Audit 398166

Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of the Treasury Federal Program: State and Local Fiscal Recovery Funds Program Assistance Listing Number: 21.027 Award Number: SLFRP2477 Award Year: 2021 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Reporting requirements under the revised SLFRF program guidance state that tribal governments that received less than $30 million in SLFRF funds are required to submit an annual Project and Expenditure Report in accordance with program guidance. The second annual report was due by April 30, 2023. Condition and Context: The Village did not adhere to the annual reporting requirements specified in the program guidance. During our review of the annual report, it was noted that the report was not submitted timely. Cause: The Village was severely affected by the pandemic during FY22. Due to several interruptions in the normal operation for the Village and lack of available personnel in the accounting department, the report was not prepared and submitted within the required deadline. Effect: Failure to follow compliance requirements could result in suspension of Federal funding. Questioned Costs: None noted. Repeat Finding: This is a repeat of Finding 2021-004, and since it is a repeat finding we believe this to be a systemic issue. Recommendation: We recommend that management complies with all reporting requirements. Management response: Management agrees with finding. See Corrective Action Plan.

Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Indian Housing Block Grant Assistance Listing Number: 14.867 Award Number: 55IT0201380 Award Year: 2022 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Reporting requirements within the grant agreements state that quarterly financial and narrative reports must be submitted within 30 days of end of quarter. The annual plan/performance report must be submitted within 90 days after year end. Also, support for reported expenses should be available. Condition and Context: The Village did not adhere to the quarterly reporting requirements specified in the grant agreements. During our review of the quarterly reports, it was noted that both of the reports tested were submitted late, and not within the program year in which it should have. Management was not able to provide support for the required report related to form HUD-60002 and submitted late the annual plan/performance report HUD-52737. Cause: The Village was severely affected by the pandemic during the previous two fiscal years. Due to several interruptions in the normal operation for the Village and lack of available personnel in the accounting and the housing department, reports were not prepared and submitted within the required deadline. Effect: Failure to follow compliance reporting requirements could result in suspension of Federal funding. Questioned Costs: None noted. Repeat Finding: This is a repeat of Finding 2021-002, and since it is a repeat finding we believe this to be a systemic issue. Recommendation: We recommend that management complies with all reporting requirements. Management response: Management agrees with finding. See Corrective Action Plan.

Lack of Internal Controls over Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Agency: U.S. Department of Housing and Urban Development / U.S. Department of the Treasury Federal Program: Indian Housing Block Grant / State and Local Fiscal Recovery Funds Assistance Listing Number: 14.867 / 21.027 Award Number: 55IT0201380 / SLFRP2477 Award Year: 2022 / 2021 Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Internal control procedures should be in place to ensure that the payroll accounting system is maintained to be able to accurately record payroll transactions. Payroll transactions should be supported by approved timesheets and pay rates, and coding. Deductions should be documented in the personnel files. Condition and Context: During our testing of internal controls over payroll transactions for compliance, we noted two transactions where the employees’ timesheets were missing. We were unable to substantiate the hours the employees worked or management’s review and approval. Cause: The Village was severely affected by the pandemic during the previous two fiscal years. Due to several interruptions in the normal operation for the Village and lack of available personnel in the accounting and various program departments, accounting procedures were not performed timely. Effect: The lack of internal controls over payroll transactions allows for the potential for misstatement of expenditures due to employees being paid incorrectly. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management strengthen their internal controls over timesheet tracking, review and approval. Management response: Management agrees with finding. See Corrective Action Plan.

Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of the Interior / U.S. Department of Housing and Urban Development / U.S. Department of the Treasury Federal Program: Tribal Self-Governance / Indian Housing Block Grant / Emergency Rental Assistance Program / State and Local Fiscal Recovery Funds ALN: 15.022 / 14.867 / 21.023 / 21.027 Award Number: OSGT033 / 55IT0201380 / HAF0127 / SLFRP2477 Award Year: 2022 / 2022 / 2021 / 2021 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Uniform Guidance requires that the reporting package be submitted within the earlier of 9 months after year end or 30 days after the report issuance in accordance with the provisions of 2 CFR part 200, subpart F, section 200.512. Condition and Context: The Village did not adhere to the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after the receipt of the audit report, or the nine after the end of the audit period. Cause: Lack of internal controls around Uniform Guidance requirements. Effect: The Village was not in compliance with reporting requirements. Questioned Costs: None noted. Repeat Finding: This is a repeat of Finding 2021-004. The finding appears to be a systemic issue. Recommendation: We recommend that management comply with Uniform Guidance reporting requirement. Management response: Management agrees with finding. See Corrective Action Plan.