FAC Explorer

Finding 1062246 (2023-002)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-09-05
Audit: 318611
Organization: Houlton Band of Maliseet Indians (ME)
Auditor: Rhr Smith & Company

AI Summary

  • Core Issue: The Band's process for documenting disbursement approvals is ineffective, leading to potential compliance risks.
  • Impacted Requirements: Internal controls under Title 2 CFR 200.303 are not adequately established, risking unallowable costs.
  • Recommended Follow-Up: Implement stronger internal control processes to ensure compliance with federal regulations and proper documentation of expenditures.

Finding Text

2023-002 – Allowable Activities/Allowable Costs Federal Program Information: Department of Interior: CFDA - 93.600 - Head Start Cluster Criteria: Title 2 CFR 200.303 requires effective internal controls over Federal Award provide a reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal Statutes, regulations, terms and conditions of the award. Condition: During the audit procedures it was identified that the Band’s process to document approval over disbursements is not working effectively. Cause: Band does not have the necessary internal controls over compliance. Effect: Insufficient Controls could allow for unallowable costs to be charged. Identification of Questioned Costs: None identified. Context: There were 101 cash disbursements and 25 were tested and it was found that 5 of the disbursements tested had receipts/invoices that were not legible or provided documentation that was not an invoice these 5 also did not include descriptions of what was purchased. The same 5 disbursements included payment of sales tax that was charged to the grant. This is not statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Band implements internal control processes and procedures to ensure that they are following the criteria above. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the Houlton Band of Maliseet Indians.

Categories

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 485796 2023-001
    Significant Deficiency
  • 485797 2023-001
    Significant Deficiency
  • 485798 2023-001
    Significant Deficiency
  • 485799 2023-001
    Significant Deficiency
  • 485800 2023-001
    Significant Deficiency
  • 485801 2023-001
    Significant Deficiency
  • 485802 2023-001
    Significant Deficiency
  • 485803 2023-001
    Significant Deficiency
  • 485804 2023-002
    Significant Deficiency
  • 485805 2023-002
    Significant Deficiency
  • 485806 2023-002
    Significant Deficiency
  • 1062238 2023-001
    Significant Deficiency
  • 1062239 2023-001
    Significant Deficiency
  • 1062240 2023-001
    Significant Deficiency
  • 1062241 2023-001
    Significant Deficiency
  • 1062242 2023-001
    Significant Deficiency
  • 1062243 2023-001
    Significant Deficiency
  • 1062244 2023-001
    Significant Deficiency
  • 1062245 2023-001
    Significant Deficiency
  • 1062247 2023-002
    Significant Deficiency
  • 1062248 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.71M
14.862 Indian Community Development Block Grant Program $841,600
15.024 Indian Self-Determination Contract Support $535,725
93.U01 Standby Power and Asset Management $442,459
84.250 American Indian Vocational Rehabilitation Services $400,425
93.654 Indian Health Service Behavioral Health Programs $318,896
15.021 Consolidated Tribal Government Program $318,540
66.605 Performance Partnership Grants $253,556
20.933 National Infrastructure Investments $213,958
21.032 Local Assistance and Tribal Consistency Fund $161,551
16.587 Violence Against Women Discretionary Grants for Indian Tribal Governments $161,121
15.037 Water Resources on Indian Lands $136,554
15.639 Tribal Wildlife Grants Program $88,215
15.904 Historic Preservation Fund Grants-in-Aid $69,334
93.237 Special Diabetes Program for Indians_diabetes Prevention and Treatment Projects $47,726
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $46,373
93.587 Promote the Survival and Continuing Vitality of Native American Languages $36,327
20.509 Formula Grants for Rural Areas and Tribal Transit Program $24,065
15.141 Indian Housing Assistance $21,836
10.558 Child and Adult Care Food Program $15,059
16.726 Juvenile Mentoring Program $12,329
93.047 Special Programs for the Aging_title Vi, Part A, Grants to Indian Tribes_part B, Grants to Native Hawaiians $11,792
93.600 Head Start $11,547
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $9,494
20.205 Highway Planning and Construction $9,438
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $7,897
16.841 Voca Tribal Victim Services Set-Aside Program $7,763
93.645 Stephanie Tubbs Jones Child Welfare Services Program $7,385
17.265 Native American Employment and Training $6,879
15.033 Road Maintenance_indian Roads $6,707
93.575 Child Care and Development Block Grant $6,326
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $3,749
15.025 Services to Indian Children, Elderly and Families $1,770
93.556 Promoting Safe and Stable Families $1,526
15.158 Doi National Fire Plan $1,386
93.772 Tribal Public Health Capacity Building and Quality Improvement Umbrella Cooperative Agreement $641
93.228 Indian Health Service_health Management Development Program $382
93.441 Indian Self-Determination $274
15.041 Environmental Management_indian Programs $221
66.436 Surveys, Studies, Investigations, Demonstrations, and Training Grants and Cooperative Agreements - Section 104(b)(3) of the Clean Water Act $209
93.568 Low-Income Home Energy Assistance $83
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $10