Finding Text
Information on the Federal Program: Assistance Listing Number 81.086— Upper Midwest Inter‐Tribal EV Charging Community Network. Compliance Requirement: Allowable Costs and Cost Principles, Activities Allowed or Unallowed Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including Activities Allowed or Unallowed, Allowable Costs and Cost Principles. Condition: Controls were not operating as designed to ensure that all expenditures charged to the federal program were reviewed and approved. Causes: For two out of ten tested, expenses charged to the federal grant had no documentation of a review and approval prior to the Organization submitting for reimbursement. The Organization relied on a control activity where the Program Director sent an email to the Executive Director for each expense to obtain approval prior to submitting reimbursements. No documented review and approval for this process being performed was available for two expenses upon request by the audit team. Effect or Potential Effect: Unallowable costs or activities could be charged to the grant. Questioned Costs: None Context: There was not sufficient documentation available upon request to support a review and approval process of reimbursement expenses allocated to the grant. The Organization implemented a payment software that includes review and approval features in July of the fiscal year under audit and no errors were found after the implementation. Repeat Finding: No Recommendation: We recommend the organization continue using their payment software for all transactions relating to federal grants and ensure that all expenses are being reviewed and approved through that software. Views of Responsible Officials: Agree.