Finding 1113708 (2024-002)

Finding 2024-002 – Schedule of Expenditures of Federal Awards – Significant Deficiency in Internal Control Over Compliance and Noncompliance Federal program information: Funding agency: All Title: All Assistance Listing Number: All Award year and number: All Criteria: The Uniform Guidance 2 CFR 200.510(b) requires the auditee to prepare a schedule of expenditures of federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 500.502. Condition/Context: Phoenix Indian Center’s schedule of expenditures of federal awards did not include Federal awards expended in accordance with 2 CFR 500.502. Questioned Costs: None. Cause and Effect: Phoenix Indian Center experienced significant turnover in key positions that generally ensure accounting records and financial statements were reconciled timely. As a result, the prepared schedule did not include federal awards expended in accordance with 2 CFR 500.502. Auditors’ Recommendations: To ensure compliance with the Uniform Guidance, Phoenix Indian Center should prepare accurate, complete and timely financial statements and ensure the prepared schedule of expenditures of federal awards is prepared in accordance with 2 CFR 200.510(b). Management’s Response: Agreed, management began even before completion of prior year’s audit to address issues of control and system weaknesses. The process just beginning did not address all things quickly. However, the following correction plan is in effect and systems are now in place.