FAC Explorer

Audit 323813

FY End
2020-09-30
Total Expended
$15.34M
Findings
24
Programs
2
Organization: Assiniboine and Sioux Rural Water Supply System (MT)
Year: 2020 Accepted: 2024-10-03
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
501732 2020-002 Significant Deficiency Yes AB
501733 2020-003 Material Weakness Yes AB
501734 2020-004 Significant Deficiency Yes AB
501735 2020-005 Material Weakness - AB
501736 2020-006 Material Weakness Yes L
501737 2020-007 Material Weakness - L
501738 2020-008 Significant Deficiency - AB
501739 2020-009 Significant Deficiency - AB
501740 2020-010 Significant Deficiency Yes AB
501741 2020-011 Significant Deficiency - AB
501742 2020-012 Significant Deficiency Yes L
501743 2020-013 Significant Deficiency Yes L
1078174 2020-002 Significant Deficiency Yes AB
1078175 2020-003 Material Weakness Yes AB
1078176 2020-004 Significant Deficiency Yes AB
1078177 2020-005 Material Weakness - AB
1078178 2020-006 Material Weakness Yes L
1078179 2020-007 Material Weakness - L
1078180 2020-008 Significant Deficiency - AB
1078181 2020-009 Significant Deficiency - AB
1078182 2020-010 Significant Deficiency Yes AB
1078183 2020-011 Significant Deficiency - AB
1078184 2020-012 Significant Deficiency Yes L
1078185 2020-013 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
15.516 Fort Peck Reservation Rural Water System $12.18M Yes 6
15.048 Bureau of Indian Affairs Facilities Operations and Maintenance $3.15M Yes 6

Contacts

Name Title Type
HCDNLNBC5MN1 Ashleigh Weeks Auditee
4067685719 Guadalupe "lupita" Martinez Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 GENERAL Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 to the ASRWSS’s financial statements. De Minimis Rate Used: N Rate Explanation: ASRWSS has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of ASRWSS under programs of the federal government for the year ended September 30, 2020, and is presented on the accrual basis of accounting. 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 ASRWSS, it is not intended to and does not present the financial position or changes in net position of ASRWSS. ASRWSS did not pass-through any federal grant funds to subrecipients during the year ended September 30, 2020.
Title: NOTE 2 INDIRECT COST RATE Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 to the ASRWSS’s financial statements. De Minimis Rate Used: N Rate Explanation: ASRWSS has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. ASRWSS has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE 3 BASIS OF ACCOUNTING Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 to the ASRWSS’s financial statements. De Minimis Rate Used: N Rate Explanation: ASRWSS has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 to the ASRWSS’s financial statements.

Finding Details

Finding 2020-002
2020-002 Allowable Costs/Costs Principles – Nonpayroll Expenses Federal Agency: U.S. Department of the Interior Federal Program Title: Bureau of Indian Affairs Facilities Operations and Maintenance ALN: 15.048 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Numbers and Period: A17AV00174 September 30, 2021 A13AV00271 September 30, 2016 A19AV00094 September 30, 2023 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of expenditures, it was noted that of the 60 samples tested, 2 pay applications or invoices were not adequately supported or authorized. Questioned Costs: Known questioned costs of $3,401.79. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed. Effect: ASRWSS is at risk of expending monies that are not necessary and reasonable for the administration of the award. Lack of proper controls can result in misappropriation of ASRWW resources. Repeat Finding: This finding was issued as prior year reference number 2019-002. Recommendation: CLA recommend that ASRWSS policies and procedures be followed consistently. We also recommend that supporting documentation be maintained and properly documented. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-003
2020-003 Allowable Costs/Cost Principles – Payroll Expenses Federal Agency: U.S. Department of the Interior Federal Program Title: Bureau of Indian Affairs Facilities Operations and Maintenance ALN Number: 15.048 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Numbers and Period: A17AV00174 September 30, 2021 A13AV00271 September 30, 2016 A19AV00094 September 30, 2023 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria or Specific Requirement: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 17 disbursements were not supported by an employee wage form on file. Questioned Costs: Known question costs of $22,574.36. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This finding was issued as prior year reference number 2019-003. Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-004
2020-004 Allowable Costs/Cost Principles – Payroll Federal Agency: U.S. Department of the Interior Federal Program Title: Bureau of Indian Affairs Facilities Operations and Maintenance ALN Number: 15.048 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Numbers and Period: A17AV00174 September 30, 2021 A13AV00271 September 30, 2016 A19AV00094 September 30, 2023 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria or Specific Requirement: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 4 disbursements were not signed by employee and/or supervisor. Questioned Costs: Known question costs of $10,329.55. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This finding was issued as prior year reference number 2019-004. Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-005
2020-005 Allowable Costs/Cost Principles – Payroll Federal Agency: U.S. Department of the Interior Federal Program Title: Bureau of Indian Affairs Facilities Operations and Maintenance ALN Number: 15.048 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Numbers and Period: A17AV00174 September 30, 2021 A13AV00271 September 30, 2016 A19AV00094 September 30, 2023 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria or Specific Requirement: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 23 disbursements were paid at a rate different than the approved wage form. Questioned Costs: Known question costs of $44,608.87. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-006
2020-006 Reporting Federal Agency: U.S. Department of the Interior Federal Program Title: Bureau of Indian Affairs Facilities Operations and Maintenance ALN Number: 15.048 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Numbers and Period: A17AV00174 September 30, 2021 A13AV00271 September 30, 2016 A19AV00094 September 30, 2023 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria or Specific Requirement: Annual financial reports should accurately reflect the period covered. Condition/Context: During our audit testing, we noted that 1 of the quarterly reports SF-425 reports tested were inaccurate. Questioned Costs: Known question costs of $297,854.53. Unable to determine likely questioned costs. Cause: Proper accrual accounting and records were not maintained. Effect: Inaccurate reports. Repeat Finding: This finding was issued as prior year reference number 2019-008. Recommendation: CLA recommend more thorough accounting and review over financial reports. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-007
2020-007 Reporting Federal Agency: U.S. Department of the Interior Federal Program Title: Bureau of Indian Affairs Facilities Operations and Maintenance ALN Number: 15.048 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Numbers and Period: A17AV00174 September 30, 2021 A13AV00271 September 30, 2016 A19AV00094 September 30, 2023 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria or Specific Requirement: Annual financial reports should accurately reflect the period covered. Condition/Context: Actual expenditures exceed budgeted amounts for multiple cost items. Questioned Costs: Known question costs of $94,693.25. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommend that ASRWSS policies and procedures are followed consistently. We also recommend that supporting documentation is maintained and properly documented. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-008
ederal Agency: U.S. Department of Reclamation Federal Program Title: Fort Peck Reservation Rural Water System ALN Number: 15.516 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: R03AV60749 March 31, 2019 R18AV00011 September 30, 2022 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of expenditures, it was noted that of the 60 samples tested, 1 purchase order was created after the invoice. Questioned Costs: Known questioned costs of $14,525.00. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed. Effect: ASRWSS is at risk of expending monies that are not necessary and reasonable for the administration of the award. Lack of proper controls can result in misappropriation of ASRWW resources. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommend that ASRWSS policies and procedures be followed consistently. We also recommend that supporting documentation be maintained and properly documented. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-009
Federal Agency: U.S. Department of Reclamation Federal Program Title: Fort Peck Reservation Rural Water System ALN Number: 15.516 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: R03AV60749 March 31, 2019 R18AV00011 September 30, 2022 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria or Specific Requirement: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 4 disbursements were not supported by an employee wage form on file. Questioned Costs: Known question costs of $581.22. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-010
2020-010 Allowable Costs/Cost Principles – Payroll Federal Agency: U.S. Department of Reclamation Federal Program Title: Fort Peck Reservation Rural Water System ALN Number: 15.516 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: R03AV60749 March 31, 2019 R18AV00011 September 30, 2022 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria or Specific Requirement: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 14 disbursements were not signed by employee and/or supervisor. Questioned Costs: Known question costs of $6,197.81. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This finding was issued as prior year reference number 2019-005. Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-011
2020-011 Allowable Costs/Cost Principles – Payroll Federal Agency: U.S. Department of Reclamation Federal Program Title: Fort Peck Reservation Rural Water System ALN Number: 15.516 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: R03AV60749 March 31, 2019 R18AV00011 September 30, 2022 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria or Specific Requirement: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 18 disbursements were paid at a rate different than the approved wage form. Questioned Costs: Known question costs of $21,610.87. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-012
2020-012 Reporting Federal Agency: U.S. Department of Reclamation Federal Program Title: Fort Peck Reservation Rural Water System ALN Number: 15.516 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: R03AV60749 March 31, 2019 R18AV00011 September 30, 2022 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria or Specific Requirement: Annual financial reports should accurately reflect the period covered. Condition/Context: During our audit testing, we noted that 1 of the quarterly reports SF-425 reports tested were inaccurate. Questioned Costs: Unable to determine likely questioned costs. Cause: Proper accrual accounting and records were not maintained. Effect: Inaccurate reports. Repeat Finding: This finding was issued as prior year reference number 2019-009. Recommendation: CLA recommend more thorough accounting and review over financial reports. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-013
2020-013 Reporting Federal Agency: U.S. Department of Reclamation Federal Program Title: Fort Peck Reservation Rural Water System ALN Number: 15.516 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: R03AV60749 March 31, 2019 R18AV00011 September 30, 2022 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria or Specific Requirement: Annual financial reports should accurately reflect the period covered. Condition/Context: Actual expenditures exceed budgeted amounts for multiple cost items. Questioned Costs: Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This finding was issued as prior year reference number 2019-010. Recommendation: CLA recommend that ASRWSS policies and procedures are followed consistently. We also recommend that supporting documentation is maintained and properly documented. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan. Federal regulations, Title 2 U.S. Code of Federal Regulations Section 200.511, state, “the auditee is responsible for follow-up and corrective action on all audit findings.” As part of this responsibility, the auditee reports the corrective action it has taken for each finding in the September 30, 2019 Schedule of Findings and Questioned Costs.
Finding 2020-002
2020-002 Allowable Costs/Costs Principles – Nonpayroll Expenses Federal Agency: U.S. Department of the Interior Federal Program Title: Bureau of Indian Affairs Facilities Operations and Maintenance ALN: 15.048 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Numbers and Period: A17AV00174 September 30, 2021 A13AV00271 September 30, 2016 A19AV00094 September 30, 2023 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of expenditures, it was noted that of the 60 samples tested, 2 pay applications or invoices were not adequately supported or authorized. Questioned Costs: Known questioned costs of $3,401.79. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed. Effect: ASRWSS is at risk of expending monies that are not necessary and reasonable for the administration of the award. Lack of proper controls can result in misappropriation of ASRWW resources. Repeat Finding: This finding was issued as prior year reference number 2019-002. Recommendation: CLA recommend that ASRWSS policies and procedures be followed consistently. We also recommend that supporting documentation be maintained and properly documented. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-003
2020-003 Allowable Costs/Cost Principles – Payroll Expenses Federal Agency: U.S. Department of the Interior Federal Program Title: Bureau of Indian Affairs Facilities Operations and Maintenance ALN Number: 15.048 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Numbers and Period: A17AV00174 September 30, 2021 A13AV00271 September 30, 2016 A19AV00094 September 30, 2023 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria or Specific Requirement: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 17 disbursements were not supported by an employee wage form on file. Questioned Costs: Known question costs of $22,574.36. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This finding was issued as prior year reference number 2019-003. Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-004
2020-004 Allowable Costs/Cost Principles – Payroll Federal Agency: U.S. Department of the Interior Federal Program Title: Bureau of Indian Affairs Facilities Operations and Maintenance ALN Number: 15.048 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Numbers and Period: A17AV00174 September 30, 2021 A13AV00271 September 30, 2016 A19AV00094 September 30, 2023 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria or Specific Requirement: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 4 disbursements were not signed by employee and/or supervisor. Questioned Costs: Known question costs of $10,329.55. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This finding was issued as prior year reference number 2019-004. Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-005
2020-005 Allowable Costs/Cost Principles – Payroll Federal Agency: U.S. Department of the Interior Federal Program Title: Bureau of Indian Affairs Facilities Operations and Maintenance ALN Number: 15.048 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Numbers and Period: A17AV00174 September 30, 2021 A13AV00271 September 30, 2016 A19AV00094 September 30, 2023 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria or Specific Requirement: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 23 disbursements were paid at a rate different than the approved wage form. Questioned Costs: Known question costs of $44,608.87. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-006
2020-006 Reporting Federal Agency: U.S. Department of the Interior Federal Program Title: Bureau of Indian Affairs Facilities Operations and Maintenance ALN Number: 15.048 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Numbers and Period: A17AV00174 September 30, 2021 A13AV00271 September 30, 2016 A19AV00094 September 30, 2023 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria or Specific Requirement: Annual financial reports should accurately reflect the period covered. Condition/Context: During our audit testing, we noted that 1 of the quarterly reports SF-425 reports tested were inaccurate. Questioned Costs: Known question costs of $297,854.53. Unable to determine likely questioned costs. Cause: Proper accrual accounting and records were not maintained. Effect: Inaccurate reports. Repeat Finding: This finding was issued as prior year reference number 2019-008. Recommendation: CLA recommend more thorough accounting and review over financial reports. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-007
2020-007 Reporting Federal Agency: U.S. Department of the Interior Federal Program Title: Bureau of Indian Affairs Facilities Operations and Maintenance ALN Number: 15.048 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Numbers and Period: A17AV00174 September 30, 2021 A13AV00271 September 30, 2016 A19AV00094 September 30, 2023 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria or Specific Requirement: Annual financial reports should accurately reflect the period covered. Condition/Context: Actual expenditures exceed budgeted amounts for multiple cost items. Questioned Costs: Known question costs of $94,693.25. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommend that ASRWSS policies and procedures are followed consistently. We also recommend that supporting documentation is maintained and properly documented. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-008
ederal Agency: U.S. Department of Reclamation Federal Program Title: Fort Peck Reservation Rural Water System ALN Number: 15.516 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: R03AV60749 March 31, 2019 R18AV00011 September 30, 2022 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of expenditures, it was noted that of the 60 samples tested, 1 purchase order was created after the invoice. Questioned Costs: Known questioned costs of $14,525.00. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed. Effect: ASRWSS is at risk of expending monies that are not necessary and reasonable for the administration of the award. Lack of proper controls can result in misappropriation of ASRWW resources. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommend that ASRWSS policies and procedures be followed consistently. We also recommend that supporting documentation be maintained and properly documented. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-009
Federal Agency: U.S. Department of Reclamation Federal Program Title: Fort Peck Reservation Rural Water System ALN Number: 15.516 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: R03AV60749 March 31, 2019 R18AV00011 September 30, 2022 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria or Specific Requirement: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 4 disbursements were not supported by an employee wage form on file. Questioned Costs: Known question costs of $581.22. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-010
2020-010 Allowable Costs/Cost Principles – Payroll Federal Agency: U.S. Department of Reclamation Federal Program Title: Fort Peck Reservation Rural Water System ALN Number: 15.516 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: R03AV60749 March 31, 2019 R18AV00011 September 30, 2022 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria or Specific Requirement: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 14 disbursements were not signed by employee and/or supervisor. Questioned Costs: Known question costs of $6,197.81. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This finding was issued as prior year reference number 2019-005. Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-011
2020-011 Allowable Costs/Cost Principles – Payroll Federal Agency: U.S. Department of Reclamation Federal Program Title: Fort Peck Reservation Rural Water System ALN Number: 15.516 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: R03AV60749 March 31, 2019 R18AV00011 September 30, 2022 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria or Specific Requirement: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 18 disbursements were paid at a rate different than the approved wage form. Questioned Costs: Known question costs of $21,610.87. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-012
2020-012 Reporting Federal Agency: U.S. Department of Reclamation Federal Program Title: Fort Peck Reservation Rural Water System ALN Number: 15.516 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: R03AV60749 March 31, 2019 R18AV00011 September 30, 2022 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria or Specific Requirement: Annual financial reports should accurately reflect the period covered. Condition/Context: During our audit testing, we noted that 1 of the quarterly reports SF-425 reports tested were inaccurate. Questioned Costs: Unable to determine likely questioned costs. Cause: Proper accrual accounting and records were not maintained. Effect: Inaccurate reports. Repeat Finding: This finding was issued as prior year reference number 2019-009. Recommendation: CLA recommend more thorough accounting and review over financial reports. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.
Finding 2020-013
2020-013 Reporting Federal Agency: U.S. Department of Reclamation Federal Program Title: Fort Peck Reservation Rural Water System ALN Number: 15.516 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: R03AV60749 March 31, 2019 R18AV00011 September 30, 2022 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria or Specific Requirement: Annual financial reports should accurately reflect the period covered. Condition/Context: Actual expenditures exceed budgeted amounts for multiple cost items. Questioned Costs: Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This finding was issued as prior year reference number 2019-010. Recommendation: CLA recommend that ASRWSS policies and procedures are followed consistently. We also recommend that supporting documentation is maintained and properly documented. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan. Federal regulations, Title 2 U.S. Code of Federal Regulations Section 200.511, state, “the auditee is responsible for follow-up and corrective action on all audit findings.” As part of this responsibility, the auditee reports the corrective action it has taken for each finding in the September 30, 2019 Schedule of Findings and Questioned Costs.