Finding 1099726 (2023-006)

2023-006 – Variance in Quarterly Reporting Finding Type. Immaterial Noncompliance (Reporting)/Significant Deficiency in Internal Control over Compliance. Program. Coronavirus State and Local Fiscal Recovery Funds (CSLFRF); U.S. Department of Treasury; ALN 21.027. Criteria. CSLFRF grant recipients are required to file quarterly Project and Expenditure ("P&E") reports that include period-to-date and cumulative expenditures. Condition. During our audit, we noted a variance between amounts reported on certain quarterly P&E reports and amounts recorded in the general ledger and presented on the schedule of expenditures of federal awards (SEFA) for fiscal year 2023. Cause. This condition was caused by management not appropriately tracking project expenditures in sufficient detail on the general ledger to allow for reconciliation to the underlying accounting records and each quarterly P&E report. Effect. As a result of this condition, the Tribe did not fully comply with the requirements of the grant award or the Uniform Guidance. Questioned Costs. No costs have been questioned as a result of this finding, inasmuch as the reporting was deemed to be inaccurate, not the financial records. Recommendation. We recommend that the Tribe reconcile quarterly P&E reporting with amounts in the general ledger to ensure that all expenditures reported are classified in the correct project category on the P&E reporting and in the correct reporting period. View of Responsible Officials. Management concurs with this finding. The identified variances have been corrected in subsequent reporting periods during both 2023 and 2024.