Finding 1081321 (2023-004)

2023-004 Reporting Errors in Non-Major Agreements (Other Noncompliance) Criteria – Management is responsible for completing accurate reports for submission to the U.S. Department of the Interior. Condition and Context – Through our audit of the Schedule of Expenditures of Federal Awards (SEFA), we noted errors in reports submitted to the U.S. Department of the Interior for a significant award that is not considered a “major” program. The Federal Financial Report for award #F22AC02260 under 15.630 Coastal Program showed cash receipts and cash disbursements $12,000 higher than actual, and federal share of expenditures $24,417 higher than actual. Cause – RLHT had not properly reconciled cash receipts and disbursements, and expenditures under the cash method as the reports were filed under. Effect – Inaccurate reports were submitted to the U.S. Department of Interior, which could lead to findings and corrective action with the U.S. Department of Interior. Questioned Costs – None Recommendations – RLHT should consider improving tracking of receipts and disbursements under federal awards and consider a review process for all financial reports submitted on those federal awards. Views of Responsible Officials and Planned Corrective Actions – RLHT will seek outside accounting knowledge and experience to help provide oversight and seek guidance from the U.S. Department of Interior when deemed necessary.