient detail for $756,108 of expenses reported by a cost match partner during 2023. Repeat Finding: No Recommendation: We recommend a control be implemented to monitor cost match partners including obtaining, reviewing and retaining support for reported cost match amounts. Views of Responsible Officials: Agree.
Finding 2023‐003: Information on the Federal Program: Assistance Listing Number 81.086— Upper Midwest Inter‐Tribal EV Charging Community Network. Compliance Requirement: Reporting Type of Finding: Noncompliance and significant deficiency in internal control over compliance. Criteria: 2 CFR Part 170, Appendix A item I. a. 1: you must report, in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) at fsrs.gov, each action that obligates $25,000 or more in Federal funds for a subaward to an entity no later than the end of the month following the month in which the obligation was made. Data elements which must be reported include subawardee name, subawardee DUNS #, amount of subaward, subaward obligation/action date, subaward number and subaward project description. Condition: Per client inquiry and review of usaspending.gov, the subaward of DE‐EE0009865 to American Lung Association had not been reported in FSRS. Causes: Controls were not in place to ensure reporting of subawards to FSRS. Effect or Potential Effect: The subaward to American Lung Association, effective March 1, 2022, for the amount of $5,583,789, crossing three budget periods from March 1, 2022 to May 31, 2025 was not reported in FSRS. Of this award, $498,051 was passed through to the subrecipient in the year ended December 31, 2023. Questioned Costs: None Context: The award to American Lung Association was the only subaward related to the 2023 federal expenditures and was therefore selected for testing. Repeat Finding: No Recommendation: We recommend the organization adopt processes and controls to ensure FSRS reporting is completed on a timely basis for all subawards. Views of Responsible Officials: Agree.
Finding 2023‐001: Information on the Federal Program: Assistance Listing Number 81.086— Upper Midwest Inter‐Tribal EV Charging Community Network. Compliance Requirement: Allowable Costs and Cost Principles, Activities Allowed or Unallowed Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including Activities Allowed or Unallowed, Allowable Costs and Cost Principles. Condition: Controls were not operating as designed to ensure that all travel reimbursements and payroll expenditures were reviewed and approved prior to payment. Causes: SDK notes that for the two reimbursement draw down dates selected for testing, pay for one of the three workers in each draw down request lacked proper review and approval of hours allocated to the grant. There was not adequate documentation of hours charged to the grant for the executive director as of the date of audit requests. For one of seven remaining non‐payroll transactions tested for allowability, approval documentation did not exist. Effect or Potential Effect: Unallowable costs or activities could be charged to the grant. Questioned Costs: None Context: There was not sufficient documentation available upon request to support a review and approval process of the Executive Director’s pay allocated to the grant nor for a travel reimbursement. Repeat Finding: No Recommendation: We recommend that a process for board review and approval of the executive director’s hours be implemented and performed on a regular (at least quarterly) basis. We additionally recommend approval be documented for all expenditures prior to charging to a federal grant. Views of Responsible Officials: Agree.
Finding 2023‐002: Information on the Federal Program: Assistance Listing Number 81.086— Upper Midwest Inter‐Tribal EV Charging Community Network. Compliance Requirement: Matching Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including Cost Match principles. Condition: Controls were not implemented to monitor cost match partners’ activities to ensure their expenditures comply with allowable cost activities. Causes: For one of three cost matching amounts recorded in 2023, detail of amounts reported as cost match was not available upon request by auditors, and therefore the detail had not been obtained by the Organization. Effect or Potential Effect: Unallowable costs or activities could be counted for cost match by match partners causing Native Sun to fall short of cost match requirements. Questioned Costs: None Context: The Organization did not initially have documentation with sufficient detail for $756,108 of expenses reported by a cost match partner during 2023. Repeat Finding: No Recommendation: We recommend a control be implemented to monitor cost match partners including obtaining, reviewing and retaining support for reported cost match amounts. Views of Responsible Officials: Agree.
Finding 2023‐003: Information on the Federal Program: Assistance Listing Number 81.086— Upper Midwest Inter‐Tribal EV Charging Community Network. Compliance Requirement: Reporting Type of Finding: Noncompliance and significant deficiency in internal control over compliance. Criteria: 2 CFR Part 170, Appendix A item I. a. 1: you must report, in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) at fsrs.gov, each action that obligates $25,000 or more in Federal funds for a subaward to an entity no later than the end of the month following the month in which the obligation was made. Data elements which must be reported include subawardee name, subawardee DUNS #, amount of subaward, subaward obligation/action date, subaward number and subaward project description. Condition: Per client inquiry and review of usaspending.gov, the subaward of DE‐EE0009865 to American Lung Association had not been reported in FSRS. Causes: Controls were not in place to ensure reporting of subawards to FSRS. Effect or Potential Effect: The subaward to American Lung Association, effective March 1, 2022, for the amount of $5,583,789, crossing three budget periods from March 1, 2022 to May 31, 2025 was not reported in FSRS. Of this award, $498,051 was passed through to the subrecipient in the year ended December 31, 2023. Questioned Costs: None Context: The award to American Lung Association was the only subaward related to the 2023 federal expenditures and was therefore selected for testing. Repeat Finding: No Recommendation: We recommend the organization adopt processes and controls to ensure FSRS reporting is completed on a timely basis for all subawards. Views of Responsible Officials: Agree.