Finding Text
Finding No.: 2022-009
Federal Agency: U.S. Department of the Interior
AL Program: 15.875 Economic, Social, and Political Development of the Territories
Federal Award No.: Compact Sector Grants
Questioned Costs: $0
Federal Agency: U.S. Department of the Interior
AL Program: 15.875 Economic, Social, and Political Development of the Territories
Federal Award No.: Enewetak/Ujelang Local Government (EULG) Food and Agriculture
Support Program
Questioned Costs: $0
Federal Agency: U.S. Department of Health and Human Services
AL Program: 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases
Federal Award No.: NU50CK000558
Questioned Costs: $0
Area: Reporting
Criteria:
Grant agreements stipulate the type and frequency of reports to be submitted. Furthermore, timely,
accurate and complete reporting should be facilitated by an internal control structure conducive to
the monitoring, preparation and independent review of required reports. Lastly, financial reports
should reconcile with underlying accounting records.
Condition 1 (ALN 15.875 and 93.323):
There is no monitoring of required reports to be submitted or listing of reports already submitted. It
does not appear that RepMar has developed means to monitor compliance with reporting
requirements.
Condition 2 (ALN 15.875 Compact Sector Grants):
Due to lack of certain grant agreements as reported in Finding No. 2022-005, we were unable to
ascertain compliance with reporting requirements.
SF- -
underlying accounting 240P report. Furthermore, no SF-425 report
ended 9/30/2022 was provided for examination.
Condition 3 (ALN 15.875 EULG Food and Agriculture Support Program ):
Required reports were not available for examination.
Condition 4 (ALN 93.323):
Due to lack of certain grant agreements as reported in Finding No. 2022-005, we were unable to
ascertain compliance with reporting requirements.
Required reports were not available for examination.
Cause:
RepMar lacks adequate internal control policies and procedures governing monitoring, preparation
and independent review of required reports. Moreover, RepMar lacks adequate internal control
policies and procedures over retention of all grant agreements, copies of reports submitted to
grantors, and the underlying accounting records.
Effect:
Sufficient appropriate audit evidence supporting compliance with applicable reporting requirements
were not obtained which results in report modification. No questioned cost is reported as the
condition relates to inadequacy of internal control policies and procedures governing monitoring,
preparation, independent review and retention of required reports and underlying accounting
records.
Identification as a Repeat Finding:
Finding Nos. 2021-010 and 2021-012.
Recommendation:
RepMar should establish adequate internal control policies and procedures governing monitoring,
preparation and independent review of required reports. Moreover, RepMar should establish internal
control policies and procedures requiring retention of all grant agreements and copies of reports
submitted to grantors.
Views of Responsible Officials:
We partially agree with the finding and provide details in our Corrective Action Plan.