Finding 1062123 (2023-005)

Significant Deficiency Repeat Finding
Requirement
F
Questioned Costs
-
Year
2023
Accepted
2024-09-04

AI Summary

  • Core Issue: CBNHC has not conducted a required physical inventory of property and equipment for over two years, violating federal regulations.
  • Impacted Requirements: Non-compliance with 2 CFR section 200.313 and CBNHC’s own Financial Policies, which mandate annual inventory checks and reconciliations.
  • Recommended Follow-Up: CBNHC should prioritize conducting a physical inventory and ensure it aligns with financial records to regain compliance.

Finding Text

2023-005 — Equipment and Real Property Management Federal/state program information: Funding agency: U.S. Department of Health and Human Services Title: Indian Self-Determination ALN: 93.441 Award period: 10/1/2022 – 9/30/2023 Criteria: 2 CFR section 200.313 requires that (1) equipment be used in the program or project for which it was acquired as long as needed, (2) property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, and cost of the property, and (3) a physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Additionally, CBNHC’s Financial Policies and Procedures require a physical inventory of property be taken annually and reconciled to the general ledger. Condition: CBNHC has not completed a physical inventory of property and equipment in the last two years. Context: N/A Questioned Costs: None. Cause: CBNHC was significantly impacted by the COVID-19 pandemic. Additionally, CBNHC is not implementing their Financial Policies and Procedures to ensure that a physical inventory has been taken annually and reconciled to the general ledger. Effect: CBNHC is not in compliance with equipment and real property management requirements for the Indian Self-Determination program. Auditor’s Recommendations: CBNHC should implement its Financial Policies and Procedures and plan a physical inventory of its property as quickly as possible. The results of the physical inventory should be reconciled to the general ledger. Management’s Response: CBNHC did not have the adequate financial or administrative staff to perform a physical inventory and therefore has not been keeping with its Financial Policies and Procedures and performing an annual physical inventory.

Categories

Equipment & Real Property Management

Other Findings in this Audit

  • 485678 2023-003
    - Repeat
  • 485679 2023-003
    - Repeat
  • 485680 2023-004
    Material Weakness Repeat
  • 485681 2023-005
    Significant Deficiency Repeat
  • 485682 2023-006
    Significant Deficiency
  • 485683 2023-007
    Significant Deficiency
  • 485684 2023-003
    - Repeat
  • 485685 2023-003
    - Repeat
  • 485686 2023-003
    - Repeat
  • 485687 2023-003
    - Repeat
  • 485688 2023-003
    - Repeat
  • 485689 2023-004
    Material Weakness Repeat
  • 485690 2023-005
    Significant Deficiency Repeat
  • 485691 2023-006
    Significant Deficiency
  • 485692 2023-007
    Significant Deficiency
  • 1062120 2023-003
    - Repeat
  • 1062121 2023-003
    - Repeat
  • 1062122 2023-004
    Material Weakness Repeat
  • 1062124 2023-006
    Significant Deficiency
  • 1062125 2023-007
    Significant Deficiency
  • 1062126 2023-003
    - Repeat
  • 1062127 2023-003
    - Repeat
  • 1062128 2023-003
    - Repeat
  • 1062129 2023-003
    - Repeat
  • 1062130 2023-003
    - Repeat
  • 1062131 2023-004
    Material Weakness Repeat
  • 1062132 2023-005
    Significant Deficiency Repeat
  • 1062133 2023-006
    Significant Deficiency
  • 1062134 2023-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.441 Indian Self-Determination $528,472
93.237 Special Diabetes Program for Indians_diabetes Prevention and Treatment Projects $249,062
93.495 Community Health Workers for Public Health Response and Resilient $24,629
93.788 Opioid Str $21,066
93.772 Tribal Public Health Capacity Building and Quality Improvement Umbrella Cooperative Agreement $15,120
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $14,477