Finding 1105388 (2023-003)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2025-03-19

AI Summary

  • Core Issue: There is a material weakness in internal controls regarding allowable costs for the Native American CDFI Assistance Program.
  • Impacted Requirements: Compliance with 2 CFR Part 200 is necessary to ensure only allowable costs are charged to federal grants.
  • Recommended Follow-Up: Management should establish procedures to prevent unallowable costs from being charged to federal grants.

Finding Text

Federal Agency: U.S. Department of Treasury Federal Program Name: Native American CDFI Assistance Program Assistance Listing Number: 21.012 Federal Award Identification Number and Year: 201NA054738 – 2020 and 211NA056263 -2021 Pass-Through Agency: N/A Pass-Through Number: N/A Award Period: September 24, 2020 through December 31, 2023 and December 8, 2021 through December 31, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance – Allowable Costs • Material Noncompliance (Modified Opinion) Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of allowable costs. Condition: During our testing, we noted two unallowable expenditures charged to the grant. Questioned Costs: None Context: During our testing of allowable costs, it was noted that unallowed costs were charged to the grant. Cause: Administrative error in charging unallowable costs to federal grants. Effect: Unallowable expenses were charged to the grant. Repeat Finding: No. Recommendation: We recommend management implement procedures to ensure that unallowable costs are not charged to federal grants. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 528944 2023-002
    Material Weakness
  • 528945 2023-002
    Material Weakness
  • 528946 2023-003
    Material Weakness
  • 528947 2023-003
    Material Weakness
  • 1105386 2023-002
    Material Weakness
  • 1105387 2023-002
    Material Weakness
  • 1105389 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.012 Native Initiatives $460,905
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $385,995
21.025 Small Dollar Loan Program $60,402