Audit 378333

2025-003 Significant Deficiency – Allowable Costs/Cost Principles Information on Federal Programs U.S. Department of Energy – Weatherization Assistance for Low-Income Persons (Passed through from the North Dakota Division of Community Services) - Award #5293-DOE24-30 and 5212-DOEBIL-30 AL# 81.042 Criteria – Per the grant award, payments for out-of-state travel must be approved by the grantor prior to the actual travel undertaken by the recipient. Condition – The Organization does not have documentation of approval for out-of-state travel costs. Cause – Management oversight. Effect or Potential Effect – The Organization charged costs to the grant that had not been approved. Questioned Costs – Immaterial Context – As part of the single audit testing, 40 transactions were selected for testing. One invoice tested was for out-of-state travel costs and there was no documentation of approval for the costs by the grantor. Repeat Finding – This is a new finding. Recommendation – The Organization should review their policies and procedures for out of state travel to ensure approval is being received and documented prior to the travel being undertaken.

2025-004 Significant Deficiency – Eligibility Information on Federal Programs Low-Income Home Energy Assistance Program (Passed through from the North Dakota Division of Community Services) - Award# 5138-LIHEAP-ARPA-30, 5195-LIHEAP23-30 AL# 93.568 Criteria – Uniform Guidance requires an entity to have specific documentation in a client’s file. Also, a properly designed system of internal controls requires an entity to review and approve all applications where a client will receive a benefit paid with federal funds. Condition – One client file was missing the appropriate documentation and approval. Cause – The Organization did not have controls in place to ensure proper documentation was maintained in its client files and that the application was properly reviewed and approved. Effect or Potential Effect – There is an increased risk of a client receiving a federal benefit they did not qualify for. Questioned Costs – None Context – A sample of 32 clients were tested from a population of 212 clients. We noted one instance where a client file was missing the application and also the cooling program checklist which documents the Organizations review and approval. Repeat Finding – This is a new finding. Recommendation – The Organization should implement policies and procedures to ensure client files have all documentation required by the program and that all applications are reviewed and approved.