Finding 2022-005 Late Reporting and Noncompliance with Reporting Requirements
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: In accordance with 2 CFR part 200, subpart F, section 200.512, the reporting package must be submitted the earlier of nine (9) months after year end or 30 days after the report issuance.
Condition and context: The Village did not adhere to the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after the receipt of the audit report, or the nine (9) months after the end of the audit period.
Cause: Due to COVID-19 restrictions and high amounts of employee turnover, the Village was not able to complete the audit before the Uniform Guidance deadline.
Effect: The Village was not in compliance with reporting requirements.
Questioned Costs: None noted.
Repeat finding: This is a repeat of Finding 2021-004, and since it is a repeat finding we believe this to be a systemic issue.
Recommendation: We recommend the Village adhere to Uniform Guidance reporting requirements.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-006 Late Reporting and Noncompliance with Reporting Requirements
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Program requirements state that Federal Financial Reports be submitted within 30 days after the end of each quarter. Program requirements of the IHBG also state that Annual Performance Reports be submitted within 90 days of the end the recipients program year.
Condition and context: The Village did not adhere to the quarterly or annual reporting requirements for these programs. During the course of the audit, the Village was not able to provide us with documentation that these reports were submitted by their respective deadlines.
Cause: Lack of internal controls over grant and program reporting.
Effect: Failure to follow compliance requirements could result in loss of Federal funding.
Questioned Costs: None noted.
Repeat finding: This is a repeat of Finding 2021-005, and since it is a repeat finding we believe this to be a systemic issue.
Recommendation: We recommend the Village adhere to quarterly and annual reporting requirements specified in the grant agreement.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-007 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Adequate internal controls procedures require that all cash disbursements be reviewed and approved to ensure accuracy. Additionally, each cash disbursement should be accompanied by supporting documentation to substantiate the disbursement.
Condition and context: During our testing of cash disbursements charged to the Indian Housing Block Grant program, we noted that out of a sample of fifteen (15) transactions reviewed, one (1) lacked supporting documentation and documentation of adequate approval. During our testing of cash disbursements charged to the Aid to Tribal Governments program, we noted that out of a sample of six (6) transactions reviewed, two (2) lacked supporting documentation and documentation of adequate approval.
Cause: Lack of internal control and proper retention of support for cash disbursements
Effect: Lack of internal controls may foster an environment allowing for the potential for misstatement of the financial statements, as well as increase the risk of misappropriation of assets within the organization.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold.
Repeat finding: No, this is not a repeat finding. However, even though it is not a repeat finding, we believe it is a systemic issue due to the number of errors noted.
Recommendation: We recommend the Village adhere to their internal control policies to ensure all cash disbursements are accompanied by properly approved, supporting documentation. Expenditures should be reviewed by an authorized individual who does not request the cash disbursements to ensure each transaction is allowable and properly recorded in the general ledger.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-008 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Internal control procedures should be in place to ensure that the payroll accounting system is maintained to be able to accurately record payroll transactions. Payroll transactions should be supported by approved timesheets, and documentation of pay rates, coding, and deductions should be included in the personnel files.
Condition and context: During our testing of payroll transactions charged to the Indian Housing Block Grant program, we noted that out of a sample of twelve (12) payroll transactions reviewed, we noted five (5) employees were missing documentation of an approved pay rate in their personnel file. During our testing of payroll transactions charged to the Aid to Tribal Governments program, we noted that out of sample of twenty-five (25) transactions reviewed, fifteen (15) lacked documentation of an approved pay rate in their personnel file or documentation verifying which funding source the payroll expense should be coded to.
Cause: Lack of internal control over payroll transactions.
Effect: The lack of internal controls over payroll transactions creates the potential for misstatement of expenditures due to employees being paid incorrectly or having paychecks coded to the incorrect fund.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold.
Repeat finding: No, this is not a repeat finding. However, even though it is not a repeat finding, we believe it is a systemic issue due to the number of errors noted.
Recommendation: We recommend the Village adhere to their internal control policies to ensure that personnel action forms (PAF) are on hand for all employees. PAF’s should document the employee’s approved pay rate, fund(s) in which the employee should be coded to, and any other pertinent information related to the employee.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-005 Late Reporting and Noncompliance with Reporting Requirements
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: In accordance with 2 CFR part 200, subpart F, section 200.512, the reporting package must be submitted the earlier of nine (9) months after year end or 30 days after the report issuance.
Condition and context: The Village did not adhere to the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after the receipt of the audit report, or the nine (9) months after the end of the audit period.
Cause: Due to COVID-19 restrictions and high amounts of employee turnover, the Village was not able to complete the audit before the Uniform Guidance deadline.
Effect: The Village was not in compliance with reporting requirements.
Questioned Costs: None noted.
Repeat finding: This is a repeat of Finding 2021-004, and since it is a repeat finding we believe this to be a systemic issue.
Recommendation: We recommend the Village adhere to Uniform Guidance reporting requirements.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-006 Late Reporting and Noncompliance with Reporting Requirements
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Program requirements state that Federal Financial Reports be submitted within 30 days after the end of each quarter. Program requirements of the IHBG also state that Annual Performance Reports be submitted within 90 days of the end the recipients program year.
Condition and context: The Village did not adhere to the quarterly or annual reporting requirements for these programs. During the course of the audit, the Village was not able to provide us with documentation that these reports were submitted by their respective deadlines.
Cause: Lack of internal controls over grant and program reporting.
Effect: Failure to follow compliance requirements could result in loss of Federal funding.
Questioned Costs: None noted.
Repeat finding: This is a repeat of Finding 2021-005, and since it is a repeat finding we believe this to be a systemic issue.
Recommendation: We recommend the Village adhere to quarterly and annual reporting requirements specified in the grant agreement.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-007 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Adequate internal controls procedures require that all cash disbursements be reviewed and approved to ensure accuracy. Additionally, each cash disbursement should be accompanied by supporting documentation to substantiate the disbursement.
Condition and context: During our testing of cash disbursements charged to the Indian Housing Block Grant program, we noted that out of a sample of fifteen (15) transactions reviewed, one (1) lacked supporting documentation and documentation of adequate approval. During our testing of cash disbursements charged to the Aid to Tribal Governments program, we noted that out of a sample of six (6) transactions reviewed, two (2) lacked supporting documentation and documentation of adequate approval.
Cause: Lack of internal control and proper retention of support for cash disbursements
Effect: Lack of internal controls may foster an environment allowing for the potential for misstatement of the financial statements, as well as increase the risk of misappropriation of assets within the organization.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold.
Repeat finding: No, this is not a repeat finding. However, even though it is not a repeat finding, we believe it is a systemic issue due to the number of errors noted.
Recommendation: We recommend the Village adhere to their internal control policies to ensure all cash disbursements are accompanied by properly approved, supporting documentation. Expenditures should be reviewed by an authorized individual who does not request the cash disbursements to ensure each transaction is allowable and properly recorded in the general ledger.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-008 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Internal control procedures should be in place to ensure that the payroll accounting system is maintained to be able to accurately record payroll transactions. Payroll transactions should be supported by approved timesheets, and documentation of pay rates, coding, and deductions should be included in the personnel files.
Condition and context: During our testing of payroll transactions charged to the Indian Housing Block Grant program, we noted that out of a sample of twelve (12) payroll transactions reviewed, we noted five (5) employees were missing documentation of an approved pay rate in their personnel file. During our testing of payroll transactions charged to the Aid to Tribal Governments program, we noted that out of sample of twenty-five (25) transactions reviewed, fifteen (15) lacked documentation of an approved pay rate in their personnel file or documentation verifying which funding source the payroll expense should be coded to.
Cause: Lack of internal control over payroll transactions.
Effect: The lack of internal controls over payroll transactions creates the potential for misstatement of expenditures due to employees being paid incorrectly or having paychecks coded to the incorrect fund.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold.
Repeat finding: No, this is not a repeat finding. However, even though it is not a repeat finding, we believe it is a systemic issue due to the number of errors noted.
Recommendation: We recommend the Village adhere to their internal control policies to ensure that personnel action forms (PAF) are on hand for all employees. PAF’s should document the employee’s approved pay rate, fund(s) in which the employee should be coded to, and any other pertinent information related to the employee.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-009 Lack of Internal Control over Eligibility
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program: Indian Housing Block Grant
ALN: 14.867
Award Numbers: 55IT0212790 and 21AH0212790
Award Year: 2021 and 2022
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Internal control procedures should be in place to ensure proper documentation is recorded and kept on-file and that only qualified recipients are selected to receive program services.
Condition and context: We were not able to perform eligibility testing due to the Village’s inability to provide us with any documentation showing eligibility determination for individuals that received program services during the year.
Cause: Lack of internal control over eligibility.
Effect: The lack of internal controls over eligibility testing creates the potential for misstatement of expenditures due the Village providing program services to potentially ineligible individuals.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold; however, we were unable to determine if any ineligible individuals received program support.
Repeat finding: No, this is not a repeat finding.
Recommendation: We recommend the Village adhere to eligibility requirements specified in the grant agreement and entity’s financial assistance policies.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-005 Late Reporting and Noncompliance with Reporting Requirements
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: In accordance with 2 CFR part 200, subpart F, section 200.512, the reporting package must be submitted the earlier of nine (9) months after year end or 30 days after the report issuance.
Condition and context: The Village did not adhere to the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after the receipt of the audit report, or the nine (9) months after the end of the audit period.
Cause: Due to COVID-19 restrictions and high amounts of employee turnover, the Village was not able to complete the audit before the Uniform Guidance deadline.
Effect: The Village was not in compliance with reporting requirements.
Questioned Costs: None noted.
Repeat finding: This is a repeat of Finding 2021-004, and since it is a repeat finding we believe this to be a systemic issue.
Recommendation: We recommend the Village adhere to Uniform Guidance reporting requirements.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-006 Late Reporting and Noncompliance with Reporting Requirements
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Program requirements state that Federal Financial Reports be submitted within 30 days after the end of each quarter. Program requirements of the IHBG also state that Annual Performance Reports be submitted within 90 days of the end the recipients program year.
Condition and context: The Village did not adhere to the quarterly or annual reporting requirements for these programs. During the course of the audit, the Village was not able to provide us with documentation that these reports were submitted by their respective deadlines.
Cause: Lack of internal controls over grant and program reporting.
Effect: Failure to follow compliance requirements could result in loss of Federal funding.
Questioned Costs: None noted.
Repeat finding: This is a repeat of Finding 2021-005, and since it is a repeat finding we believe this to be a systemic issue.
Recommendation: We recommend the Village adhere to quarterly and annual reporting requirements specified in the grant agreement.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-007 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Adequate internal controls procedures require that all cash disbursements be reviewed and approved to ensure accuracy. Additionally, each cash disbursement should be accompanied by supporting documentation to substantiate the disbursement.
Condition and context: During our testing of cash disbursements charged to the Indian Housing Block Grant program, we noted that out of a sample of fifteen (15) transactions reviewed, one (1) lacked supporting documentation and documentation of adequate approval. During our testing of cash disbursements charged to the Aid to Tribal Governments program, we noted that out of a sample of six (6) transactions reviewed, two (2) lacked supporting documentation and documentation of adequate approval.
Cause: Lack of internal control and proper retention of support for cash disbursements
Effect: Lack of internal controls may foster an environment allowing for the potential for misstatement of the financial statements, as well as increase the risk of misappropriation of assets within the organization.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold.
Repeat finding: No, this is not a repeat finding. However, even though it is not a repeat finding, we believe it is a systemic issue due to the number of errors noted.
Recommendation: We recommend the Village adhere to their internal control policies to ensure all cash disbursements are accompanied by properly approved, supporting documentation. Expenditures should be reviewed by an authorized individual who does not request the cash disbursements to ensure each transaction is allowable and properly recorded in the general ledger.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-008 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Internal control procedures should be in place to ensure that the payroll accounting system is maintained to be able to accurately record payroll transactions. Payroll transactions should be supported by approved timesheets, and documentation of pay rates, coding, and deductions should be included in the personnel files.
Condition and context: During our testing of payroll transactions charged to the Indian Housing Block Grant program, we noted that out of a sample of twelve (12) payroll transactions reviewed, we noted five (5) employees were missing documentation of an approved pay rate in their personnel file. During our testing of payroll transactions charged to the Aid to Tribal Governments program, we noted that out of sample of twenty-five (25) transactions reviewed, fifteen (15) lacked documentation of an approved pay rate in their personnel file or documentation verifying which funding source the payroll expense should be coded to.
Cause: Lack of internal control over payroll transactions.
Effect: The lack of internal controls over payroll transactions creates the potential for misstatement of expenditures due to employees being paid incorrectly or having paychecks coded to the incorrect fund.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold.
Repeat finding: No, this is not a repeat finding. However, even though it is not a repeat finding, we believe it is a systemic issue due to the number of errors noted.
Recommendation: We recommend the Village adhere to their internal control policies to ensure that personnel action forms (PAF) are on hand for all employees. PAF’s should document the employee’s approved pay rate, fund(s) in which the employee should be coded to, and any other pertinent information related to the employee.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-009 Lack of Internal Control over Eligibility
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program: Indian Housing Block Grant
ALN: 14.867
Award Numbers: 55IT0212790 and 21AH0212790
Award Year: 2021 and 2022
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Internal control procedures should be in place to ensure proper documentation is recorded and kept on-file and that only qualified recipients are selected to receive program services.
Condition and context: We were not able to perform eligibility testing due to the Village’s inability to provide us with any documentation showing eligibility determination for individuals that received program services during the year.
Cause: Lack of internal control over eligibility.
Effect: The lack of internal controls over eligibility testing creates the potential for misstatement of expenditures due the Village providing program services to potentially ineligible individuals.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold; however, we were unable to determine if any ineligible individuals received program support.
Repeat finding: No, this is not a repeat finding.
Recommendation: We recommend the Village adhere to eligibility requirements specified in the grant agreement and entity’s financial assistance policies.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-005 Late Reporting and Noncompliance with Reporting Requirements
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: In accordance with 2 CFR part 200, subpart F, section 200.512, the reporting package must be submitted the earlier of nine (9) months after year end or 30 days after the report issuance.
Condition and context: The Village did not adhere to the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after the receipt of the audit report, or the nine (9) months after the end of the audit period.
Cause: Due to COVID-19 restrictions and high amounts of employee turnover, the Village was not able to complete the audit before the Uniform Guidance deadline.
Effect: The Village was not in compliance with reporting requirements.
Questioned Costs: None noted.
Repeat finding: This is a repeat of Finding 2021-004, and since it is a repeat finding we believe this to be a systemic issue.
Recommendation: We recommend the Village adhere to Uniform Guidance reporting requirements.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-006 Late Reporting and Noncompliance with Reporting Requirements
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Program requirements state that Federal Financial Reports be submitted within 30 days after the end of each quarter. Program requirements of the IHBG also state that Annual Performance Reports be submitted within 90 days of the end the recipients program year.
Condition and context: The Village did not adhere to the quarterly or annual reporting requirements for these programs. During the course of the audit, the Village was not able to provide us with documentation that these reports were submitted by their respective deadlines.
Cause: Lack of internal controls over grant and program reporting.
Effect: Failure to follow compliance requirements could result in loss of Federal funding.
Questioned Costs: None noted.
Repeat finding: This is a repeat of Finding 2021-005, and since it is a repeat finding we believe this to be a systemic issue.
Recommendation: We recommend the Village adhere to quarterly and annual reporting requirements specified in the grant agreement.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-007 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Adequate internal controls procedures require that all cash disbursements be reviewed and approved to ensure accuracy. Additionally, each cash disbursement should be accompanied by supporting documentation to substantiate the disbursement.
Condition and context: During our testing of cash disbursements charged to the Indian Housing Block Grant program, we noted that out of a sample of fifteen (15) transactions reviewed, one (1) lacked supporting documentation and documentation of adequate approval. During our testing of cash disbursements charged to the Aid to Tribal Governments program, we noted that out of a sample of six (6) transactions reviewed, two (2) lacked supporting documentation and documentation of adequate approval.
Cause: Lack of internal control and proper retention of support for cash disbursements
Effect: Lack of internal controls may foster an environment allowing for the potential for misstatement of the financial statements, as well as increase the risk of misappropriation of assets within the organization.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold.
Repeat finding: No, this is not a repeat finding. However, even though it is not a repeat finding, we believe it is a systemic issue due to the number of errors noted.
Recommendation: We recommend the Village adhere to their internal control policies to ensure all cash disbursements are accompanied by properly approved, supporting documentation. Expenditures should be reviewed by an authorized individual who does not request the cash disbursements to ensure each transaction is allowable and properly recorded in the general ledger.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-008 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Internal control procedures should be in place to ensure that the payroll accounting system is maintained to be able to accurately record payroll transactions. Payroll transactions should be supported by approved timesheets, and documentation of pay rates, coding, and deductions should be included in the personnel files.
Condition and context: During our testing of payroll transactions charged to the Indian Housing Block Grant program, we noted that out of a sample of twelve (12) payroll transactions reviewed, we noted five (5) employees were missing documentation of an approved pay rate in their personnel file. During our testing of payroll transactions charged to the Aid to Tribal Governments program, we noted that out of sample of twenty-five (25) transactions reviewed, fifteen (15) lacked documentation of an approved pay rate in their personnel file or documentation verifying which funding source the payroll expense should be coded to.
Cause: Lack of internal control over payroll transactions.
Effect: The lack of internal controls over payroll transactions creates the potential for misstatement of expenditures due to employees being paid incorrectly or having paychecks coded to the incorrect fund.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold.
Repeat finding: No, this is not a repeat finding. However, even though it is not a repeat finding, we believe it is a systemic issue due to the number of errors noted.
Recommendation: We recommend the Village adhere to their internal control policies to ensure that personnel action forms (PAF) are on hand for all employees. PAF’s should document the employee’s approved pay rate, fund(s) in which the employee should be coded to, and any other pertinent information related to the employee.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-005 Late Reporting and Noncompliance with Reporting Requirements
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: In accordance with 2 CFR part 200, subpart F, section 200.512, the reporting package must be submitted the earlier of nine (9) months after year end or 30 days after the report issuance.
Condition and context: The Village did not adhere to the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after the receipt of the audit report, or the nine (9) months after the end of the audit period.
Cause: Due to COVID-19 restrictions and high amounts of employee turnover, the Village was not able to complete the audit before the Uniform Guidance deadline.
Effect: The Village was not in compliance with reporting requirements.
Questioned Costs: None noted.
Repeat finding: This is a repeat of Finding 2021-004, and since it is a repeat finding we believe this to be a systemic issue.
Recommendation: We recommend the Village adhere to Uniform Guidance reporting requirements.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-006 Late Reporting and Noncompliance with Reporting Requirements
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Program requirements state that Federal Financial Reports be submitted within 30 days after the end of each quarter. Program requirements of the IHBG also state that Annual Performance Reports be submitted within 90 days of the end the recipients program year.
Condition and context: The Village did not adhere to the quarterly or annual reporting requirements for these programs. During the course of the audit, the Village was not able to provide us with documentation that these reports were submitted by their respective deadlines.
Cause: Lack of internal controls over grant and program reporting.
Effect: Failure to follow compliance requirements could result in loss of Federal funding.
Questioned Costs: None noted.
Repeat finding: This is a repeat of Finding 2021-005, and since it is a repeat finding we believe this to be a systemic issue.
Recommendation: We recommend the Village adhere to quarterly and annual reporting requirements specified in the grant agreement.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-007 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Adequate internal controls procedures require that all cash disbursements be reviewed and approved to ensure accuracy. Additionally, each cash disbursement should be accompanied by supporting documentation to substantiate the disbursement.
Condition and context: During our testing of cash disbursements charged to the Indian Housing Block Grant program, we noted that out of a sample of fifteen (15) transactions reviewed, one (1) lacked supporting documentation and documentation of adequate approval. During our testing of cash disbursements charged to the Aid to Tribal Governments program, we noted that out of a sample of six (6) transactions reviewed, two (2) lacked supporting documentation and documentation of adequate approval.
Cause: Lack of internal control and proper retention of support for cash disbursements
Effect: Lack of internal controls may foster an environment allowing for the potential for misstatement of the financial statements, as well as increase the risk of misappropriation of assets within the organization.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold.
Repeat finding: No, this is not a repeat finding. However, even though it is not a repeat finding, we believe it is a systemic issue due to the number of errors noted.
Recommendation: We recommend the Village adhere to their internal control policies to ensure all cash disbursements are accompanied by properly approved, supporting documentation. Expenditures should be reviewed by an authorized individual who does not request the cash disbursements to ensure each transaction is allowable and properly recorded in the general ledger.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-008 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Internal control procedures should be in place to ensure that the payroll accounting system is maintained to be able to accurately record payroll transactions. Payroll transactions should be supported by approved timesheets, and documentation of pay rates, coding, and deductions should be included in the personnel files.
Condition and context: During our testing of payroll transactions charged to the Indian Housing Block Grant program, we noted that out of a sample of twelve (12) payroll transactions reviewed, we noted five (5) employees were missing documentation of an approved pay rate in their personnel file. During our testing of payroll transactions charged to the Aid to Tribal Governments program, we noted that out of sample of twenty-five (25) transactions reviewed, fifteen (15) lacked documentation of an approved pay rate in their personnel file or documentation verifying which funding source the payroll expense should be coded to.
Cause: Lack of internal control over payroll transactions.
Effect: The lack of internal controls over payroll transactions creates the potential for misstatement of expenditures due to employees being paid incorrectly or having paychecks coded to the incorrect fund.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold.
Repeat finding: No, this is not a repeat finding. However, even though it is not a repeat finding, we believe it is a systemic issue due to the number of errors noted.
Recommendation: We recommend the Village adhere to their internal control policies to ensure that personnel action forms (PAF) are on hand for all employees. PAF’s should document the employee’s approved pay rate, fund(s) in which the employee should be coded to, and any other pertinent information related to the employee.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-009 Lack of Internal Control over Eligibility
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program: Indian Housing Block Grant
ALN: 14.867
Award Numbers: 55IT0212790 and 21AH0212790
Award Year: 2021 and 2022
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Internal control procedures should be in place to ensure proper documentation is recorded and kept on-file and that only qualified recipients are selected to receive program services.
Condition and context: We were not able to perform eligibility testing due to the Village’s inability to provide us with any documentation showing eligibility determination for individuals that received program services during the year.
Cause: Lack of internal control over eligibility.
Effect: The lack of internal controls over eligibility testing creates the potential for misstatement of expenditures due the Village providing program services to potentially ineligible individuals.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold; however, we were unable to determine if any ineligible individuals received program support.
Repeat finding: No, this is not a repeat finding.
Recommendation: We recommend the Village adhere to eligibility requirements specified in the grant agreement and entity’s financial assistance policies.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-005 Late Reporting and Noncompliance with Reporting Requirements
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: In accordance with 2 CFR part 200, subpart F, section 200.512, the reporting package must be submitted the earlier of nine (9) months after year end or 30 days after the report issuance.
Condition and context: The Village did not adhere to the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after the receipt of the audit report, or the nine (9) months after the end of the audit period.
Cause: Due to COVID-19 restrictions and high amounts of employee turnover, the Village was not able to complete the audit before the Uniform Guidance deadline.
Effect: The Village was not in compliance with reporting requirements.
Questioned Costs: None noted.
Repeat finding: This is a repeat of Finding 2021-004, and since it is a repeat finding we believe this to be a systemic issue.
Recommendation: We recommend the Village adhere to Uniform Guidance reporting requirements.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-006 Late Reporting and Noncompliance with Reporting Requirements
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Program requirements state that Federal Financial Reports be submitted within 30 days after the end of each quarter. Program requirements of the IHBG also state that Annual Performance Reports be submitted within 90 days of the end the recipients program year.
Condition and context: The Village did not adhere to the quarterly or annual reporting requirements for these programs. During the course of the audit, the Village was not able to provide us with documentation that these reports were submitted by their respective deadlines.
Cause: Lack of internal controls over grant and program reporting.
Effect: Failure to follow compliance requirements could result in loss of Federal funding.
Questioned Costs: None noted.
Repeat finding: This is a repeat of Finding 2021-005, and since it is a repeat finding we believe this to be a systemic issue.
Recommendation: We recommend the Village adhere to quarterly and annual reporting requirements specified in the grant agreement.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-007 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Adequate internal controls procedures require that all cash disbursements be reviewed and approved to ensure accuracy. Additionally, each cash disbursement should be accompanied by supporting documentation to substantiate the disbursement.
Condition and context: During our testing of cash disbursements charged to the Indian Housing Block Grant program, we noted that out of a sample of fifteen (15) transactions reviewed, one (1) lacked supporting documentation and documentation of adequate approval. During our testing of cash disbursements charged to the Aid to Tribal Governments program, we noted that out of a sample of six (6) transactions reviewed, two (2) lacked supporting documentation and documentation of adequate approval.
Cause: Lack of internal control and proper retention of support for cash disbursements
Effect: Lack of internal controls may foster an environment allowing for the potential for misstatement of the financial statements, as well as increase the risk of misappropriation of assets within the organization.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold.
Repeat finding: No, this is not a repeat finding. However, even though it is not a repeat finding, we believe it is a systemic issue due to the number of errors noted.
Recommendation: We recommend the Village adhere to their internal control policies to ensure all cash disbursements are accompanied by properly approved, supporting documentation. Expenditures should be reviewed by an authorized individual who does not request the cash disbursements to ensure each transaction is allowable and properly recorded in the general ledger.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-008 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Federal Agency: U.S. Department of Housing and Urban Development and U.S. Department of the Interior
Federal Program: Indian Housing Block Grant (IHBG) and Aid to Tribal Governments (ATG), respectively
ALN: 14.867 (IHBG) and 15.020 (ATG), respectively
Award Numbers: 55IT0212790 and 21AH0212790 (IHBG) and A19AV00203 (ATG), respectively
Award Year: 2021 and 2022 (IHBG) and 2019 (ATG), respectively
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Internal control procedures should be in place to ensure that the payroll accounting system is maintained to be able to accurately record payroll transactions. Payroll transactions should be supported by approved timesheets, and documentation of pay rates, coding, and deductions should be included in the personnel files.
Condition and context: During our testing of payroll transactions charged to the Indian Housing Block Grant program, we noted that out of a sample of twelve (12) payroll transactions reviewed, we noted five (5) employees were missing documentation of an approved pay rate in their personnel file. During our testing of payroll transactions charged to the Aid to Tribal Governments program, we noted that out of sample of twenty-five (25) transactions reviewed, fifteen (15) lacked documentation of an approved pay rate in their personnel file or documentation verifying which funding source the payroll expense should be coded to.
Cause: Lack of internal control over payroll transactions.
Effect: The lack of internal controls over payroll transactions creates the potential for misstatement of expenditures due to employees being paid incorrectly or having paychecks coded to the incorrect fund.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold.
Repeat finding: No, this is not a repeat finding. However, even though it is not a repeat finding, we believe it is a systemic issue due to the number of errors noted.
Recommendation: We recommend the Village adhere to their internal control policies to ensure that personnel action forms (PAF) are on hand for all employees. PAF’s should document the employee’s approved pay rate, fund(s) in which the employee should be coded to, and any other pertinent information related to the employee.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Finding 2022-009 Lack of Internal Control over Eligibility
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program: Indian Housing Block Grant
ALN: 14.867
Award Numbers: 55IT0212790 and 21AH0212790
Award Year: 2021 and 2022
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Internal control procedures should be in place to ensure proper documentation is recorded and kept on-file and that only qualified recipients are selected to receive program services.
Condition and context: We were not able to perform eligibility testing due to the Village’s inability to provide us with any documentation showing eligibility determination for individuals that received program services during the year.
Cause: Lack of internal control over eligibility.
Effect: The lack of internal controls over eligibility testing creates the potential for misstatement of expenditures due the Village providing program services to potentially ineligible individuals.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold; however, we were unable to determine if any ineligible individuals received program support.
Repeat finding: No, this is not a repeat finding.
Recommendation: We recommend the Village adhere to eligibility requirements specified in the grant agreement and entity’s financial assistance policies.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.