2023 - 003 - Reporting (Material weakness in Internal Controls over Compliance) - Repeated and
Modified (Prior Year Finding 2022-002)
Federal program information:
Funding Agency: Program Title:
Federal Assistance
Listing Number:
U.S. Department of Housing and Urban
Development (Follow-up on PY findi...
2023 - 003 - Reporting (Material weakness in Internal Controls over Compliance) - Repeated and
Modified (Prior Year Finding 2022-002)
Federal program information:
Funding Agency: Program Title:
Federal Assistance
Listing Number:
U.S. Department of Housing and Urban
Development (Follow-up on PY finding)
Indian Housing Block Grant 14.867
U.S. Department of Treasury Coronavirus State and Local Fiscal
Recovery Funds
21.027
Condition:
The Governmental Department did not submit their required Federal Financial Reports (SF-425) and
Project and Expenditure Report within the required three and one month's respectively after the end of
fiscal year. In addition, the reporting package and data collection form for the year ended December 31,
2023, was not filed by the deadline of September 30, 2024, to the Federal Audit Clearinghouse.
Criteria:
Title 2 CFR 200.327 requires programs to submit financial information to the funding agency using
standard financial reporting forms. These reports are to be submitted by the required due date and be
accurately completed and supported by the underlying accounting records. In accordance with 2 CFR
Section 200.512(a), the audit must be completed and the data collection form and reporting package
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report, or nine
months after the end of the audit period, adjusted for any extensions permitted by the Office of
management and Budget.
Cause:
The Governmental Department policies were not always followed or controls were not in place to ensure
complete and accurate information could be provided timely.
Effect:
The Governmental Department was not in compliance with federal regulations and guidelines for
(SF-425), Project and Expenditure Report and single audit submissions.
Auditor's Recommendation:
The Governmental Department should implement controls for filing the Federal Financial Reports, (SF-
425), Project and Expenditure Report, and the single audit report in a timely manner.
Management’s Response:
Due to delays caused by the pandemic, in conjunction with some major turnover in fiscal staff the Tribe
fell behind in completing its annual audits, and other required grant reporting. In the first half 2023 the
Tribe was able to hire a quarter-time CFO and fill one position in the department. Since the department
had staff, they were able to complete the 2022 outstanding audit. The new staff was learning the process
of grant reporting and other compliance matters, and at the time of this report have made improvements
to implement internal controls to assist with the regulation of all compliance matters. Estimated Completion Date:
March 03, 2025-Due to the newly elected Tribal Administration and restructuring of positions as well as
training opportunities for fiscal and the executive committee.
Responsible Party:
The Tribal Administrator in collaboration with the Cahto Executive Committee is responsible to ensure the
Fiscal department, the Department Directors and management are trained and adhere to existing policies
and procedures.