Finding 1158082 (2023-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-09-30
Audit: 370022
Organization: Native Village of Point Hope (AK)

AI Summary

  • Core Issue: The Village failed to submit required financial reports on time for multiple federal programs, indicating a serious lack of internal controls.
  • Impacted Requirements: Reports for the ATG and CTG programs must be submitted within 30 days after each quarter, and the CSLFRF report is due by April 30 each year.
  • Recommended Follow-Up: Ensure compliance with reporting deadlines as outlined in the grant agreements to avoid potential loss of federal funding.

Finding Text

Finding 2023-005 Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of the Interior and U.S. Department of the Treasury Federal Program: Aid to Tribal Governments (ATG); Consolidated Tribal Government (CTG); and Coronavirus State and Local Fiscal Recovery Funds (CSLFRF), respectively ALN: 15.020 (ATG); 15.021 (CTG); and 21.027 (CSLFRF), respectively Award Numbers: A19AV00203 (ATG); A19AV00203 and A22AV00218 (CTG); and SLFRP4178/4850 (CSLFRF), respectively Award Year: 2021 (ATG); 2021 and 2022 (CTG); and 2021 (CSLFRF), respectively Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Program requirements for ATG and CTG programs state that Federal Financial Reports must be submitted within 30 days after the end of each quarter. Program requirements of the CSLFRF program state that Project and Expenditures Report be submitted by April 30th of each year. Condition and context: The Village did not adhere to the quarterly or annual reporting requirements for these programs. We reviewed two quarterly reports for the ATG and CTG programs and all reports reviewed were submitted late. We reviewed the Project and Expenditures Report for the CSLFRF program and determined it was submitted late and the expenditures reported did not agree to the supporting general ledger. Cause: Lack of internal controls over grant and program reporting. Effect: Failure to follow compliance requirements could result in loss of Federal funding. Questioned Costs: None noted. Repeat finding: This is a repeat of Finding 2022-006, and since it is a repeat finding we believe this to be a systemic issue. Recommendation: We recommend the Village adhere to quarterly and annual reporting requirements specified in the grant agreement. Management’s Response: Management concurs with the finding. See Corrective Action Plan.

Corrective Action Plan

Finding 2023-005 Late Reporting and Noncompliance with Reporting Requirements Type of Finding: Material weakness in internal control over compliance and material Noncompliance. Name of Contact: Adela Lane, Executive Director Corrective Action Plan: 1. Update and formalize policies and procedures: • Action: Conduct a comprehensive review and update of the Administrative Manual Systems, Chapter III: Financial Management, focusing specifically on all sections related to Uniform Guidance (UG) reporting. This includes procurement, reporting, and subrecipient monitoring requirements. • Details: o Develop and document detailed, step-by-step procedures for each UG reporting requirement. o Ensure all policies reflect the most current version of the UG, including the 2024 revisions. o Secure formal approval of the revised manual from tribal leadership. 2. Standardize and conduct mandatory staff training: • Action: Develop and implement a structured, mandatory training program for all staff involved in federal grant management, including finance, administrative, and program personnel. • Details: o Content: The training will cover the revised UG policies, focusing on reporting deadlines, documentation requirements, and proper internal controls. o Onboarding: The Executive Director will meet with all new permanent staff within their first two weeks of employment to review these protocols and emphasize the importance of compliance. o Ongoing Training: Conduct annual refresher training for all relevant staff to address any new changes or best practices. 3. Enhance monitoring and oversight: • Action: Establish a robust system of internal oversight to ensure continuous compliance with UG reporting requirements. • Details: o Regular Reviews: The Executive Director will implement a schedule of regular reviews of financial records to confirm that all supporting documentation for federal awards is correctly attached and reports are filed accurately and on time. o Reporting Checklist: Create and use a standardized checklist for each federal award to ensure all specific reporting requirements are met prior to submission. o Audit Readiness: Perform periodic internal compliance checks or "mock audits" to identify and correct potential issues before an external audit. 4. Strengthen documentation and audit trail: • Action: Improve the organization and accessibility of all documentation required for UG reporting to facilitate a clear and defensible audit trail. • Details: o Centralized Record-keeping: Establish a centralized, secure digital location for all federal award documents, including grant agreements, financial reports, and supporting records. o Documentation Protocol: Implement a protocol requiring all relevant personnel to upload and correctly label all necessary documentation immediately after a transaction is completed. 5. Designate responsibility and accountability: • Action: Clearly assign responsibility for each UG compliance task to specific individuals to eliminate confusion and ensure accountability. • Details: For each grant, a lead financial staff member will be designated as the primary point of contact responsible for ensuring all UG reporting and documentation requirements are met. The Executive Director will oversee this process. Proposed Completion Date: Ongoing, starting in early 2026.

Categories

Reporting

Other Findings in this Audit

  • 1158073 2023-004
    Material Weakness Repeat
  • 1158074 2023-005
    Material Weakness Repeat
  • 1158075 2023-006
    Material Weakness Repeat
  • 1158076 2023-007
    Material Weakness Repeat
  • 1158077 2023-004
    Material Weakness Repeat
  • 1158078 2023-005
    Material Weakness Repeat
  • 1158079 2023-006
    Material Weakness Repeat
  • 1158080 2023-007
    Material Weakness Repeat
  • 1158081 2023-004
    Material Weakness Repeat
  • 1158083 2023-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.867 Indian Housing Block Grants $375,302
15.020 Aid to Tribal Governments $374,218
21.027 Coronavirus State and Local Fiscal Recovery Funds $360,593
15.021 Consolidated Tribal Government $245,868
20.205 Highway Planning and Construction $178,417
15.141 Indian Housing Assistance $96,639
93.047 Special Programs for the Aging, Title Vi, Part A, Grants to Indian Tribes, Part B, Grants to Native Hawaiians $67,149
15.144 Indian Child Welfare Act Title II Grants $65,737
21.032 Local Assistance and Tribal Consistency Fund $56,261
15.040 Real Estate Programs Indian Lands $30,076
15.024 Indian Self-Determination Contract Support $24,849
15.130 Indian Education Assistance to Schools $8,520
15.029 Tribal Courts $1,896