Finding Text
Finding Number 2024-002: Represents a material weakness in internal control over compliance with Wabanaki Public Health and Wellness, NPC’s major federal programs. Questioned Costs: None Major Programs: AL#93.243 - Substance Abuse and Mental Health Services – Direct Award (DHHS) – Award numbers: 1H79SM087536-01, 5H79SM087536-02, 1H79SM087590-01, 5H79SP081724-05, 5H79SM082160-04, 5H79SM082160-05, 5H79SP082229-03, 5H79SP082229-04, 1H79SM088765-01, 1H79SM088765-02, 1H79TI085542-01, 5H79TI085542-02, 5H79T086128-02 and Pass-through awards CD9-23-4425 and CD9-25-4425 AL#93.772 - Tribal Public Health Capacity Building and Quality Improvement Umbrella Cooperative Agreement – Direct Award (DHHS) – Award numbers: 6 NU38TO000023-01-00, 6 NU38TO000023-02-00 and 6 NU38OT000257-05-03 AL#93.788 – Opioid STR – Direct Award (DHHS) – Award numbers: 5H79TI083088-02, 5H79TI083088-03, 6H79TI085684-01M003, 1H79T1087860-01 and Pass-through award CD9-24-5124 AL#93.859 – Biomedical Research and Research Training – Direct Award (DHHS) – Award numbers: 5S06GM142115-03 and 5S06GM142115-04 Description: Year End Cutoff Condition: The Organization is responsible for the internal controls over the period-end financial reporting process, including controls over procedures to recognize transactions in the correct period and properly adjust the general ledger. During the audit, it was required to post several material adjusting journal entries to convert the Organization’s financial records to the consolidated financial statements as reported. Adjustments were required to correct accounts payable not reconciled at year end, to adjust grants receivable and refundable advances for current year activity, to adjust promises to give, to adjust contributions with and without donor restrictions and to adjust debt for payments made during the year. This is a repeat finding from the December 31, 2023 audit, finding number 2023-002, the December 31, 2022 audit, finding number 2022-002, and the December 31, 2021 audit, finding number 2021-002. Criteria: Internal controls should be properly designed and implemented for the Organization to ensure timely and accurate period-end financial reporting. Cause: Internal controls over year end reconciliations of the general ledger and financial reporting were not operating as designed. Effect: The Organization’s internal controls over financial reporting at the general ledger and financial statement levels were not adequate to ensure that a material misstatement of grant agreements would be prevented and/or detected. The Organization was not always in compliance with accounting principles generally accepted in the United States. Recommendation: We recommend the Organization continue to evaluate its year end closeout procedures and put processes in place to ensure that all balance sheet accounts are reconciled from support to the general ledger. The Organization should design and implement effective internal control procedures to ensure the financial statements and related notes are free from material misstatements. View of Responsible Officials: Management agrees with the finding and has committed to a corrective action plan.