Audit 327661

2023-004 Reporting Errors in Non-Major Agreements (Other Noncompliance) Criteria – Management is responsible for completing accurate reports for submission to the U.S. Department of the Interior. Condition and Context – Through our audit of the Schedule of Expenditures of Federal Awards (SEFA), we noted errors in reports submitted to the U.S. Department of the Interior for a significant award that is not considered a “major” program. The Federal Financial Report for award #F22AC02260 under 15.630 Coastal Program showed cash receipts and cash disbursements $12,000 higher than actual, and federal share of expenditures $24,417 higher than actual. Cause – RLHT had not properly reconciled cash receipts and disbursements, and expenditures under the cash method as the reports were filed under. Effect – Inaccurate reports were submitted to the U.S. Department of Interior, which could lead to findings and corrective action with the U.S. Department of Interior. Questioned Costs – None Recommendations – RLHT should consider improving tracking of receipts and disbursements under federal awards and consider a review process for all financial reports submitted on those federal awards. Views of Responsible Officials and Planned Corrective Actions – RLHT will seek outside accounting knowledge and experience to help provide oversight and seek guidance from the U.S. Department of Interior when deemed necessary.

2023-005 Noncompliance with Uniform Guidance Written Procedures Over Federal Grants (Significant Deficiency – Noncompliance) Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.302 requires all non-federal entities receiving federal awards to develop written procedures to implement the requirements to received federal payments and determine the allowability of costs. Condition and Context – Audit procedures revealed that there was a written financial procedures document, but that it contained no language regarding managing and complying with federal award requirements. Cause – Lack of understanding relating to the requirements of federal awards under the Uniform Guidance. Effect – Lack of documented controls over RLHT’s compliance with the Uniform Guidance creates an added risk of noncompliance occurring. Questioned Costs – None Recommendations – RLHT should become familiar with the Uniform Guidance and seek additional training for those staff involved in all phases of receiving payment on and expending of federal awards. Views of Responsible Officials and Planned Corrective Actions – RLHT will add procedures to the current financial policies document that contain oversight over the receipt and use of federal award funds.

2023-004 Reporting Errors in Non-Major Agreements (Other Noncompliance) Criteria – Management is responsible for completing accurate reports for submission to the U.S. Department of the Interior. Condition and Context – Through our audit of the Schedule of Expenditures of Federal Awards (SEFA), we noted errors in reports submitted to the U.S. Department of the Interior for a significant award that is not considered a “major” program. The Federal Financial Report for award #F22AC02260 under 15.630 Coastal Program showed cash receipts and cash disbursements $12,000 higher than actual, and federal share of expenditures $24,417 higher than actual. Cause – RLHT had not properly reconciled cash receipts and disbursements, and expenditures under the cash method as the reports were filed under. Effect – Inaccurate reports were submitted to the U.S. Department of Interior, which could lead to findings and corrective action with the U.S. Department of Interior. Questioned Costs – None Recommendations – RLHT should consider improving tracking of receipts and disbursements under federal awards and consider a review process for all financial reports submitted on those federal awards. Views of Responsible Officials and Planned Corrective Actions – RLHT will seek outside accounting knowledge and experience to help provide oversight and seek guidance from the U.S. Department of Interior when deemed necessary.

2023-005 Noncompliance with Uniform Guidance Written Procedures Over Federal Grants (Significant Deficiency – Noncompliance) Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.302 requires all non-federal entities receiving federal awards to develop written procedures to implement the requirements to received federal payments and determine the allowability of costs. Condition and Context – Audit procedures revealed that there was a written financial procedures document, but that it contained no language regarding managing and complying with federal award requirements. Cause – Lack of understanding relating to the requirements of federal awards under the Uniform Guidance. Effect – Lack of documented controls over RLHT’s compliance with the Uniform Guidance creates an added risk of noncompliance occurring. Questioned Costs – None Recommendations – RLHT should become familiar with the Uniform Guidance and seek additional training for those staff involved in all phases of receiving payment on and expending of federal awards. Views of Responsible Officials and Planned Corrective Actions – RLHT will add procedures to the current financial policies document that contain oversight over the receipt and use of federal award funds.