Finding 1169140 (2023-004)

Material Weakness Repeat Finding
Requirement
F
Questioned Costs
-
Year
2023
Accepted
2026-01-15
Audit: 381963
Auditor: EIDE BAILLY LLP

AI Summary

  • Core Issue: The organization failed to maintain property records as required by federal regulations, leading to material noncompliance.
  • Impacted Requirements: All property records must include specific details such as description, funding source, acquisition date, and condition, as outlined in Title 2 U.S. Code of Federal Regulations Part 200.
  • Recommended Follow-Up: Enhance internal controls to ensure compliance with property record requirements and accurately track all federally funded property and equipment.

Finding Text

U.S. Department of Health and Human Services Passed Through California Rural Indian Health Board Federal Financial Assistance Listing Number 93.441 Indian Self-Determination Equipment and Real Property Management Material Noncompliance and Material Weakness in Internal Control over Compliance Grant Award Number - Potentially affects all grant awards included under CFDA 93.441 on the Schedule of Expenditures of Federal Awards. Criteria - Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires property records be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition - Property records were not maintained in accordance with Uniform Guidance for all property and equipment purchased. Cause - The Organization did not have adequate internal controls to ensure its property records included all the requirements under Uniform Guidance or properly identify all property and equipment purchased with federal funds. Effect - Property records were not adequately maintained. Questioned Costs - None. Context/Sampling - No sampling was used. We examined the Organization’s property records in total. Repeat Finding From Prior Year - Yes; finding 2022-004. Recommendation - We recommend the Organization enhance internal controls to ensure its property records include all the requirements under Uniform Guidance and properly identify all property and equipment purchased with federal funds. Views of Responsible Officials - Management agrees with this finding.

Corrective Action Plan

Passed Through California Rural Indian Health Board Federal Financial Assistance Listing Number 93.441 Indian Self-Determination Equipment and Real Property Management Material Noncompliance and Material Weakness in Internal Control over Compliance Grant Award Number - Potentially affects all grant awards included under CFDA 93.441 on the Schedule of Expenditures of Federal Awards. Criteria - Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires property records be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition - Property records were not maintained in accordance with Uniform Guidance for all property and equipment purchased. Cause - The Organization did not have adequate internal controls to ensure its property records included all the requirements under Uniform Guidance or properly identify all property and equipment purchased with federal funds. Effect - Property records were not adequately maintained. Questioned Costs - None. Context/Sampling - No sampling was used. We examined the Organization’s property records in total. Repeat Finding From Prior Year - Yes; finding 2022-004. Recommendation - We recommend the Organization enhance internal controls to ensure its property records include all the requirements under Uniform Guidance and properly identify all property and equipment purchased with federal funds. Views of Responsible Officials - Management agrees with this finding Responsibility of: Pat O’Brien, (AMR, Inc.) Consultant, Becky Davis, Controller, Daniel Guerrero, Facilities Estimated Completion Date: June 30, 2026 Status: Mr. Guerrero has been assigned the responsibility to update the physical inventory of fixed assets. The historical records of assets purchased and the required documentation per Uniform Guidance is in the process of being reviewed and (if possible) updated.

Categories

Equipment & Real Property Management

Programs in Audit

ALN Program Name Expenditures
93.441 INDIAN SELF-DETERMINATION $7.51M
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $3.68M
93.933 DEMONSTRATION PROJECTS FOR INDIAN HEALTH $561,333
93.237 SPECIAL DIABETES PROGRAM FOR INDIANS DIABETES PREVENTION AND TREATMENT PROJECTS $480,933
93.654 INDIAN HEALTH SERVICE BEHAVIORAL HEALTH PROGRAMS $454,939
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $207,277
93.047 SPECIAL PROGRAMS FOR THE AGING, TITLE VI, PART A, GRANTS TO INDIAN TRIBES, PART B, GRANTS TO NATIVE HAWAIIANS $156,965
93.011 NATIONAL ORGANIZATIONS FOR STATE AND LOCAL OFFICIALS $146,867
93.788 OPIOID STR $130,368
93.479 GOOD HEALTH AND WELLNESS IN INDIAN COUNTRY $115,379
93.054 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE VI, PART C, GRANTS TO INDIAN TRIBES AND NATIVE HAWAIIANS $20,740
93.772 TRIBAL PUBLIC HEALTH CAPACITY BUILDING AND QUALITY IMPROVEMENT UMBRELLA COOPERATIVE AGREEMENT $19,439
93.516 PUBLIC HEALTH TRAINING CENTERS PROGRAM $16,251
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $14,409
93.071 MEDICARE ENROLLMENT ASSISTANCE PROGRAM $13,765
93.989 INTERNATIONAL RESEARCH AND RESEARCH TRAINING $12,902