Audit 344389

FY End
2024-06-30
Total Expended
$1.45M
Findings
12
Programs
8
Organization: Indigenous Peoples Task Force (MN)
Year: 2024 Accepted: 2025-02-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
525147 2024-001 Significant Deficiency Yes L
525148 2024-001 Significant Deficiency Yes L
525149 2024-002 Significant Deficiency Yes B
525150 2024-002 Significant Deficiency Yes B
525151 2024-002 Significant Deficiency Yes B
525152 2024-002 Significant Deficiency Yes B
1101589 2024-001 Significant Deficiency Yes L
1101590 2024-001 Significant Deficiency Yes L
1101591 2024-002 Significant Deficiency Yes B
1101592 2024-002 Significant Deficiency Yes B
1101593 2024-002 Significant Deficiency Yes B
1101594 2024-002 Significant Deficiency Yes B

Contacts

Name Title Type
UC4LQ8FNLQJ8 Sharon M. Day Auditee
6513258077 Elizabeth F. Barchenger Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: 1) Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 2) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: IPTF has elected not to use the 10 percent de minimis cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Indigenous Peoples Task Force (IPTF) under programs of the federal government for the year ended June 30, 2024. 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 (the Uniform Guidance). Because the schedule presents only a selected portion of the operations of IPTF, it is not intended to and does not present the financial position, changes in net assets, or cash flows of IPTF.

Finding Details

2024-001: Filing of Federal Reports SF-425 and OPR Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 Compliance and Internal Controls Significant Deficiency Category of Finding – Reporting Criteria – IPTF is required to submit Federal Financial Reports (SF-425) and Ongoing Progress Reports (OPR) semi-annually within 30 days of period end. Condition – The September 30, 2023 SF-425 and OPR reports were filed on November 8, 2023 and November 17, 2023, outside the 30 day filing requirement. Cause – IPTF faced turnover and transitioned responsibility of the individual submitting the SF-425 during the year. The deadline for the OPR report was overlooked. Effect – Failure to submit reports within the required period may result in IPTF’s status to be delinquent and not be able to draw down funds on the award. Recommendation – We recommend that management implement a formal process that clearly defines who is responsible for preparing and a separate individual responsible for reviewing these report, and make sure they are aware of the filing requirements to ensure that federal reports are prepared, reviewed, and submitted timely. Having two individuals responsible for this process will help mitigate the risk of missing a filing deadline due to turnover. Auditee’s comments and response – IPTF has hired and assigned an experienced individual to assist with all filing requirements within the organization in managing federal grants who will ensure the accounting records are prepared accurately and to ensure that these required reports are submitted on time. Responsible party for corrective action – Sharon Day, Executive Director Repeat finding – 2023-003
2024-001: Filing of Federal Reports SF-425 and OPR Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 Compliance and Internal Controls Significant Deficiency Category of Finding – Reporting Criteria – IPTF is required to submit Federal Financial Reports (SF-425) and Ongoing Progress Reports (OPR) semi-annually within 30 days of period end. Condition – The September 30, 2023 SF-425 and OPR reports were filed on November 8, 2023 and November 17, 2023, outside the 30 day filing requirement. Cause – IPTF faced turnover and transitioned responsibility of the individual submitting the SF-425 during the year. The deadline for the OPR report was overlooked. Effect – Failure to submit reports within the required period may result in IPTF’s status to be delinquent and not be able to draw down funds on the award. Recommendation – We recommend that management implement a formal process that clearly defines who is responsible for preparing and a separate individual responsible for reviewing these report, and make sure they are aware of the filing requirements to ensure that federal reports are prepared, reviewed, and submitted timely. Having two individuals responsible for this process will help mitigate the risk of missing a filing deadline due to turnover. Auditee’s comments and response – IPTF has hired and assigned an experienced individual to assist with all filing requirements within the organization in managing federal grants who will ensure the accounting records are prepared accurately and to ensure that these required reports are submitted on time. Responsible party for corrective action – Sharon Day, Executive Director Repeat finding – 2023-003
2024-002: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.959 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Criteria – 2 CFR § 200.430 requires that compensation for individual employees be reasonable for the services rendered, be consistently applied to both federal and non-federal activities, follows all of the Organizations written policies, and is adequately documented. Adequately documented as defined by the standard requires the charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition – During testing, we noticed multiple timecards for the Executive Director were not approved by the responsible individual so the required supervisors’ review of the timecard for accurate hours and allocations did not occur and was not documented. Cause – Controls in place did not operate as designed so hours charged to the grant were not properly reviewed for accuracy by responsible individuals. Effect – Salaries or wages may be overcharged or undercharged to grant if program allocation is not documented. If the granting agency ever questioned costs, IPTF may not be able to prove that all the funds requested for reimbursement from the agency were for activities allowed under the grant. Context – A nonstatistical sample of 28 payroll transactions were selected for testing. Timecard approval was performed by an unauthorized individual for 7 transactions. Recommendation – We recommend the management implement and enforce a review process to ensure all timecards are reviewed by the responsible individual or responsible individuals in a timely manner. Auditee’s comments and response – IPTF has hired and assigned an experienced individual within the organization who has the responsibility of reviewing and approving the Executive Director's timecard prior to processing. Responsible party for corrective action: Sharon Day, Executive Director Repeat finding – 2023-005
2024-002: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.959 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Criteria – 2 CFR § 200.430 requires that compensation for individual employees be reasonable for the services rendered, be consistently applied to both federal and non-federal activities, follows all of the Organizations written policies, and is adequately documented. Adequately documented as defined by the standard requires the charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition – During testing, we noticed multiple timecards for the Executive Director were not approved by the responsible individual so the required supervisors’ review of the timecard for accurate hours and allocations did not occur and was not documented. Cause – Controls in place did not operate as designed so hours charged to the grant were not properly reviewed for accuracy by responsible individuals. Effect – Salaries or wages may be overcharged or undercharged to grant if program allocation is not documented. If the granting agency ever questioned costs, IPTF may not be able to prove that all the funds requested for reimbursement from the agency were for activities allowed under the grant. Context – A nonstatistical sample of 28 payroll transactions were selected for testing. Timecard approval was performed by an unauthorized individual for 7 transactions. Recommendation – We recommend the management implement and enforce a review process to ensure all timecards are reviewed by the responsible individual or responsible individuals in a timely manner. Auditee’s comments and response – IPTF has hired and assigned an experienced individual within the organization who has the responsibility of reviewing and approving the Executive Director's timecard prior to processing. Responsible party for corrective action: Sharon Day, Executive Director Repeat finding – 2023-005
2024-002: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.959 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Criteria – 2 CFR § 200.430 requires that compensation for individual employees be reasonable for the services rendered, be consistently applied to both federal and non-federal activities, follows all of the Organizations written policies, and is adequately documented. Adequately documented as defined by the standard requires the charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition – During testing, we noticed multiple timecards for the Executive Director were not approved by the responsible individual so the required supervisors’ review of the timecard for accurate hours and allocations did not occur and was not documented. Cause – Controls in place did not operate as designed so hours charged to the grant were not properly reviewed for accuracy by responsible individuals. Effect – Salaries or wages may be overcharged or undercharged to grant if program allocation is not documented. If the granting agency ever questioned costs, IPTF may not be able to prove that all the funds requested for reimbursement from the agency were for activities allowed under the grant. Context – A nonstatistical sample of 28 payroll transactions were selected for testing. Timecard approval was performed by an unauthorized individual for 7 transactions. Recommendation – We recommend the management implement and enforce a review process to ensure all timecards are reviewed by the responsible individual or responsible individuals in a timely manner. Auditee’s comments and response – IPTF has hired and assigned an experienced individual within the organization who has the responsibility of reviewing and approving the Executive Director's timecard prior to processing. Responsible party for corrective action: Sharon Day, Executive Director Repeat finding – 2023-005
2024-002: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.959 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Criteria – 2 CFR § 200.430 requires that compensation for individual employees be reasonable for the services rendered, be consistently applied to both federal and non-federal activities, follows all of the Organizations written policies, and is adequately documented. Adequately documented as defined by the standard requires the charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition – During testing, we noticed multiple timecards for the Executive Director were not approved by the responsible individual so the required supervisors’ review of the timecard for accurate hours and allocations did not occur and was not documented. Cause – Controls in place did not operate as designed so hours charged to the grant were not properly reviewed for accuracy by responsible individuals. Effect – Salaries or wages may be overcharged or undercharged to grant if program allocation is not documented. If the granting agency ever questioned costs, IPTF may not be able to prove that all the funds requested for reimbursement from the agency were for activities allowed under the grant. Context – A nonstatistical sample of 28 payroll transactions were selected for testing. Timecard approval was performed by an unauthorized individual for 7 transactions. Recommendation – We recommend the management implement and enforce a review process to ensure all timecards are reviewed by the responsible individual or responsible individuals in a timely manner. Auditee’s comments and response – IPTF has hired and assigned an experienced individual within the organization who has the responsibility of reviewing and approving the Executive Director's timecard prior to processing. Responsible party for corrective action: Sharon Day, Executive Director Repeat finding – 2023-005
2024-001: Filing of Federal Reports SF-425 and OPR Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 Compliance and Internal Controls Significant Deficiency Category of Finding – Reporting Criteria – IPTF is required to submit Federal Financial Reports (SF-425) and Ongoing Progress Reports (OPR) semi-annually within 30 days of period end. Condition – The September 30, 2023 SF-425 and OPR reports were filed on November 8, 2023 and November 17, 2023, outside the 30 day filing requirement. Cause – IPTF faced turnover and transitioned responsibility of the individual submitting the SF-425 during the year. The deadline for the OPR report was overlooked. Effect – Failure to submit reports within the required period may result in IPTF’s status to be delinquent and not be able to draw down funds on the award. Recommendation – We recommend that management implement a formal process that clearly defines who is responsible for preparing and a separate individual responsible for reviewing these report, and make sure they are aware of the filing requirements to ensure that federal reports are prepared, reviewed, and submitted timely. Having two individuals responsible for this process will help mitigate the risk of missing a filing deadline due to turnover. Auditee’s comments and response – IPTF has hired and assigned an experienced individual to assist with all filing requirements within the organization in managing federal grants who will ensure the accounting records are prepared accurately and to ensure that these required reports are submitted on time. Responsible party for corrective action – Sharon Day, Executive Director Repeat finding – 2023-003
2024-001: Filing of Federal Reports SF-425 and OPR Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 Compliance and Internal Controls Significant Deficiency Category of Finding – Reporting Criteria – IPTF is required to submit Federal Financial Reports (SF-425) and Ongoing Progress Reports (OPR) semi-annually within 30 days of period end. Condition – The September 30, 2023 SF-425 and OPR reports were filed on November 8, 2023 and November 17, 2023, outside the 30 day filing requirement. Cause – IPTF faced turnover and transitioned responsibility of the individual submitting the SF-425 during the year. The deadline for the OPR report was overlooked. Effect – Failure to submit reports within the required period may result in IPTF’s status to be delinquent and not be able to draw down funds on the award. Recommendation – We recommend that management implement a formal process that clearly defines who is responsible for preparing and a separate individual responsible for reviewing these report, and make sure they are aware of the filing requirements to ensure that federal reports are prepared, reviewed, and submitted timely. Having two individuals responsible for this process will help mitigate the risk of missing a filing deadline due to turnover. Auditee’s comments and response – IPTF has hired and assigned an experienced individual to assist with all filing requirements within the organization in managing federal grants who will ensure the accounting records are prepared accurately and to ensure that these required reports are submitted on time. Responsible party for corrective action – Sharon Day, Executive Director Repeat finding – 2023-003
2024-002: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.959 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Criteria – 2 CFR § 200.430 requires that compensation for individual employees be reasonable for the services rendered, be consistently applied to both federal and non-federal activities, follows all of the Organizations written policies, and is adequately documented. Adequately documented as defined by the standard requires the charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition – During testing, we noticed multiple timecards for the Executive Director were not approved by the responsible individual so the required supervisors’ review of the timecard for accurate hours and allocations did not occur and was not documented. Cause – Controls in place did not operate as designed so hours charged to the grant were not properly reviewed for accuracy by responsible individuals. Effect – Salaries or wages may be overcharged or undercharged to grant if program allocation is not documented. If the granting agency ever questioned costs, IPTF may not be able to prove that all the funds requested for reimbursement from the agency were for activities allowed under the grant. Context – A nonstatistical sample of 28 payroll transactions were selected for testing. Timecard approval was performed by an unauthorized individual for 7 transactions. Recommendation – We recommend the management implement and enforce a review process to ensure all timecards are reviewed by the responsible individual or responsible individuals in a timely manner. Auditee’s comments and response – IPTF has hired and assigned an experienced individual within the organization who has the responsibility of reviewing and approving the Executive Director's timecard prior to processing. Responsible party for corrective action: Sharon Day, Executive Director Repeat finding – 2023-005
2024-002: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.959 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Criteria – 2 CFR § 200.430 requires that compensation for individual employees be reasonable for the services rendered, be consistently applied to both federal and non-federal activities, follows all of the Organizations written policies, and is adequately documented. Adequately documented as defined by the standard requires the charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition – During testing, we noticed multiple timecards for the Executive Director were not approved by the responsible individual so the required supervisors’ review of the timecard for accurate hours and allocations did not occur and was not documented. Cause – Controls in place did not operate as designed so hours charged to the grant were not properly reviewed for accuracy by responsible individuals. Effect – Salaries or wages may be overcharged or undercharged to grant if program allocation is not documented. If the granting agency ever questioned costs, IPTF may not be able to prove that all the funds requested for reimbursement from the agency were for activities allowed under the grant. Context – A nonstatistical sample of 28 payroll transactions were selected for testing. Timecard approval was performed by an unauthorized individual for 7 transactions. Recommendation – We recommend the management implement and enforce a review process to ensure all timecards are reviewed by the responsible individual or responsible individuals in a timely manner. Auditee’s comments and response – IPTF has hired and assigned an experienced individual within the organization who has the responsibility of reviewing and approving the Executive Director's timecard prior to processing. Responsible party for corrective action: Sharon Day, Executive Director Repeat finding – 2023-005
2024-002: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.959 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Criteria – 2 CFR § 200.430 requires that compensation for individual employees be reasonable for the services rendered, be consistently applied to both federal and non-federal activities, follows all of the Organizations written policies, and is adequately documented. Adequately documented as defined by the standard requires the charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition – During testing, we noticed multiple timecards for the Executive Director were not approved by the responsible individual so the required supervisors’ review of the timecard for accurate hours and allocations did not occur and was not documented. Cause – Controls in place did not operate as designed so hours charged to the grant were not properly reviewed for accuracy by responsible individuals. Effect – Salaries or wages may be overcharged or undercharged to grant if program allocation is not documented. If the granting agency ever questioned costs, IPTF may not be able to prove that all the funds requested for reimbursement from the agency were for activities allowed under the grant. Context – A nonstatistical sample of 28 payroll transactions were selected for testing. Timecard approval was performed by an unauthorized individual for 7 transactions. Recommendation – We recommend the management implement and enforce a review process to ensure all timecards are reviewed by the responsible individual or responsible individuals in a timely manner. Auditee’s comments and response – IPTF has hired and assigned an experienced individual within the organization who has the responsibility of reviewing and approving the Executive Director's timecard prior to processing. Responsible party for corrective action: Sharon Day, Executive Director Repeat finding – 2023-005
2024-002: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.959 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Criteria – 2 CFR § 200.430 requires that compensation for individual employees be reasonable for the services rendered, be consistently applied to both federal and non-federal activities, follows all of the Organizations written policies, and is adequately documented. Adequately documented as defined by the standard requires the charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition – During testing, we noticed multiple timecards for the Executive Director were not approved by the responsible individual so the required supervisors’ review of the timecard for accurate hours and allocations did not occur and was not documented. Cause – Controls in place did not operate as designed so hours charged to the grant were not properly reviewed for accuracy by responsible individuals. Effect – Salaries or wages may be overcharged or undercharged to grant if program allocation is not documented. If the granting agency ever questioned costs, IPTF may not be able to prove that all the funds requested for reimbursement from the agency were for activities allowed under the grant. Context – A nonstatistical sample of 28 payroll transactions were selected for testing. Timecard approval was performed by an unauthorized individual for 7 transactions. Recommendation – We recommend the management implement and enforce a review process to ensure all timecards are reviewed by the responsible individual or responsible individuals in a timely manner. Auditee’s comments and response – IPTF has hired and assigned an experienced individual within the organization who has the responsibility of reviewing and approving the Executive Director's timecard prior to processing. Responsible party for corrective action: Sharon Day, Executive Director Repeat finding – 2023-005