Information on Federal Program:
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4995-LIHEAP21-
30, 5138-LIHEAP-ARPA-30, and 5195-LIHEAP23-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #5131-LIHEAPEF22-30 and 5055-LIHEAPEF-ARPA-30)
AL# 93.568
Criteria – Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the
schedule of expenditure of federal awards (SEFA). Internal controls should be adequately
designed and implemented to allow for the accurate and timely preparation of the SEFA.
Condition – For the year ended June 30, 2024, we reconciled the auditee prepared SEFA to
underlying general ledger amounts and other records. In doing this, we noted that the
expenditures were misstated.
Cause – Internal controls are not designed to allow for the reconciliation of fund expenses to
grant awards.
Effect or Potential Effect – As the entity’s auditors, we were requested to assist in the
preparation of the SEFA and required notes.
Questioned Costs – None noted.
Context – The auditee-prepared SEFA listed expenditures for the entire grant award regardless
of the fiscal year and all expenses incurred after the grant funds were exhausted.
Repeat Finding – This is a repeat finding of 2023-003 from the prior year.
Recommendation – The entity should pull the internal fund income statements by fiscal year
and reconcile to the grant awards on a regular basis.
Information on Federal Program:
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4995-LIHEAP21-
30, 5138-LIHEAP-ARPA-30, and 5195-LIHEAP23-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #5131-LIHEAPEF22-30 and 5055-LIHEAPEF-ARPA-30)
AL# 93.568
Criteria – Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the
schedule of expenditure of federal awards (SEFA). Internal controls should be adequately
designed and implemented to allow for the accurate and timely preparation of the SEFA.
Condition – For the year ended June 30, 2024, we reconciled the auditee prepared SEFA to
underlying general ledger amounts and other records. In doing this, we noted that the
expenditures were misstated.
Cause – Internal controls are not designed to allow for the reconciliation of fund expenses to
grant awards.
Effect or Potential Effect – As the entity’s auditors, we were requested to assist in the
preparation of the SEFA and required notes.
Questioned Costs – None noted.
Context – The auditee-prepared SEFA listed expenditures for the entire grant award regardless
of the fiscal year and all expenses incurred after the grant funds were exhausted.
Repeat Finding – This is a repeat finding of 2023-003 from the prior year.
Recommendation – The entity should pull the internal fund income statements by fiscal year
and reconcile to the grant awards on a regular basis.
Information on Federal Program:
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4995-LIHEAP21-
30, 5138-LIHEAP-ARPA-30, and 5195-LIHEAP23-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #5131-LIHEAPEF22-30 and 5055-LIHEAPEF-ARPA-30)
AL# 93.568
Criteria – Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the
schedule of expenditure of federal awards (SEFA). Internal controls should be adequately
designed and implemented to allow for the accurate and timely preparation of the SEFA.
Condition – For the year ended June 30, 2024, we reconciled the auditee prepared SEFA to
underlying general ledger amounts and other records. In doing this, we noted that the
expenditures were misstated.
Cause – Internal controls are not designed to allow for the reconciliation of fund expenses to
grant awards.
Effect or Potential Effect – As the entity’s auditors, we were requested to assist in the
preparation of the SEFA and required notes.
Questioned Costs – None noted.
Context – The auditee-prepared SEFA listed expenditures for the entire grant award regardless
of the fiscal year and all expenses incurred after the grant funds were exhausted.
Repeat Finding – This is a repeat finding of 2023-003 from the prior year.
Recommendation – The entity should pull the internal fund income statements by fiscal year
and reconcile to the grant awards on a regular basis.
Information on Federal Programs
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4995-LIHEAP21-
30, 5138-LIHEAP-ARPA-30, and 5195-LIHEAP23-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #5131-LIHEAPEF22-30 and 5055-LIHEAPEF-ARPA-30)
AL# 93.568
Criteria – Section 2 CFR sections 200.303 requires that the auditee establish and maintain
internal control over federal awards to provide reasonable assurance that the auditee is
managing the federal awards in compliance with federal statutes, regulations, and the terms and
conditions of federal awards.
Condition – For the year ended June 30, 2024, we requested supporting documentation to test
the review and approval of a sample of costs charged to the LIHEAP grant. In a sample of 60
expenditures, we noted one instance where a journal entry which allocated expenses to the
grant was not approved.
Cause – Internal controls were updated mid-year to require the review of all journal entries
charged to and reimbursed under federal grants.
Effect or Potential Effect – Federal expenditures may not be in accordance with the allowable
cost/cost principles standards under Uniform Guidance.
Questioned Costs – Undeterminable
Context – The expenditure selected for testing was a journal entry allocated costs but occurred
prior to the change in the internal control requiring review of all journal entries.
Repeat Finding – This is a new finding.
Recommendation – The auditee should review all journal entries that were charged to federal
grants and approve retroactively and document in a memo. Any errors noted should be
correcting with the appropriate granting agencies.
Information on Federal Programs
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4995-LIHEAP21-
30, 5138-LIHEAP-ARPA-30, and 5195-LIHEAP23-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #5131-LIHEAPEF22-30 and 5055-LIHEAPEF-ARPA-30)
AL# 93.568
Criteria – Section 2 CFR sections 200.303 requires that the auditee establish and maintain
internal control over federal awards to provide reasonable assurance that the auditee is
managing the federal awards in compliance with federal statutes, regulations, and the terms and
conditions of federal awards.
Condition – For the year ended June 30, 2024, we requested supporting documentation to test
the review and approval of a sample of costs charged to the LIHEAP grant. In a sample of 60
expenditures, we noted one instance where a journal entry which allocated expenses to the
grant was not approved.
Cause – Internal controls were updated mid-year to require the review of all journal entries
charged to and reimbursed under federal grants.
Effect or Potential Effect – Federal expenditures may not be in accordance with the allowable
cost/cost principles standards under Uniform Guidance.
Questioned Costs – Undeterminable
Context – The expenditure selected for testing was a journal entry allocated costs but occurred
prior to the change in the internal control requiring review of all journal entries.
Repeat Finding – This is a new finding.
Recommendation – The auditee should review all journal entries that were charged to federal
grants and approve retroactively and document in a memo. Any errors noted should be
correcting with the appropriate granting agencies.
Information on Federal Programs
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4995-LIHEAP21-
30, 5138-LIHEAP-ARPA-30, and 5195-LIHEAP23-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #5131-LIHEAPEF22-30 and 5055-LIHEAPEF-ARPA-30)
AL# 93.568
Criteria – Section 2 CFR sections 200.303 requires that the auditee establish and maintain
internal control over federal awards to provide reasonable assurance that the auditee is
managing the federal awards in compliance with federal statutes, regulations, and the terms and
conditions of federal awards.
Condition – For the year ended June 30, 2024, we requested supporting documentation to test
the review and approval of a sample of costs charged to the LIHEAP grant. In a sample of 60
expenditures, we noted one instance where a journal entry which allocated expenses to the
grant was not approved.
Cause – Internal controls were updated mid-year to require the review of all journal entries
charged to and reimbursed under federal grants.
Effect or Potential Effect – Federal expenditures may not be in accordance with the allowable
cost/cost principles standards under Uniform Guidance.
Questioned Costs – Undeterminable
Context – The expenditure selected for testing was a journal entry allocated costs but occurred
prior to the change in the internal control requiring review of all journal entries.
Repeat Finding – This is a new finding.
Recommendation – The auditee should review all journal entries that were charged to federal
grants and approve retroactively and document in a memo. Any errors noted should be
correcting with the appropriate granting agencies.
Information on Federal Program:
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4995-LIHEAP21-
30, 5138-LIHEAP-ARPA-30, and 5195-LIHEAP23-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #5131-LIHEAPEF22-30 and 5055-LIHEAPEF-ARPA-30)
AL# 93.568
Criteria – Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the
schedule of expenditure of federal awards (SEFA). Internal controls should be adequately
designed and implemented to allow for the accurate and timely preparation of the SEFA.
Condition – For the year ended June 30, 2024, we reconciled the auditee prepared SEFA to
underlying general ledger amounts and other records. In doing this, we noted that the
expenditures were misstated.
Cause – Internal controls are not designed to allow for the reconciliation of fund expenses to
grant awards.
Effect or Potential Effect – As the entity’s auditors, we were requested to assist in the
preparation of the SEFA and required notes.
Questioned Costs – None noted.
Context – The auditee-prepared SEFA listed expenditures for the entire grant award regardless
of the fiscal year and all expenses incurred after the grant funds were exhausted.
Repeat Finding – This is a repeat finding of 2023-003 from the prior year.
Recommendation – The entity should pull the internal fund income statements by fiscal year
and reconcile to the grant awards on a regular basis.
Information on Federal Program:
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4995-LIHEAP21-
30, 5138-LIHEAP-ARPA-30, and 5195-LIHEAP23-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #5131-LIHEAPEF22-30 and 5055-LIHEAPEF-ARPA-30)
AL# 93.568
Criteria – Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the
schedule of expenditure of federal awards (SEFA). Internal controls should be adequately
designed and implemented to allow for the accurate and timely preparation of the SEFA.
Condition – For the year ended June 30, 2024, we reconciled the auditee prepared SEFA to
underlying general ledger amounts and other records. In doing this, we noted that the
expenditures were misstated.
Cause – Internal controls are not designed to allow for the reconciliation of fund expenses to
grant awards.
Effect or Potential Effect – As the entity’s auditors, we were requested to assist in the
preparation of the SEFA and required notes.
Questioned Costs – None noted.
Context – The auditee-prepared SEFA listed expenditures for the entire grant award regardless
of the fiscal year and all expenses incurred after the grant funds were exhausted.
Repeat Finding – This is a repeat finding of 2023-003 from the prior year.
Recommendation – The entity should pull the internal fund income statements by fiscal year
and reconcile to the grant awards on a regular basis.
Information on Federal Program:
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4995-LIHEAP21-
30, 5138-LIHEAP-ARPA-30, and 5195-LIHEAP23-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #5131-LIHEAPEF22-30 and 5055-LIHEAPEF-ARPA-30)
AL# 93.568
Criteria – Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the
schedule of expenditure of federal awards (SEFA). Internal controls should be adequately
designed and implemented to allow for the accurate and timely preparation of the SEFA.
Condition – For the year ended June 30, 2024, we reconciled the auditee prepared SEFA to
underlying general ledger amounts and other records. In doing this, we noted that the
expenditures were misstated.
Cause – Internal controls are not designed to allow for the reconciliation of fund expenses to
grant awards.
Effect or Potential Effect – As the entity’s auditors, we were requested to assist in the
preparation of the SEFA and required notes.
Questioned Costs – None noted.
Context – The auditee-prepared SEFA listed expenditures for the entire grant award regardless
of the fiscal year and all expenses incurred after the grant funds were exhausted.
Repeat Finding – This is a repeat finding of 2023-003 from the prior year.
Recommendation – The entity should pull the internal fund income statements by fiscal year
and reconcile to the grant awards on a regular basis.
Information on Federal Programs
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4995-LIHEAP21-
30, 5138-LIHEAP-ARPA-30, and 5195-LIHEAP23-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #5131-LIHEAPEF22-30 and 5055-LIHEAPEF-ARPA-30)
AL# 93.568
Criteria – Section 2 CFR sections 200.303 requires that the auditee establish and maintain
internal control over federal awards to provide reasonable assurance that the auditee is
managing the federal awards in compliance with federal statutes, regulations, and the terms and
conditions of federal awards.
Condition – For the year ended June 30, 2024, we requested supporting documentation to test
the review and approval of a sample of costs charged to the LIHEAP grant. In a sample of 60
expenditures, we noted one instance where a journal entry which allocated expenses to the
grant was not approved.
Cause – Internal controls were updated mid-year to require the review of all journal entries
charged to and reimbursed under federal grants.
Effect or Potential Effect – Federal expenditures may not be in accordance with the allowable
cost/cost principles standards under Uniform Guidance.
Questioned Costs – Undeterminable
Context – The expenditure selected for testing was a journal entry allocated costs but occurred
prior to the change in the internal control requiring review of all journal entries.
Repeat Finding – This is a new finding.
Recommendation – The auditee should review all journal entries that were charged to federal
grants and approve retroactively and document in a memo. Any errors noted should be
correcting with the appropriate granting agencies.
Information on Federal Programs
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4995-LIHEAP21-
30, 5138-LIHEAP-ARPA-30, and 5195-LIHEAP23-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #5131-LIHEAPEF22-30 and 5055-LIHEAPEF-ARPA-30)
AL# 93.568
Criteria – Section 2 CFR sections 200.303 requires that the auditee establish and maintain
internal control over federal awards to provide reasonable assurance that the auditee is
managing the federal awards in compliance with federal statutes, regulations, and the terms and
conditions of federal awards.
Condition – For the year ended June 30, 2024, we requested supporting documentation to test
the review and approval of a sample of costs charged to the LIHEAP grant. In a sample of 60
expenditures, we noted one instance where a journal entry which allocated expenses to the
grant was not approved.
Cause – Internal controls were updated mid-year to require the review of all journal entries
charged to and reimbursed under federal grants.
Effect or Potential Effect – Federal expenditures may not be in accordance with the allowable
cost/cost principles standards under Uniform Guidance.
Questioned Costs – Undeterminable
Context – The expenditure selected for testing was a journal entry allocated costs but occurred
prior to the change in the internal control requiring review of all journal entries.
Repeat Finding – This is a new finding.
Recommendation – The auditee should review all journal entries that were charged to federal
grants and approve retroactively and document in a memo. Any errors noted should be
correcting with the appropriate granting agencies.
Information on Federal Programs
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4995-LIHEAP21-
30, 5138-LIHEAP-ARPA-30, and 5195-LIHEAP23-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #5131-LIHEAPEF22-30 and 5055-LIHEAPEF-ARPA-30)
AL# 93.568
Criteria – Section 2 CFR sections 200.303 requires that the auditee establish and maintain
internal control over federal awards to provide reasonable assurance that the auditee is
managing the federal awards in compliance with federal statutes, regulations, and the terms and
conditions of federal awards.
Condition – For the year ended June 30, 2024, we requested supporting documentation to test
the review and approval of a sample of costs charged to the LIHEAP grant. In a sample of 60
expenditures, we noted one instance where a journal entry which allocated expenses to the
grant was not approved.
Cause – Internal controls were updated mid-year to require the review of all journal entries
charged to and reimbursed under federal grants.
Effect or Potential Effect – Federal expenditures may not be in accordance with the allowable
cost/cost principles standards under Uniform Guidance.
Questioned Costs – Undeterminable
Context – The expenditure selected for testing was a journal entry allocated costs but occurred
prior to the change in the internal control requiring review of all journal entries.
Repeat Finding – This is a new finding.
Recommendation – The auditee should review all journal entries that were charged to federal
grants and approve retroactively and document in a memo. Any errors noted should be
correcting with the appropriate granting agencies.