Audit 34680

FY End
2022-12-31
Total Expended
$16.35M
Findings
16
Programs
40
Organization: Narragansett Indian Tribe (RI)
Year: 2022 Accepted: 2023-09-29
Auditor: Wipfli LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
38601 2022-004 Material Weakness Yes AB
38602 2022-004 Material Weakness Yes AB
38603 2022-005 Material Weakness - B
38604 2022-004 Material Weakness - AB
38605 2022-006 Significant Deficiency - G
38606 2022-004 Material Weakness - AB
38607 2022-006 Significant Deficiency - G
38608 2022-004 Significant Deficiency - AB
615043 2022-004 Material Weakness Yes AB
615044 2022-004 Material Weakness Yes AB
615045 2022-005 Material Weakness - B
615046 2022-004 Material Weakness - AB
615047 2022-006 Significant Deficiency - G
615048 2022-004 Material Weakness - AB
615049 2022-006 Significant Deficiency - G
615050 2022-004 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $7.47M Yes 2
15.020 Aid to Tribal Governments $1.14M Yes 1
15.021 Consolidated Tribal Government Program $790,393 Yes 1
14.867 Indian Housing Block Grants $499,755 - 0
15.030 Indian Law Enforcement $467,144 - 0
15.024 Indian Self-Determination Contract Support $462,399 - 0
15.033 Road Maintenance_indian Roads $387,747 - 0
21.023 Emergency Rental Assistance Program $337,437 - 0
93.441 Indian Self-Determination $315,391 - 0
15.113 Indian Social Services_welfare Assistance $207,751 - 0
21.019 Coronavirus Relief Fund $174,428 - 0
20.205 Highway Planning and Construction $149,134 - 0
93.054 National Family Caregiver Support, Title Vi, Part C, Grants to Indian Tribes and Native Hawaiians $105,250 - 0
15.035 Forestry on Indian Lands $101,076 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $91,933 Yes 2
15.144 Indian Child Welfare Act_title II Grants $89,451 - 0
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $78,559 - 0
93.568 Low-Income Home Energy Assistance $66,148 - 0
15.029 Tribal Courts $54,028 - 0
14.862 Indian Community Development Block Grant Program $37,037 - 0
30.001 Employment Discrimination_title Vii of the Civil Rights Act of 1964 $33,935 - 0
93.569 Community Services Block Grant $31,053 - 0
93.047 Special Programs for the Aging_title Vi, Part A, Grants to Indian Tribes_part B, Grants to Native Hawaiians $30,534 - 0
15.041 Environmental Management_indian Programs $25,023 - 0
93.556 Promoting Safe and Stable Families $23,763 - 0
93.201 Indian Health Services Scatter Sites and Sanitation $20,455 - 0
66.605 Performance Partnership Grants $19,150 - 0
93.575 Child Care and Development Block Grant $17,132 Yes 0
11.029 Tribal Broadband Connectivity Program $17,020 - 0
10.760 Water and Waste Disposal Systems for Rural Communities $14,966 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $9,810 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $7,516 - 0
93.236 Grants to States to Support Oral Health Workforce Activities $6,111 - 0
93.053 Nutrition Services Incentive Program $2,679 - 0
10.U01 Usda Farm Snow Apprvd Tunnel 1 $1,980 - 0
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $1,929 - 0
15.141 Indian Housing Assistance $1,604 - 0
10.U02 Elder's Church Garden $794 - 0
10.171 Organic Certification Cost Share Programs $68 - 0
93.237 Special Diabetes Program for Indians_diabetes Prevention and Treatment Projects $-1,004 - 0

Contacts

Name Title Type
UKHEKM319314 Speedi Burrell Auditee
4013641100 Lisa Desotelle Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the modified accrual basis of accounting. Expenditures generally are recorded when a liability is incurred, as under accrual 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Narragansett Indian Tribe has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of the Narragansett Indian Tribe under programs of the federal government for the year ended December 31, 2022. 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 of Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Narragansett Indian Tribe, it is not intended to anddoes not present the financial position, changes in net position, or cash flows of the Narragansett Indian Tribe.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the modified accrual basis of accounting. Expenditures generally are recorded when a liability is incurred, as under accrual 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Narragansett Indian Tribe has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Narragansett Indian Tribe had no subrecipients during the year ended December 31, 2022.

Finding Details

Internal Controls and Compliance over Allowable Cost and Allowable Activity - Expenditures Federal Program Information: Funding agency: Department of the Interior Department of Treasury Department of Health and Human Services Title: Aid to Tribal Government Consolidated Tribal Government Programs Coronavirus State and Local Fiscal Recovery Funds Child Care and Development Block Grant & Child Care Mandatory and Matching Funds of the Child Care and Development Fund - Clusters AL number: 15.020; 15,021; 21.027; 93.575 & 93.596 Award year and number: A08AV0089; SLT0380 and 21PARICDC6 & 22PARICCDF Criteria or Specific Requirement: Effective internal controls over the expenditure process should be properly designed to provide assurance of meeting compliance requirements and should operate effectively. All disbursements should have proper written authorization supported with adequate documentation. Disbursement policies and procedures require the signature of the Finance Director and Tribal Administrator or Chief Sachem for authorization. If the Finance Director is unavailable, his signing authority is delegated to Chief Sachem via a delegation of authority form, who is already a required signer. Condition: During our testing of controls over expenditures and capital asset additions, the following exceptions were noted: AL 15.020 The Tribe paid one individual a total of $2,300 for expenditures related to the public health emergency with respect to Covid-19 without adequate approval. They were missing the Finance Director approval. In addition, because of the inadequate support provided we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $19,588 were missing the Finance Director approval and the required three bids with council approval. AL 15.021 On the expenditure testing, out of thirty samples tested, ten samples totaling $10,166 had supporting documentation that was inadequate and we were unable to determine whether the expenditures were an allowable cost or allowable activity. Without any documented delegation support, we were unable to determine the delegation authority of the Finance Director for two samples totaling $3,573 of the thirty samples tested. On the capital asset additions testing, one sample of $1,981 was missing the Finance Director approval and the required three bids with council approval. AL 21.027 On the expenditure testing, out of thirty samples, nine samples totaling $22,000 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $600 for an expenditure related to the public health emergency with respect to Covid-19 without the Finance Director approval. On the capital asset additions testing, out of five samples tested, three samples totaling $14,175 were missing the Finance Director approval and one sample of $5,175 was missing the required three bids with council approval. AL 93.575 & 93.596 On the expenditure testing, out of thirty samples selected we were not provided any supporting documents for four samples totaling $4,857. In addition, four samples totaling $3,454 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. Two samples totaling $810 were missing the Finance Director approval. On the capital asset additions testing, out of four samples tested, three samples totaling $84,217 were missing the Finance Director approval and one sample of $14,568 was missing the required three bids with council approval. Follow up on 2021 AL 21.019 finding On the expenditure testing, out of the twenty five samples tested, five samples totaling $11,873 were missing supporting documentation. Six samples totaling $10,990 had supporting documentation provided that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $1,500 for expenditures related to the public health emergency with respect to Covid-19 without adequate supporting documentation. Therefore, we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $15,000 had supporting documentation that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or an allowable activity. Three samples tested totaling $28,400 were missing the Finance Director approval. Context: We inquired with management and tested two hundred and nine expenditure samples. Questioned Costs: AL 15.020 $600 and prior year follow up AL 21.019 $1,500. Effect: The lack of effective and consistent internal controls exposes the Tribe to a greater risk of fraudulent activities. Cause: Internal control procedures are not properly designed to ensure transactions are authorized prior to payments. Repeat: Yes - Years as Repeat Finding: Three 2021-004 Auditor's Recommendation: We recommend the Tribe strengthen its implementation on controls over disbursement. View of Responsible Officials: Management agrees with the audit finding and they have a plan in place to correct the finding.
Internal Controls and Compliance over Allowable Cost and Allowable Activity - Expenditures Federal Program Information: Funding agency: Department of the Interior Department of Treasury Department of Health and Human Services Title: Aid to Tribal Government Consolidated Tribal Government Programs Coronavirus State and Local Fiscal Recovery Funds Child Care and Development Block Grant & Child Care Mandatory and Matching Funds of the Child Care and Development Fund - Clusters AL number: 15.020; 15,021; 21.027; 93.575 & 93.596 Award year and number: A08AV0089; SLT0380 and 21PARICDC6 & 22PARICCDF Criteria or Specific Requirement: Effective internal controls over the expenditure process should be properly designed to provide assurance of meeting compliance requirements and should operate effectively. All disbursements should have proper written authorization supported with adequate documentation. Disbursement policies and procedures require the signature of the Finance Director and Tribal Administrator or Chief Sachem for authorization. If the Finance Director is unavailable, his signing authority is delegated to Chief Sachem via a delegation of authority form, who is already a required signer. Condition: During our testing of controls over expenditures and capital asset additions, the following exceptions were noted: AL 15.020 The Tribe paid one individual a total of $2,300 for expenditures related to the public health emergency with respect to Covid-19 without adequate approval. They were missing the Finance Director approval. In addition, because of the inadequate support provided we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $19,588 were missing the Finance Director approval and the required three bids with council approval. AL 15.021 On the expenditure testing, out of thirty samples tested, ten samples totaling $10,166 had supporting documentation that was inadequate and we were unable to determine whether the expenditures were an allowable cost or allowable activity. Without any documented delegation support, we were unable to determine the delegation authority of the Finance Director for two samples totaling $3,573 of the thirty samples tested. On the capital asset additions testing, one sample of $1,981 was missing the Finance Director approval and the required three bids with council approval. AL 21.027 On the expenditure testing, out of thirty samples, nine samples totaling $22,000 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $600 for an expenditure related to the public health emergency with respect to Covid-19 without the Finance Director approval. On the capital asset additions testing, out of five samples tested, three samples totaling $14,175 were missing the Finance Director approval and one sample of $5,175 was missing the required three bids with council approval. AL 93.575 & 93.596 On the expenditure testing, out of thirty samples selected we were not provided any supporting documents for four samples totaling $4,857. In addition, four samples totaling $3,454 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. Two samples totaling $810 were missing the Finance Director approval. On the capital asset additions testing, out of four samples tested, three samples totaling $84,217 were missing the Finance Director approval and one sample of $14,568 was missing the required three bids with council approval. Follow up on 2021 AL 21.019 finding On the expenditure testing, out of the twenty five samples tested, five samples totaling $11,873 were missing supporting documentation. Six samples totaling $10,990 had supporting documentation provided that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $1,500 for expenditures related to the public health emergency with respect to Covid-19 without adequate supporting documentation. Therefore, we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $15,000 had supporting documentation that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or an allowable activity. Three samples tested totaling $28,400 were missing the Finance Director approval. Context: We inquired with management and tested two hundred and nine expenditure samples. Questioned Costs: AL 15.020 $600 and prior year follow up AL 21.019 $1,500. Effect: The lack of effective and consistent internal controls exposes the Tribe to a greater risk of fraudulent activities. Cause: Internal control procedures are not properly designed to ensure transactions are authorized prior to payments. Repeat: Yes - Years as Repeat Finding: Three 2021-004 Auditor's Recommendation: We recommend the Tribe strengthen its implementation on controls over disbursement. View of Responsible Officials: Management agrees with the audit finding and they have a plan in place to correct the finding.
Allowable Costs - Premium/Hazard Pay Federal Program Information: Funding agency: Department of Treasury Title: Coronavirus State and Local Fiscal Recovery Funds AL number: 21.027 Award year and number: 2021 Criteria or Specific Requirement: The Coronavirus State and Local Fiscal Recovery Funds may be used to provide premium pay to eligible workers performing essential work during the Covid-19 public health emergency. The American Rescue Plan Act defines premium pay as an amount up to $13 per hour, in addition to wages or remuneration the worker otherwise receives. Premium pay is limited to an aggregate amount not to exceed $25,000 per eligible worker during the program. Condition: Twenty seven employees received more than $25,000 as of December 31, 2022. The total amount exceeded $25,000 is $161,250. Context: We reviewed seventy eight employees who were paid premium/hazard pay. Questioned Costs: $161,250. Effect: Noncompliance with requirements may result in negative impacts on funding. Cause: Management did not monitor the requirements to ensure premium/hazard pay did not exceed $25,000 per eligible worker during the program. Repeat: No Auditor's Recommendation: We recommend management monitor its premium/hazard pay to ensure the amount paid out did not exceed $25,000 per eligible worker during the program. View of Responsible Officials: Management agrees with the audit finding and they have a plan in place to correct the finding.
Internal Controls and Compliance over Allowable Cost and Allowable Activity - Expenditures Federal Program Information: Funding agency: Department of the Interior Department of Treasury Department of Health and Human Services Title: Aid to Tribal Government Consolidated Tribal Government Programs Coronavirus State and Local Fiscal Recovery Funds Child Care and Development Block Grant & Child Care Mandatory and Matching Funds of the Child Care and Development Fund - Clusters AL number: 15.020; 15,021; 21.027; 93.575 & 93.596 Award year and number: A08AV0089; SLT0380 and 21PARICDC6 & 22PARICCDF Criteria or Specific Requirement: Effective internal controls over the expenditure process should be properly designed to provide assurance of meeting compliance requirements and should operate effectively. All disbursements should have proper written authorization supported with adequate documentation. Disbursement policies and procedures require the signature of the Finance Director and Tribal Administrator or Chief Sachem for authorization. If the Finance Director is unavailable, his signing authority is delegated to Chief Sachem via a delegation of authority form, who is already a required signer. Condition: During our testing of controls over expenditures and capital asset additions, the following exceptions were noted: AL 15.020 The Tribe paid one individual a total of $2,300 for expenditures related to the public health emergency with respect to Covid-19 without adequate approval. They were missing the Finance Director approval. In addition, because of the inadequate support provided we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $19,588 were missing the Finance Director approval and the required three bids with council approval. AL 15.021 On the expenditure testing, out of thirty samples tested, ten samples totaling $10,166 had supporting documentation that was inadequate and we were unable to determine whether the expenditures were an allowable cost or allowable activity. Without any documented delegation support, we were unable to determine the delegation authority of the Finance Director for two samples totaling $3,573 of the thirty samples tested. On the capital asset additions testing, one sample of $1,981 was missing the Finance Director approval and the required three bids with council approval. AL 21.027 On the expenditure testing, out of thirty samples, nine samples totaling $22,000 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $600 for an expenditure related to the public health emergency with respect to Covid-19 without the Finance Director approval. On the capital asset additions testing, out of five samples tested, three samples totaling $14,175 were missing the Finance Director approval and one sample of $5,175 was missing the required three bids with council approval. AL 93.575 & 93.596 On the expenditure testing, out of thirty samples selected we were not provided any supporting documents for four samples totaling $4,857. In addition, four samples totaling $3,454 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. Two samples totaling $810 were missing the Finance Director approval. On the capital asset additions testing, out of four samples tested, three samples totaling $84,217 were missing the Finance Director approval and one sample of $14,568 was missing the required three bids with council approval. Follow up on 2021 AL 21.019 finding On the expenditure testing, out of the twenty five samples tested, five samples totaling $11,873 were missing supporting documentation. Six samples totaling $10,990 had supporting documentation provided that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $1,500 for expenditures related to the public health emergency with respect to Covid-19 without adequate supporting documentation. Therefore, we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $15,000 had supporting documentation that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or an allowable activity. Three samples tested totaling $28,400 were missing the Finance Director approval. Context: We inquired with management and tested two hundred and nine expenditure samples. Questioned Costs: AL 15.020 $600 and prior year follow up AL 21.019 $1,500. Effect: The lack of effective and consistent internal controls exposes the Tribe to a greater risk of fraudulent activities. Cause: Internal control procedures are not properly designed to ensure transactions are authorized prior to payments. Repeat: Yes - Years as Repeat Finding: Three 2021-004 Auditor's Recommendation: We recommend the Tribe strengthen its implementation on controls over disbursement. View of Responsible Officials: Management agrees with the audit finding and they have a plan in place to correct the finding.
Matching, Level of Effort, Earmarking Federal Program Information: Funding agency: Department of Health and Human Services Title: Child Care and Development Block Grant & Child Care Mandatory and Matching Funds of the Child Care and Development Fund - Clusters AL number: 93.575 & 93.596 Award year and number: 21PARICDC6 & 22PARICCDF Criteria or Specific Requirement: AL 93.596 award was approved for cost sharing or matching. The Tribe is allowed 15% of the amount expended under AL 93.596 for administrative costs. Condition: During our compliance testing the following exceptions were noted: AL 93.575 We were not given copies of the award in its entirety to determine what is approved for cost sharing or matching. AL 93.596 We were not given copies of the award in its entirety to determine if there is the 15% administrative costs and we were not able to determine if there is any matching. Context: We had discussions with management and examined award letters that were provided to us. Questioned Costs: None. Effect: Noncompliance with requirements may result in negative impacts on funding. Cause: Management did not properly implement matching and administrative costs requirements. Repeat: No Auditor's Recommendation: We recommend management gain a better understanding of program matching and administrative costs and follow through with implementation. View of Responsible Officials: Management agrees with the audit finding and they have a plan in place to correct the finding.
Internal Controls and Compliance over Allowable Cost and Allowable Activity - Expenditures Federal Program Information: Funding agency: Department of the Interior Department of Treasury Department of Health and Human Services Title: Aid to Tribal Government Consolidated Tribal Government Programs Coronavirus State and Local Fiscal Recovery Funds Child Care and Development Block Grant & Child Care Mandatory and Matching Funds of the Child Care and Development Fund - Clusters AL number: 15.020; 15,021; 21.027; 93.575 & 93.596 Award year and number: A08AV0089; SLT0380 and 21PARICDC6 & 22PARICCDF Criteria or Specific Requirement: Effective internal controls over the expenditure process should be properly designed to provide assurance of meeting compliance requirements and should operate effectively. All disbursements should have proper written authorization supported with adequate documentation. Disbursement policies and procedures require the signature of the Finance Director and Tribal Administrator or Chief Sachem for authorization. If the Finance Director is unavailable, his signing authority is delegated to Chief Sachem via a delegation of authority form, who is already a required signer. Condition: During our testing of controls over expenditures and capital asset additions, the following exceptions were noted: AL 15.020 The Tribe paid one individual a total of $2,300 for expenditures related to the public health emergency with respect to Covid-19 without adequate approval. They were missing the Finance Director approval. In addition, because of the inadequate support provided we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $19,588 were missing the Finance Director approval and the required three bids with council approval. AL 15.021 On the expenditure testing, out of thirty samples tested, ten samples totaling $10,166 had supporting documentation that was inadequate and we were unable to determine whether the expenditures were an allowable cost or allowable activity. Without any documented delegation support, we were unable to determine the delegation authority of the Finance Director for two samples totaling $3,573 of the thirty samples tested. On the capital asset additions testing, one sample of $1,981 was missing the Finance Director approval and the required three bids with council approval. AL 21.027 On the expenditure testing, out of thirty samples, nine samples totaling $22,000 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $600 for an expenditure related to the public health emergency with respect to Covid-19 without the Finance Director approval. On the capital asset additions testing, out of five samples tested, three samples totaling $14,175 were missing the Finance Director approval and one sample of $5,175 was missing the required three bids with council approval. AL 93.575 & 93.596 On the expenditure testing, out of thirty samples selected we were not provided any supporting documents for four samples totaling $4,857. In addition, four samples totaling $3,454 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. Two samples totaling $810 were missing the Finance Director approval. On the capital asset additions testing, out of four samples tested, three samples totaling $84,217 were missing the Finance Director approval and one sample of $14,568 was missing the required three bids with council approval. Follow up on 2021 AL 21.019 finding On the expenditure testing, out of the twenty five samples tested, five samples totaling $11,873 were missing supporting documentation. Six samples totaling $10,990 had supporting documentation provided that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $1,500 for expenditures related to the public health emergency with respect to Covid-19 without adequate supporting documentation. Therefore, we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $15,000 had supporting documentation that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or an allowable activity. Three samples tested totaling $28,400 were missing the Finance Director approval. Context: We inquired with management and tested two hundred and nine expenditure samples. Questioned Costs: AL 15.020 $600 and prior year follow up AL 21.019 $1,500. Effect: The lack of effective and consistent internal controls exposes the Tribe to a greater risk of fraudulent activities. Cause: Internal control procedures are not properly designed to ensure transactions are authorized prior to payments. Repeat: Yes - Years as Repeat Finding: Three 2021-004 Auditor's Recommendation: We recommend the Tribe strengthen its implementation on controls over disbursement. View of Responsible Officials: Management agrees with the audit finding and they have a plan in place to correct the finding.
Matching, Level of Effort, Earmarking Federal Program Information: Funding agency: Department of Health and Human Services Title: Child Care and Development Block Grant & Child Care Mandatory and Matching Funds of the Child Care and Development Fund - Clusters AL number: 93.575 & 93.596 Award year and number: 21PARICDC6 & 22PARICCDF Criteria or Specific Requirement: AL 93.596 award was approved for cost sharing or matching. The Tribe is allowed 15% of the amount expended under AL 93.596 for administrative costs. Condition: During our compliance testing the following exceptions were noted: AL 93.575 We were not given copies of the award in its entirety to determine what is approved for cost sharing or matching. AL 93.596 We were not given copies of the award in its entirety to determine if there is the 15% administrative costs and we were not able to determine if there is any matching. Context: We had discussions with management and examined award letters that were provided to us. Questioned Costs: None. Effect: Noncompliance with requirements may result in negative impacts on funding. Cause: Management did not properly implement matching and administrative costs requirements. Repeat: No Auditor's Recommendation: We recommend management gain a better understanding of program matching and administrative costs and follow through with implementation. View of Responsible Officials: Management agrees with the audit finding and they have a plan in place to correct the finding.
Internal Controls and Compliance over Allowable Cost and Allowable Activity - Expenditures Federal Program Information: Funding agency: Department of the Interior Department of Treasury Department of Health and Human Services Title: Aid to Tribal Government Consolidated Tribal Government Programs Coronavirus State and Local Fiscal Recovery Funds Child Care and Development Block Grant & Child Care Mandatory and Matching Funds of the Child Care and Development Fund - Clusters AL number: 15.020; 15,021; 21.027; 93.575 & 93.596 Award year and number: A08AV0089; SLT0380 and 21PARICDC6 & 22PARICCDF Criteria or Specific Requirement: Effective internal controls over the expenditure process should be properly designed to provide assurance of meeting compliance requirements and should operate effectively. All disbursements should have proper written authorization supported with adequate documentation. Disbursement policies and procedures require the signature of the Finance Director and Tribal Administrator or Chief Sachem for authorization. If the Finance Director is unavailable, his signing authority is delegated to Chief Sachem via a delegation of authority form, who is already a required signer. Condition: During our testing of controls over expenditures and capital asset additions, the following exceptions were noted: AL 15.020 The Tribe paid one individual a total of $2,300 for expenditures related to the public health emergency with respect to Covid-19 without adequate approval. They were missing the Finance Director approval. In addition, because of the inadequate support provided we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $19,588 were missing the Finance Director approval and the required three bids with council approval. AL 15.021 On the expenditure testing, out of thirty samples tested, ten samples totaling $10,166 had supporting documentation that was inadequate and we were unable to determine whether the expenditures were an allowable cost or allowable activity. Without any documented delegation support, we were unable to determine the delegation authority of the Finance Director for two samples totaling $3,573 of the thirty samples tested. On the capital asset additions testing, one sample of $1,981 was missing the Finance Director approval and the required three bids with council approval. AL 21.027 On the expenditure testing, out of thirty samples, nine samples totaling $22,000 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $600 for an expenditure related to the public health emergency with respect to Covid-19 without the Finance Director approval. On the capital asset additions testing, out of five samples tested, three samples totaling $14,175 were missing the Finance Director approval and one sample of $5,175 was missing the required three bids with council approval. AL 93.575 & 93.596 On the expenditure testing, out of thirty samples selected we were not provided any supporting documents for four samples totaling $4,857. In addition, four samples totaling $3,454 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. Two samples totaling $810 were missing the Finance Director approval. On the capital asset additions testing, out of four samples tested, three samples totaling $84,217 were missing the Finance Director approval and one sample of $14,568 was missing the required three bids with council approval. Follow up on 2021 AL 21.019 finding On the expenditure testing, out of the twenty five samples tested, five samples totaling $11,873 were missing supporting documentation. Six samples totaling $10,990 had supporting documentation provided that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $1,500 for expenditures related to the public health emergency with respect to Covid-19 without adequate supporting documentation. Therefore, we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $15,000 had supporting documentation that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or an allowable activity. Three samples tested totaling $28,400 were missing the Finance Director approval. Context: We inquired with management and tested two hundred and nine expenditure samples. Questioned Costs: AL 15.020 $600 and prior year follow up AL 21.019 $1,500. Effect: The lack of effective and consistent internal controls exposes the Tribe to a greater risk of fraudulent activities. Cause: Internal control procedures are not properly designed to ensure transactions are authorized prior to payments. Repeat: Yes - Years as Repeat Finding: Three 2021-004 Auditor's Recommendation: We recommend the Tribe strengthen its implementation on controls over disbursement. View of Responsible Officials: Management agrees with the audit finding and they have a plan in place to correct the finding.
Internal Controls and Compliance over Allowable Cost and Allowable Activity - Expenditures Federal Program Information: Funding agency: Department of the Interior Department of Treasury Department of Health and Human Services Title: Aid to Tribal Government Consolidated Tribal Government Programs Coronavirus State and Local Fiscal Recovery Funds Child Care and Development Block Grant & Child Care Mandatory and Matching Funds of the Child Care and Development Fund - Clusters AL number: 15.020; 15,021; 21.027; 93.575 & 93.596 Award year and number: A08AV0089; SLT0380 and 21PARICDC6 & 22PARICCDF Criteria or Specific Requirement: Effective internal controls over the expenditure process should be properly designed to provide assurance of meeting compliance requirements and should operate effectively. All disbursements should have proper written authorization supported with adequate documentation. Disbursement policies and procedures require the signature of the Finance Director and Tribal Administrator or Chief Sachem for authorization. If the Finance Director is unavailable, his signing authority is delegated to Chief Sachem via a delegation of authority form, who is already a required signer. Condition: During our testing of controls over expenditures and capital asset additions, the following exceptions were noted: AL 15.020 The Tribe paid one individual a total of $2,300 for expenditures related to the public health emergency with respect to Covid-19 without adequate approval. They were missing the Finance Director approval. In addition, because of the inadequate support provided we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $19,588 were missing the Finance Director approval and the required three bids with council approval. AL 15.021 On the expenditure testing, out of thirty samples tested, ten samples totaling $10,166 had supporting documentation that was inadequate and we were unable to determine whether the expenditures were an allowable cost or allowable activity. Without any documented delegation support, we were unable to determine the delegation authority of the Finance Director for two samples totaling $3,573 of the thirty samples tested. On the capital asset additions testing, one sample of $1,981 was missing the Finance Director approval and the required three bids with council approval. AL 21.027 On the expenditure testing, out of thirty samples, nine samples totaling $22,000 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $600 for an expenditure related to the public health emergency with respect to Covid-19 without the Finance Director approval. On the capital asset additions testing, out of five samples tested, three samples totaling $14,175 were missing the Finance Director approval and one sample of $5,175 was missing the required three bids with council approval. AL 93.575 & 93.596 On the expenditure testing, out of thirty samples selected we were not provided any supporting documents for four samples totaling $4,857. In addition, four samples totaling $3,454 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. Two samples totaling $810 were missing the Finance Director approval. On the capital asset additions testing, out of four samples tested, three samples totaling $84,217 were missing the Finance Director approval and one sample of $14,568 was missing the required three bids with council approval. Follow up on 2021 AL 21.019 finding On the expenditure testing, out of the twenty five samples tested, five samples totaling $11,873 were missing supporting documentation. Six samples totaling $10,990 had supporting documentation provided that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $1,500 for expenditures related to the public health emergency with respect to Covid-19 without adequate supporting documentation. Therefore, we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $15,000 had supporting documentation that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or an allowable activity. Three samples tested totaling $28,400 were missing the Finance Director approval. Context: We inquired with management and tested two hundred and nine expenditure samples. Questioned Costs: AL 15.020 $600 and prior year follow up AL 21.019 $1,500. Effect: The lack of effective and consistent internal controls exposes the Tribe to a greater risk of fraudulent activities. Cause: Internal control procedures are not properly designed to ensure transactions are authorized prior to payments. Repeat: Yes - Years as Repeat Finding: Three 2021-004 Auditor's Recommendation: We recommend the Tribe strengthen its implementation on controls over disbursement. View of Responsible Officials: Management agrees with the audit finding and they have a plan in place to correct the finding.
Internal Controls and Compliance over Allowable Cost and Allowable Activity - Expenditures Federal Program Information: Funding agency: Department of the Interior Department of Treasury Department of Health and Human Services Title: Aid to Tribal Government Consolidated Tribal Government Programs Coronavirus State and Local Fiscal Recovery Funds Child Care and Development Block Grant & Child Care Mandatory and Matching Funds of the Child Care and Development Fund - Clusters AL number: 15.020; 15,021; 21.027; 93.575 & 93.596 Award year and number: A08AV0089; SLT0380 and 21PARICDC6 & 22PARICCDF Criteria or Specific Requirement: Effective internal controls over the expenditure process should be properly designed to provide assurance of meeting compliance requirements and should operate effectively. All disbursements should have proper written authorization supported with adequate documentation. Disbursement policies and procedures require the signature of the Finance Director and Tribal Administrator or Chief Sachem for authorization. If the Finance Director is unavailable, his signing authority is delegated to Chief Sachem via a delegation of authority form, who is already a required signer. Condition: During our testing of controls over expenditures and capital asset additions, the following exceptions were noted: AL 15.020 The Tribe paid one individual a total of $2,300 for expenditures related to the public health emergency with respect to Covid-19 without adequate approval. They were missing the Finance Director approval. In addition, because of the inadequate support provided we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $19,588 were missing the Finance Director approval and the required three bids with council approval. AL 15.021 On the expenditure testing, out of thirty samples tested, ten samples totaling $10,166 had supporting documentation that was inadequate and we were unable to determine whether the expenditures were an allowable cost or allowable activity. Without any documented delegation support, we were unable to determine the delegation authority of the Finance Director for two samples totaling $3,573 of the thirty samples tested. On the capital asset additions testing, one sample of $1,981 was missing the Finance Director approval and the required three bids with council approval. AL 21.027 On the expenditure testing, out of thirty samples, nine samples totaling $22,000 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $600 for an expenditure related to the public health emergency with respect to Covid-19 without the Finance Director approval. On the capital asset additions testing, out of five samples tested, three samples totaling $14,175 were missing the Finance Director approval and one sample of $5,175 was missing the required three bids with council approval. AL 93.575 & 93.596 On the expenditure testing, out of thirty samples selected we were not provided any supporting documents for four samples totaling $4,857. In addition, four samples totaling $3,454 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. Two samples totaling $810 were missing the Finance Director approval. On the capital asset additions testing, out of four samples tested, three samples totaling $84,217 were missing the Finance Director approval and one sample of $14,568 was missing the required three bids with council approval. Follow up on 2021 AL 21.019 finding On the expenditure testing, out of the twenty five samples tested, five samples totaling $11,873 were missing supporting documentation. Six samples totaling $10,990 had supporting documentation provided that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $1,500 for expenditures related to the public health emergency with respect to Covid-19 without adequate supporting documentation. Therefore, we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $15,000 had supporting documentation that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or an allowable activity. Three samples tested totaling $28,400 were missing the Finance Director approval. Context: We inquired with management and tested two hundred and nine expenditure samples. Questioned Costs: AL 15.020 $600 and prior year follow up AL 21.019 $1,500. Effect: The lack of effective and consistent internal controls exposes the Tribe to a greater risk of fraudulent activities. Cause: Internal control procedures are not properly designed to ensure transactions are authorized prior to payments. Repeat: Yes - Years as Repeat Finding: Three 2021-004 Auditor's Recommendation: We recommend the Tribe strengthen its implementation on controls over disbursement. View of Responsible Officials: Management agrees with the audit finding and they have a plan in place to correct the finding.
Allowable Costs - Premium/Hazard Pay Federal Program Information: Funding agency: Department of Treasury Title: Coronavirus State and Local Fiscal Recovery Funds AL number: 21.027 Award year and number: 2021 Criteria or Specific Requirement: The Coronavirus State and Local Fiscal Recovery Funds may be used to provide premium pay to eligible workers performing essential work during the Covid-19 public health emergency. The American Rescue Plan Act defines premium pay as an amount up to $13 per hour, in addition to wages or remuneration the worker otherwise receives. Premium pay is limited to an aggregate amount not to exceed $25,000 per eligible worker during the program. Condition: Twenty seven employees received more than $25,000 as of December 31, 2022. The total amount exceeded $25,000 is $161,250. Context: We reviewed seventy eight employees who were paid premium/hazard pay. Questioned Costs: $161,250. Effect: Noncompliance with requirements may result in negative impacts on funding. Cause: Management did not monitor the requirements to ensure premium/hazard pay did not exceed $25,000 per eligible worker during the program. Repeat: No Auditor's Recommendation: We recommend management monitor its premium/hazard pay to ensure the amount paid out did not exceed $25,000 per eligible worker during the program. View of Responsible Officials: Management agrees with the audit finding and they have a plan in place to correct the finding.
Internal Controls and Compliance over Allowable Cost and Allowable Activity - Expenditures Federal Program Information: Funding agency: Department of the Interior Department of Treasury Department of Health and Human Services Title: Aid to Tribal Government Consolidated Tribal Government Programs Coronavirus State and Local Fiscal Recovery Funds Child Care and Development Block Grant & Child Care Mandatory and Matching Funds of the Child Care and Development Fund - Clusters AL number: 15.020; 15,021; 21.027; 93.575 & 93.596 Award year and number: A08AV0089; SLT0380 and 21PARICDC6 & 22PARICCDF Criteria or Specific Requirement: Effective internal controls over the expenditure process should be properly designed to provide assurance of meeting compliance requirements and should operate effectively. All disbursements should have proper written authorization supported with adequate documentation. Disbursement policies and procedures require the signature of the Finance Director and Tribal Administrator or Chief Sachem for authorization. If the Finance Director is unavailable, his signing authority is delegated to Chief Sachem via a delegation of authority form, who is already a required signer. Condition: During our testing of controls over expenditures and capital asset additions, the following exceptions were noted: AL 15.020 The Tribe paid one individual a total of $2,300 for expenditures related to the public health emergency with respect to Covid-19 without adequate approval. They were missing the Finance Director approval. In addition, because of the inadequate support provided we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $19,588 were missing the Finance Director approval and the required three bids with council approval. AL 15.021 On the expenditure testing, out of thirty samples tested, ten samples totaling $10,166 had supporting documentation that was inadequate and we were unable to determine whether the expenditures were an allowable cost or allowable activity. Without any documented delegation support, we were unable to determine the delegation authority of the Finance Director for two samples totaling $3,573 of the thirty samples tested. On the capital asset additions testing, one sample of $1,981 was missing the Finance Director approval and the required three bids with council approval. AL 21.027 On the expenditure testing, out of thirty samples, nine samples totaling $22,000 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $600 for an expenditure related to the public health emergency with respect to Covid-19 without the Finance Director approval. On the capital asset additions testing, out of five samples tested, three samples totaling $14,175 were missing the Finance Director approval and one sample of $5,175 was missing the required three bids with council approval. AL 93.575 & 93.596 On the expenditure testing, out of thirty samples selected we were not provided any supporting documents for four samples totaling $4,857. In addition, four samples totaling $3,454 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. Two samples totaling $810 were missing the Finance Director approval. On the capital asset additions testing, out of four samples tested, three samples totaling $84,217 were missing the Finance Director approval and one sample of $14,568 was missing the required three bids with council approval. Follow up on 2021 AL 21.019 finding On the expenditure testing, out of the twenty five samples tested, five samples totaling $11,873 were missing supporting documentation. Six samples totaling $10,990 had supporting documentation provided that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $1,500 for expenditures related to the public health emergency with respect to Covid-19 without adequate supporting documentation. Therefore, we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $15,000 had supporting documentation that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or an allowable activity. Three samples tested totaling $28,400 were missing the Finance Director approval. Context: We inquired with management and tested two hundred and nine expenditure samples. Questioned Costs: AL 15.020 $600 and prior year follow up AL 21.019 $1,500. Effect: The lack of effective and consistent internal controls exposes the Tribe to a greater risk of fraudulent activities. Cause: Internal control procedures are not properly designed to ensure transactions are authorized prior to payments. Repeat: Yes - Years as Repeat Finding: Three 2021-004 Auditor's Recommendation: We recommend the Tribe strengthen its implementation on controls over disbursement. View of Responsible Officials: Management agrees with the audit finding and they have a plan in place to correct the finding.
Matching, Level of Effort, Earmarking Federal Program Information: Funding agency: Department of Health and Human Services Title: Child Care and Development Block Grant & Child Care Mandatory and Matching Funds of the Child Care and Development Fund - Clusters AL number: 93.575 & 93.596 Award year and number: 21PARICDC6 & 22PARICCDF Criteria or Specific Requirement: AL 93.596 award was approved for cost sharing or matching. The Tribe is allowed 15% of the amount expended under AL 93.596 for administrative costs. Condition: During our compliance testing the following exceptions were noted: AL 93.575 We were not given copies of the award in its entirety to determine what is approved for cost sharing or matching. AL 93.596 We were not given copies of the award in its entirety to determine if there is the 15% administrative costs and we were not able to determine if there is any matching. Context: We had discussions with management and examined award letters that were provided to us. Questioned Costs: None. Effect: Noncompliance with requirements may result in negative impacts on funding. Cause: Management did not properly implement matching and administrative costs requirements. Repeat: No Auditor's Recommendation: We recommend management gain a better understanding of program matching and administrative costs and follow through with implementation. View of Responsible Officials: Management agrees with the audit finding and they have a plan in place to correct the finding.
Internal Controls and Compliance over Allowable Cost and Allowable Activity - Expenditures Federal Program Information: Funding agency: Department of the Interior Department of Treasury Department of Health and Human Services Title: Aid to Tribal Government Consolidated Tribal Government Programs Coronavirus State and Local Fiscal Recovery Funds Child Care and Development Block Grant & Child Care Mandatory and Matching Funds of the Child Care and Development Fund - Clusters AL number: 15.020; 15,021; 21.027; 93.575 & 93.596 Award year and number: A08AV0089; SLT0380 and 21PARICDC6 & 22PARICCDF Criteria or Specific Requirement: Effective internal controls over the expenditure process should be properly designed to provide assurance of meeting compliance requirements and should operate effectively. All disbursements should have proper written authorization supported with adequate documentation. Disbursement policies and procedures require the signature of the Finance Director and Tribal Administrator or Chief Sachem for authorization. If the Finance Director is unavailable, his signing authority is delegated to Chief Sachem via a delegation of authority form, who is already a required signer. Condition: During our testing of controls over expenditures and capital asset additions, the following exceptions were noted: AL 15.020 The Tribe paid one individual a total of $2,300 for expenditures related to the public health emergency with respect to Covid-19 without adequate approval. They were missing the Finance Director approval. In addition, because of the inadequate support provided we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $19,588 were missing the Finance Director approval and the required three bids with council approval. AL 15.021 On the expenditure testing, out of thirty samples tested, ten samples totaling $10,166 had supporting documentation that was inadequate and we were unable to determine whether the expenditures were an allowable cost or allowable activity. Without any documented delegation support, we were unable to determine the delegation authority of the Finance Director for two samples totaling $3,573 of the thirty samples tested. On the capital asset additions testing, one sample of $1,981 was missing the Finance Director approval and the required three bids with council approval. AL 21.027 On the expenditure testing, out of thirty samples, nine samples totaling $22,000 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $600 for an expenditure related to the public health emergency with respect to Covid-19 without the Finance Director approval. On the capital asset additions testing, out of five samples tested, three samples totaling $14,175 were missing the Finance Director approval and one sample of $5,175 was missing the required three bids with council approval. AL 93.575 & 93.596 On the expenditure testing, out of thirty samples selected we were not provided any supporting documents for four samples totaling $4,857. In addition, four samples totaling $3,454 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. Two samples totaling $810 were missing the Finance Director approval. On the capital asset additions testing, out of four samples tested, three samples totaling $84,217 were missing the Finance Director approval and one sample of $14,568 was missing the required three bids with council approval. Follow up on 2021 AL 21.019 finding On the expenditure testing, out of the twenty five samples tested, five samples totaling $11,873 were missing supporting documentation. Six samples totaling $10,990 had supporting documentation provided that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $1,500 for expenditures related to the public health emergency with respect to Covid-19 without adequate supporting documentation. Therefore, we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $15,000 had supporting documentation that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or an allowable activity. Three samples tested totaling $28,400 were missing the Finance Director approval. Context: We inquired with management and tested two hundred and nine expenditure samples. Questioned Costs: AL 15.020 $600 and prior year follow up AL 21.019 $1,500. Effect: The lack of effective and consistent internal controls exposes the Tribe to a greater risk of fraudulent activities. Cause: Internal control procedures are not properly designed to ensure transactions are authorized prior to payments. Repeat: Yes - Years as Repeat Finding: Three 2021-004 Auditor's Recommendation: We recommend the Tribe strengthen its implementation on controls over disbursement. View of Responsible Officials: Management agrees with the audit finding and they have a plan in place to correct the finding.
Matching, Level of Effort, Earmarking Federal Program Information: Funding agency: Department of Health and Human Services Title: Child Care and Development Block Grant & Child Care Mandatory and Matching Funds of the Child Care and Development Fund - Clusters AL number: 93.575 & 93.596 Award year and number: 21PARICDC6 & 22PARICCDF Criteria or Specific Requirement: AL 93.596 award was approved for cost sharing or matching. The Tribe is allowed 15% of the amount expended under AL 93.596 for administrative costs. Condition: During our compliance testing the following exceptions were noted: AL 93.575 We were not given copies of the award in its entirety to determine what is approved for cost sharing or matching. AL 93.596 We were not given copies of the award in its entirety to determine if there is the 15% administrative costs and we were not able to determine if there is any matching. Context: We had discussions with management and examined award letters that were provided to us. Questioned Costs: None. Effect: Noncompliance with requirements may result in negative impacts on funding. Cause: Management did not properly implement matching and administrative costs requirements. Repeat: No Auditor's Recommendation: We recommend management gain a better understanding of program matching and administrative costs and follow through with implementation. View of Responsible Officials: Management agrees with the audit finding and they have a plan in place to correct the finding.
Internal Controls and Compliance over Allowable Cost and Allowable Activity - Expenditures Federal Program Information: Funding agency: Department of the Interior Department of Treasury Department of Health and Human Services Title: Aid to Tribal Government Consolidated Tribal Government Programs Coronavirus State and Local Fiscal Recovery Funds Child Care and Development Block Grant & Child Care Mandatory and Matching Funds of the Child Care and Development Fund - Clusters AL number: 15.020; 15,021; 21.027; 93.575 & 93.596 Award year and number: A08AV0089; SLT0380 and 21PARICDC6 & 22PARICCDF Criteria or Specific Requirement: Effective internal controls over the expenditure process should be properly designed to provide assurance of meeting compliance requirements and should operate effectively. All disbursements should have proper written authorization supported with adequate documentation. Disbursement policies and procedures require the signature of the Finance Director and Tribal Administrator or Chief Sachem for authorization. If the Finance Director is unavailable, his signing authority is delegated to Chief Sachem via a delegation of authority form, who is already a required signer. Condition: During our testing of controls over expenditures and capital asset additions, the following exceptions were noted: AL 15.020 The Tribe paid one individual a total of $2,300 for expenditures related to the public health emergency with respect to Covid-19 without adequate approval. They were missing the Finance Director approval. In addition, because of the inadequate support provided we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $19,588 were missing the Finance Director approval and the required three bids with council approval. AL 15.021 On the expenditure testing, out of thirty samples tested, ten samples totaling $10,166 had supporting documentation that was inadequate and we were unable to determine whether the expenditures were an allowable cost or allowable activity. Without any documented delegation support, we were unable to determine the delegation authority of the Finance Director for two samples totaling $3,573 of the thirty samples tested. On the capital asset additions testing, one sample of $1,981 was missing the Finance Director approval and the required three bids with council approval. AL 21.027 On the expenditure testing, out of thirty samples, nine samples totaling $22,000 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $600 for an expenditure related to the public health emergency with respect to Covid-19 without the Finance Director approval. On the capital asset additions testing, out of five samples tested, three samples totaling $14,175 were missing the Finance Director approval and one sample of $5,175 was missing the required three bids with council approval. AL 93.575 & 93.596 On the expenditure testing, out of thirty samples selected we were not provided any supporting documents for four samples totaling $4,857. In addition, four samples totaling $3,454 had inadequate supporting documentation. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. Two samples totaling $810 were missing the Finance Director approval. On the capital asset additions testing, out of four samples tested, three samples totaling $84,217 were missing the Finance Director approval and one sample of $14,568 was missing the required three bids with council approval. Follow up on 2021 AL 21.019 finding On the expenditure testing, out of the twenty five samples tested, five samples totaling $11,873 were missing supporting documentation. Six samples totaling $10,990 had supporting documentation provided that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or allowable activity. The Tribe paid one individual a total of $1,500 for expenditures related to the public health emergency with respect to Covid-19 without adequate supporting documentation. Therefore, we were unable to determine whether the expenditures were allowable costs or allowable activities. On the capital asset additions testing, two samples totaling $15,000 had supporting documentation that was inadequate. Therefore, we were unable to determine whether the expenditures were an allowable cost or an allowable activity. Three samples tested totaling $28,400 were missing the Finance Director approval. Context: We inquired with management and tested two hundred and nine expenditure samples. Questioned Costs: AL 15.020 $600 and prior year follow up AL 21.019 $1,500. Effect: The lack of effective and consistent internal controls exposes the Tribe to a greater risk of fraudulent activities. Cause: Internal control procedures are not properly designed to ensure transactions are authorized prior to payments. Repeat: Yes - Years as Repeat Finding: Three 2021-004 Auditor's Recommendation: We recommend the Tribe strengthen its implementation on controls over disbursement. View of Responsible Officials: Management agrees with the audit finding and they have a plan in place to correct the finding.