Finding Text
Finding 2023‐001:
Information on the Federal Program: Assistance Listing Number 81.086— Upper Midwest Inter‐Tribal EV Charging
Community Network.
Compliance Requirement: Allowable Costs and Cost Principles, Activities Allowed or Unallowed
Type of Finding: Significant deficiency in internal control over compliance.
Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program
Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal
control over the federal award that provides reasonable assurance that the entity is managing the federal award
in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including
Activities Allowed or Unallowed, Allowable Costs and Cost Principles.
Condition: Controls were not operating as designed to ensure that all travel reimbursements and payroll
expenditures were reviewed and approved prior to payment.
Causes: SDK notes that for the two reimbursement draw down dates selected for testing, pay for one of the three
workers in each draw down request lacked proper review and approval of hours allocated to the grant. There was
not adequate documentation of hours charged to the grant for the executive director as of the date of audit
requests. For one of seven remaining non‐payroll transactions tested for allowability, approval documentation
did not exist.
Effect or Potential Effect: Unallowable costs or activities could be charged to the grant.
Questioned Costs: None
Context: There was not sufficient documentation available upon request to support a review and approval process
of the Executive Director’s pay allocated to the grant nor for a travel reimbursement.
Repeat Finding: No
Recommendation: We recommend that a process for board review and approval of the executive director’s hours
be implemented and performed on a regular (at least quarterly) basis. We additionally recommend approval be
documented for all expenditures prior to charging to a federal grant.
Views of Responsible Officials: Agree.