Finding Text
Information on Federal Programs
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4995-LIHEAP21-
30, 5138-LIHEAP-ARPA-30, and 5195-LIHEAP23-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #5131-LIHEAPEF22-30 and 5055-LIHEAPEF-ARPA-30)
AL# 93.568
Criteria – Section 2 CFR sections 200.303 requires that the auditee establish and maintain
internal control over federal awards to provide reasonable assurance that the auditee is
managing the federal awards in compliance with federal statutes, regulations, and the terms and
conditions of federal awards.
Condition – For the year ended June 30, 2024, we requested supporting documentation to test
the review and approval of a sample of costs charged to the LIHEAP grant. In a sample of 60
expenditures, we noted one instance where a journal entry which allocated expenses to the
grant was not approved.
Cause – Internal controls were updated mid-year to require the review of all journal entries
charged to and reimbursed under federal grants.
Effect or Potential Effect – Federal expenditures may not be in accordance with the allowable
cost/cost principles standards under Uniform Guidance.
Questioned Costs – Undeterminable
Context – The expenditure selected for testing was a journal entry allocated costs but occurred
prior to the change in the internal control requiring review of all journal entries.
Repeat Finding – This is a new finding.
Recommendation – The auditee should review all journal entries that were charged to federal
grants and approve retroactively and document in a memo. Any errors noted should be
correcting with the appropriate granting agencies.