FAC Explorer

Audit 44121

FY End
2022-12-31
Total Expended
$5.28M
Findings
4
Programs
14
Organization: Native Village of Selawik (AK)
Year: 2022 Accepted: 2023-09-16
Auditor: Porter & Allison INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38854 2022-003 Significant Deficiency Yes B
38855 2022-004 Significant Deficiency - L
615296 2022-003 Significant Deficiency Yes B
615297 2022-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.41M Yes 2
15.020 Aid to Tribal Governments $435,000 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $376,607 - 0
15.024 Indian Self-Determination Contract Support $312,488 - 0
20.205 Highway Planning and Construction $201,905 - 0
66.926 Indian Environmental General Assistance Program (gap) $150,692 - 0
93.210 Tribal Self-Governance Program: Ihs Compacts/funding Agreements $126,780 - 0
15.040 Real Estate Programs_indian Lands $84,309 - 0
11.029 Tribal Broadband Connectivity Program $71,528 - 0
15.144 Indian Child Welfare Act_title II Grants $68,645 - 0
15.114 Indian Education_higher Education Grant Program $21,162 - 0
15.654 Visitor Facility Enhancements - Refuges and Wildlife $18,000 - 0
15.026 Indian Adult Education $1,000 - 0
15.030 Indian Law Enforcement $900 - 0

Contacts

Name Title Type
YG5MLLKCKJL7 Tanya Ballot Auditee
9074842226 David B Porter Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Native Village of Selawik 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Native Village of Selawik, it is not intended to and does not represent the financial position, change in net position or cash flows of Native Village of Selawik. 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. 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 auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-003
2022-003 Allowable Costs/Cost Principles - Significant Deficiency in Internal Control over Compliance Identification of federal programs: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: Title 2 U.S. Code Part 200.403(g) requires that for costs charged to a federal program to be allowable, they must be adequately documented. Condition: Payroll related costs charged to the program did not have Personal Action Forms to document the rate of pay for the employee in accordance with the IRA Council?s own Finance Policies & Procedures Manual Chapter 7.1. Additionally, major procurements did not have the proper procurement authority approval and support in accordance with the IRA Council?s own Finance Policies & Procedures Manual Chapter 6.7 ? 6.10. Cause: The IRA Council was adjusting to challenges created by the COVID-19 pandemic. Effect or potential effect: Although charges were still approved and supported, not following established financial policies and procedures increases the risk that internal control failures, questioned costs and noncompliance could arise in the future over major federal programs. Questioned Costs: None Context: During our sample testing for allowable costs in 2022 as a major program, we identified 17 payroll transactions in our random allowable cost sample of 40 that did not have approved payrate support in the form of a Personal Action Form as required by the IRA Council?s own financial policies and procedures. Additionally, although no individual transaction exceeded program materiality were identified in our major program testwork, 2 vendors identified during capital additions testwork for both 2021 and 2022 were noted not to have additional quotes for supplies and services provided that were charged to the program, which exceeded the micropurchase threshold. Identification of Repeat Finding: Repeated for 21.027 Coronavirus State and Local Fiscal Recovery Funds. Recommendations: We recommend the IRA Council review its financial policies and procedures and implement and/or revise accordingly to ensure the conform to both uniform guidance and internal policies and procedures to satisfy adequate internal controls. Views of Responsible Officials: See Corrective Action Plan
Finding 2022-004
2022-004 Reporting - Significant Deficiency in Internal Control over Compliance and Noncompliance Identification of federal programs: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: For the 2022 period under audit, the IRA Council was required to submit an annual Project and Expenditure Report for the period March 3, 2021 ? March 31, 2022 by the due date April 30, 2022. Condition: The report was prepared in draft form but was not ever submitted by the April 30, 2022 deadline as required. Cause: The IRA Council was adjusting to challenges created by the COVID-19 pandemic. Effect or potential effect: Information desired by Treasury for collection, information and reporting purposes was not provided as required through timely filing of the annual report. Questioned Costs: None Context: It was noted from the compliance report information provided by the Tribal Administrator on the Treasury Covid-19 Relief Hub, that the required report was still in draft form in the status section. Identification of Repeat Finding: Not applicable Recommendations: We recommend the IRA Council review its financial policies and procedures over grant reporting requirements and implement accordingly to conform to both the uniform guidance and its own internal controls. Views of Responsible Officials: See Corrective Action Plan
Finding 2022-003
2022-003 Allowable Costs/Cost Principles - Significant Deficiency in Internal Control over Compliance Identification of federal programs: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: Title 2 U.S. Code Part 200.403(g) requires that for costs charged to a federal program to be allowable, they must be adequately documented. Condition: Payroll related costs charged to the program did not have Personal Action Forms to document the rate of pay for the employee in accordance with the IRA Council?s own Finance Policies & Procedures Manual Chapter 7.1. Additionally, major procurements did not have the proper procurement authority approval and support in accordance with the IRA Council?s own Finance Policies & Procedures Manual Chapter 6.7 ? 6.10. Cause: The IRA Council was adjusting to challenges created by the COVID-19 pandemic. Effect or potential effect: Although charges were still approved and supported, not following established financial policies and procedures increases the risk that internal control failures, questioned costs and noncompliance could arise in the future over major federal programs. Questioned Costs: None Context: During our sample testing for allowable costs in 2022 as a major program, we identified 17 payroll transactions in our random allowable cost sample of 40 that did not have approved payrate support in the form of a Personal Action Form as required by the IRA Council?s own financial policies and procedures. Additionally, although no individual transaction exceeded program materiality were identified in our major program testwork, 2 vendors identified during capital additions testwork for both 2021 and 2022 were noted not to have additional quotes for supplies and services provided that were charged to the program, which exceeded the micropurchase threshold. Identification of Repeat Finding: Repeated for 21.027 Coronavirus State and Local Fiscal Recovery Funds. Recommendations: We recommend the IRA Council review its financial policies and procedures and implement and/or revise accordingly to ensure the conform to both uniform guidance and internal policies and procedures to satisfy adequate internal controls. Views of Responsible Officials: See Corrective Action Plan
Finding 2022-004
2022-004 Reporting - Significant Deficiency in Internal Control over Compliance and Noncompliance Identification of federal programs: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: For the 2022 period under audit, the IRA Council was required to submit an annual Project and Expenditure Report for the period March 3, 2021 ? March 31, 2022 by the due date April 30, 2022. Condition: The report was prepared in draft form but was not ever submitted by the April 30, 2022 deadline as required. Cause: The IRA Council was adjusting to challenges created by the COVID-19 pandemic. Effect or potential effect: Information desired by Treasury for collection, information and reporting purposes was not provided as required through timely filing of the annual report. Questioned Costs: None Context: It was noted from the compliance report information provided by the Tribal Administrator on the Treasury Covid-19 Relief Hub, that the required report was still in draft form in the status section. Identification of Repeat Finding: Not applicable Recommendations: We recommend the IRA Council review its financial policies and procedures over grant reporting requirements and implement accordingly to conform to both the uniform guidance and its own internal controls. Views of Responsible Officials: See Corrective Action Plan